Government Corruption News Stories

Excerpts of Key Government Corruption News Stories in Major Media

Below are key excerpts of revealing news articles on government corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

Note: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

Wall Street has already watered down or delayed most of Dodd-Frank [financial reform act]. Now it wants to create a giant loophole, exempting its foreign branches from the law. Yet the overseas branches of Wall Street banks are where the banks have done some of their wilder betting. Four years ago, bad bets by American International Group's London office nearly unraveled the U.S. financial system. When the Commodity Futures Trading Commission, the main regulator of derivatives (bets on bets), recently proposed extending Dodd-Frank to the foreign branches of Wall Street banks, the banks screamed. "If JPMorgan overseas operates under different rules than our foreign competitors," warned Jamie Dimon, chairman and CEO of JPMorgan, Wall Street will lose financial business to the banks of nations with fewer regulations, allowing "Deutsche Bank to make the better deal." This is the same Jamie Dimon who chose London as the place to make highly risky derivatives trades that have lost the firm upward of $2 billion so far - and could leave American taxpayers holding the bag if JPMorgan's exposure to tottering European banks gets much worse. JPMorgan's risky betting in London is added proof that unless the overseas operations of Wall Street banks are covered by U.S. regulations, giant banks will hide irresponsible bets overseas. Squadrons of Wall Street lawyers and lobbyists have been pressing all the agencies charged with implementing Dodd-Frank to go easy on the Street.

Note: The author of this article, Robert Reich, is former U.S. secretary of labor, professor of public policy at UC Berkeley and the author of Aftershock: The Next Economy and America's Future. He blogs at www.robertreich.org.

The former Countrywide Financial Corp., whose subprime loans helped start the nation's foreclosure crisis, made hundreds of discount loans to buy influence with members of Congress, congressional staff, top government officials and executives of troubled mortgage giant Fannie Mae, according to a House report. The report ... said the discounts — from January 1996 to June 2008 — were not only aimed at gaining influence for the company but to help mortgage giant Fannie Mae. Countrywide's business depended largely on Fannie, which ... was responsible for purchasing a large volume of Countrywide's subprime mortgages. "Documents and testimony obtained by the committee show the VIP loan program was a tool used by Countrywide to build goodwill with lawmakers and other individuals positioned to benefit the company," the report said. "In the years that led up to the 2007 housing market decline, Countrywide VIPs were positioned to affect dozens of pieces of legislation that would have reformed Fannie" and its rival Freddie Mac, the committee said. The Justice Department has not prosecuted any Countrywide official, but the House committee's report said documents and testimony show that Mozilo and company lobbyists "may have skirted the federal bribery statute by keeping conversations about discounts and other forms of preferential treatment internal. Rather than making quid pro quo arrangements with lawmakers and staff, Countrywide used the VIP loan program to cast a wide net of influence."

Note: For a treasure trove of reliable reports on the criminality and corruption within the financial and banking industries, click here.

The nuclear accident at Fukushima was a preventable disaster rooted in government-industry collusion and the worst conformist conventions of Japanese culture, a parliamentary inquiry [has] concluded. The report, released by the Fukushima Nuclear Accident Independent Investigation Commission, challenged some of the main story lines that the government and the operator of the Fukushima Daiichi Nuclear Power Plant have put forward. Most notably, the report said the plant’s crucial cooling systems might have been damaged in the earthquake on March 11, 2011, not only in the ensuing tsunami. That possibility raises doubts about the safety of all the quake-prone country’s nuclear plants just as they begin to restart after a pause ordered in the wake of the Fukushima crisis. “It was a profoundly man-made disaster — that could and should have been foreseen and prevented,” said Kiyoshi Kurokawa, the commission’s chairman, in the report’s introduction. “And its effects could have been mitigated by a more effective human response.” The 641-page report criticized Tepco as being too quick to dismiss earthquake damage as a cause of the fuel meltdowns at three of the plant’s six reactors, which overheated when the site lost power. Tepco has contended that the plant withstood the earthquake that rocked eastern Japan, instead placing blame for the disaster on what some experts have called a “once in a millennium” tsunami that followed.

Note: For lots more from reliable major media articles on corruption in the nuclear power industry, click here.

The head of Germany's domestic intelligence service resigned on [July 2] after admitting that his agency had shredded files on a neo-Nazi cell whose killing spree targeting immigrants rocked the country late last year. Heinz Fromm's resignation is the latest in a series of embarrassing setbacks for Germany's security services over their handling of the "National Socialist Underground" (NSU), which went undetected for more than a decade despite its murder of 10 people, mostly ethnic Turkish immigrants. German lawmakers said there was no suggestion that Fromm had ordered the destruction of the files but that he was taking responsibility for others' failures. German media have said an official working in the intelligence agency is suspected of having destroyed files on an operation to recruit far-right informants just one day after the involvement of the NSU in the murders became public. Fromm told the Spiegel weekly that the shredding of files in the case had done "grave damage to the reputation" of his agency, known in Germany as the Federal Office for the Protection of the Constitution. Germans, burdened by their Nazi past, were mortified by last year's news that three neo-Nazis had been behind the killings of eight ethnic Turks, an ethnic Greek and a police officer in a period running from 2000 to 2007. The NSU cell's culpability only came to light after two of the neo-Nazis committed suicide following a botched bank robbery last autumn.

Note: For insightful reports from reliable major media articles on the dark operations of intelligence agencies, click here.

Nearly 70 percent of voters think super PACs should be outlawed, and more than half “strongly” do. We can hardly believe that the billionaire brothers David and Charles Koch will spend more this year than John McCain’s entire presidential campaign raised in 2008. We can’t stand the constant flood of negative ads on every channel or the ominous anonymity of the interests behind them. The Roberts Court sees all this and refuses to acknowledge that it “give[s] rise to corruption or the appearance of corruption.” Fortunately, if on the question of campaign finance the Supreme Court is immune to the court of public opinion, progressives are fighting through other avenues to transform today’s corrupt system into one that is fair, transparent and participatory. In [the] state of New York, Attorney General Eric Schneiderman has launched a path-breaking investigation of tax-exempt groups that might be fraudulently funneling funds into politics, including a “charitable foundation” affiliated with the U.S. Chamber of Commerce. Meanwhile, New York Gov. Andrew Cuomo is partnering with Protect Our Democracy ... to apply the same successful, grass-roots pressure they used in getting same-sex marriage passed to our campaign finance system. They have joined with citizen activists who are looking to New York City’s successful, multiple-match public financing system. A Brennan Center for Justice study showed that this system promoted diversity among candidates and donors and reduced the influence of corporate money.

Note: For key reports from major media sources on problems with US elections, click here.

The Trans-Pacific Partnership (TPP) may soon be an acronym as recognizable as NAFTA — but this free trade venture could have much more economic strength and impact than its North American predecessor. The Trans-Pacific Partnership is a free trade deal aimed at further expanding the flow of goods, services and capital across borders. Its four founding members — New Zealand, Chile, Singapore and Brunei – soon caught the attention of five other nations: the United States, Australia, Peru, Vietnam and Malaysia, who joined in 2008. The nine partners currently have a combined GDP of more than $17 trillion. Canada and Mexico are now being considered for membership, subject to the approval of the nine countries already involved. Add to this the possibility that Japan could join the TPP, despite mounting protests in that country, and the economic and political traction of the group increases. In fact, the TPP could become the world's largest free-trade zone. "It's really a trade agreement for the one per cent and their corporate interests," said Maude Barlow, the National Chairperson of the Council of Canadians, which opposed and continues to criticize NAFTA. "This is not going to be a good deal for Canadians."

Note: A later Toronto Star article reveals that the agreements of the TPP are secret.

A scandal over the rigging of key interest rates could plunge the global banking industry into a legal morass for years, analysts said. The head of the Bank of England said there needed to be "real change" in the industry's culture. Referring to what he called the "deceitful manipulation" of rates, Mervyn King told a news conference [that] the London Interbank Offer Rate (LIBOR) should be reformed to reflect actual market transactions. U.S. and British authorities fined Barclays $453 million on Wednesday for manipulating LIBOR, which underpins some $360 trillion of loans and financial contracts around the world - and analysts forecast more banks would soon be named for collusion. Others predicted Barclays and other banks could face billions in costs from litigation, especially in the United States, in much the same way that oil major BP ran into drawn-out legal rows over its oil spill. Barclays was the first bank to settle in an investigation which is looking at other large financial institutions in Europe, Japan and North America.

Note: This article states that LIBOR underpins some $360 trillion of loans and financial contracts around the world. That's $50,000 for every man, woman, and child on this planet. And it is being hugely manipulated. For more vitally important information on this, learn about the huge amounts of derivatives being manipulated at this link and explore the excellent, reliable information in our Banking Corruption Information Center available here.

Five of the biggest banks in the United States are putting finishing touches on plans for going out of business as part of government-mandated contingency planning that could push them to untangle their complex operations. The plans, known as living wills, are due to regulators no later than July 1 under provisions of the Dodd-Frank financial reform law designed to end too-big-to-fail bailouts by the government. The living wills could be as long as 4,000 pages. Since the law allows regulators to go so far as to order a bank to divest subsidiaries if it cannot plan an orderly resolution in bankruptcy, the deadline is pushing even healthy institutions to start a multi-year process to untangle their complex global operations, according to industry consultants. JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley are among those submitting the first liquidation scenarios to regulators at the Federal Reserve and the Federal Deposit Insurance Corp. The liquidation plans are coming amid renewed questions about the safety of big banks following JPMorgan's stunning announcement last month that a trading debacle has cost it more than $2 billion.

Note: For other key major media articles showing blatant financial corruption, click here. For more vitally important information on banking manipulations, explore the excellent, reliable information in our Banking Corruption Information Center available here.

When JPMorgan Chase CEO Jamie Dimon testified in the U.S. House today, he presented himself as a champion of free-market capitalism in opposition to an overweening government. His position would be more convincing if his bank weren't such a beneficiary of corporate welfare. JPMorgan receives a government subsidy worth about $14 billion a year, according to research published by the International Monetary Fund. The money helps the bank pay big salaries and bonuses. More important, it distorts markets, fueling crises such as the recent subprime-lending disaster and the sovereign-debt debacle that is now threatening to destroy the euro and sink the global economy. In recent decades, governments and central banks around the world have developed a consistent pattern of behavior when trouble strikes banks that are large or interconnected enough to threaten the broader economy: They step in to ensure that all the bank's creditors, not just depositors, are paid in full. With each new banking crisis, the value of the implicit subsidy grows. JPMorgan's share of the subsidy is $14 billion a year, or about 77% of its net income for the past four quarters. In other words, U.S. taxpayers helped foot the bill for the multibillion-dollar trading loss that is the focus of today's hearing. When Dimon pushes back against capital requirements or the Volcker rule, it's worth remembering that he's pushing for a form of corporate welfare that, left unchecked, could lead to a crisis too big for the government to contain.

Note: For more vitally important information on this, explore the excellent, reliable information in our Banking Corruption Information Center available here. For other key major media articles showing blatant financial corruption, click here.

Revelations that top officials are targeting people to be assassinated abroad, including American citizens, are only the most recent, disturbing proof of how far our nation’s violation of human rights has extended. This development began after [9/11] and has been sanctioned and escalated by bipartisan executive and legislative actions. While the country has made mistakes in the past, the widespread abuse of human rights over the last decade has been a dramatic change from the past. With leadership from the United States, the Universal Declaration of Human Rights was adopted in 1948 as “the foundation of freedom, justice and peace in the world.” This was a bold and clear commitment that power would no longer serve as a cover to oppress or injure people, and it established equal rights of all people to life, liberty, security of person, equal protection of the law and freedom from torture, arbitrary detention or forced exile. It is disturbing that, instead of strengthening these principles, our government’s counterterrorism policies are now clearly violating at least 10 of the declaration’s 30 articles, including the prohibition against “cruel, inhuman or degrading treatment or punishment.” Recent legislation has made legal the president’s right to detain a person indefinitely on suspicion of affiliation with terrorist organizations or “associated forces,” a broad, vague power that can be abused without meaningful oversight from the courts or Congress. This law violates the right to freedom of expression and to be presumed innocent until proved guilty, two other rights enshrined in the declaration.

Note: For revealing reports from major media sources on war crimes committed by US forces in the "global war on terror," click here.

Malaysia is brave to organise a war crimes tribunal and to recognise former United States president George W. Bush and his associates as war criminals. In a public forum entitled "9/11 and the Ecological Crisis", renowned theologian, scholar and author Professor David Ray Griffin praised Malaysia for having the courage to bring these prominent figures to justice and to expose their crimes to the international community. "Someone has to get started somewhere, and this is a good start, Malaysia is ideally placed in this aspect and hopefully the international community will take notice," he said. In his lecture, Griffin also explained his theory on the Sept 11 attacks, claiming that it was a "staged event" and could not have been the work of Muslim terrorists. He explained that the rigid steel columns of the (World Trade Center) twin towers made it impossible for them to crumble unless they had been rigged with explosives. Griffin added that the fires could not have come within 1,000 degrees Fahrenheit of the temperature needed to melt steel. He also alleged that the hijackers had minimal competence to fly single-engine aircraft, let alone be able to handle commercial jets. Griffin noted that more than any others, Muslims have paid the greatest price as a result of 9/11 that later launched the war on terrorism. "We have started something called Consensus 9/11 where we have gathered several experts to provide the world with a clear statement, based on expert independent opinion, of some of the best evidence opposing the official narrative about 9/11."

Note: The New Straits Times is Malaysia's oldest newspaper, founded in 1845. This article is a rare example of objective mainstream press coverage of alternative interpretations of the 9/11 events. WantToKnow team member Prof. David Ray Griffin's most recent book on 9/11 is 9/11 Ten Years Later.

Two prominent seismologists said on Tuesday that Japan is ignoring the safety lessons of last year's Fukushima crisis and warned against restarting two reactors next month. Japan has approved the restart of the two reactors at the Kansai Electric Power Ohi nuclear plant, northwest of Tokyo, despite mass public opposition. They will be the first to come back on line after all reactors were shut following a massive earthquake and tsunami last March that caused the worst nuclear crisis since Chernobyl at Tokyo Electric Power's Daiichi Fukushima plant. Seismic modeling by Japan's nuclear regulator did not properly take into account active fault lines near the Ohi plant, Katsuhiko Ishibashi, a seismologist at Kobe University, told reporters. "The stress tests and new safety guidelines for restarting nuclear power plants both allow for accidents at plants to occur," Ishibashi told reporters. "Instead of making standards more strict, they both represent a severe setback in safety standards." Experts advising Japan's nuclear industry had underestimated the seismic threat, Mitsuhisa Watanabe, a tectonic geomorphology professor at Tokyo University, said at the same news conference. "The expertise and neutrality of experts advising Japan's Nuclear Industrial Safety Agency are highly questionable," Watanabe said.

Note: For more from reliable sources on corruption on the nuclear power industry, click here.

The New York Times has published several terrifying reports about New Jersey’s system of halfway houses — privately run adjuncts to the regular system of prisons. The horrors described are part of a broader pattern in which essential functions of government are being both privatized and degraded. So what’s really behind the drive to privatize prisons? One answer is that privatization can serve as a stealth form of government borrowing, in which governments avoid recording upfront expenses (or even raise money by selling existing facilities) while raising their long-run costs in ways taxpayers can’t see. Another answer is that privatization is a way of getting rid of public employees. But the main answer, surely, is to follow the money. As more and more government functions get privatized, states become pay-to-play paradises, in which both political contributions and contracts for friends and relatives become a quid pro quo for getting government business. One thing the companies that make up the prison-industrial complex are definitely not doing is competing in a free market. They are, instead, living off government contracts. And ... despite many promises that prison privatization will lead to big cost savings, such savings — as a comprehensive study by the Bureau of Justice Assistance, part of the U.S. Department of Justice, concluded — “have simply not materialized.” A corrupt nexus of privatization and patronage [is] undermining government across much of our nation.

Note: Few are aware that violent crime rates have dropped to 1/3 of what they were in 1993, yet prison spending continues to skyrocket. Is something wrong with this picture? For key major media new articles exposing more on corruption within the "prison-industrial complex," click here.

It's a curious paradox: Crime rates continue to fall in California, but the number of people killed by the police keeps rising. In Los Angeles County, for example, the number of 2011 homicides was a historic low of 612 people. But the number of fatal police shootings skyrocketed by nearly 70 percent that same year, to 54. That number of fatal shootings by officers was almost equal to 10 percent of the county's homicides last year. Los Angeles is not alone. Nationwide, officer-involved shootings are on the rise, with cities as disparate as Dallas and Albuquerque registering sharp spikes in fatal police shootings. What's going on? It's too soon to know whether 2011 was just an unusual year or the start of a trend. In 2011, 72 officers across the country were killed by perpetrators - a 75 percent increase from 2008. This rough equation makes some sense - if the police are encountering suspects who are more likely to fire on them, they're going to fire back. California is struggling with decades-old budget decisions that have left far too many mentally ill people out on the street, where they can be a danger to themselves and others. Police officers, not caseworkers, are all too often first responders to the mentally unstable. [And] California's ... draconian sentencing laws - followed by prison overcrowding and early release programs - haven't made anyone safer. Legislators and governors have tinkered around the edges of these issues without attempting a full overhaul, but a full overhaul is what the state needs.

Note: For more on corruption within the judicial system and "prison-industrial complex," click here.

If you thought that the fires at the World Trade Center twin towers, set off by the horrific jetliner impacts of September 11, 2001, were the cause of the destruction of those iconic skyscrapers, you may be mistaken. Experts now cite evidence showing that high-temperature incendiaries and explosives were planted throughout the twin towers and the lesser-known 47-story Building 7, also destroyed later the same day. So says a group of architects and engineers nearly 1700 strong, represented by Richard Gage, AIA, founder of Architects & Engineers For 9/11 Truth and the director/producer of a new documentary. Two years in the making, the documentary "9/11: Explosive Evidence - Experts Speak Out - FINAL EDITION " officially debuted today. The film features 43 experts in building engineering, physics, chemistry, and other technical fields, plus a half-dozen psychologists who discussed the denial of the evidence that the AE911Truth engineers have been seeking to get attention to since the founding of the nonprofit organization in 2007. The group's petition, signed by 14,000 concerned citizens in addition to the architectural and engineering experts, calls upon the U.S. Congress to initiate a new independent investigation. "The official story about the attacks of September 11 falls apart when you look squarely at the facts and apply basic scientific principles to interpret them," says Gage.

Note: For an early version of this powerful documentary, click here. See our 9/11 Information Center for lots more information on the realities behind 9/11.

Native American tribes are celebrating a major victory in their battle for equal treatment after the US supreme court ruled that the government could no longer short-change them over contracts for public services. The suit claimed that the government had over many years withheld millions of dollars owed to the tribes by imposing a cap on the contracts it had taken out with them. Native American leaders hailed the ruling as an important victory. Rodger Martinez, president of the Ramah Navajo Chapter in New Mexico that was a plaintiff in the case, said they had been saddened that they had to go all the way to the supreme court to find redress. "But we are happy that they sided with us. This gets us back to the principle that the government must pay us what we are entitled to," he said. The dispute over money relates to services provided by the tribes themselves under the Indian Self-Determination Act of 1975. Under that law, the tribes would sub-contract from the federal government public services such as police, schools, fire prevention, hospitals, and infrastructure works, as well as environmental works and subsidies to farmers. Under the arrangement, the federal government would pay the tribes for the services provided, just as it would any other contractor. But from 1994 the government changed the way it paid for the services, no longer paying for each contract in full but handing the tribes a collective lump sum onto which it imposed a ceiling – thereby withholding from them a portion of the moneys owed. The supreme court ruling found this to be unacceptable.

Note: For key reports on government corruption from major media sources, click here.

In 1992, world leaders signed up to something called "sustainability". Few of them were clear about what it meant. Perhaps as a result, it did not take long for this concept to mutate into something subtly different: "sustainable development". Then it made a short jump to another term: "sustainable growth". And now, in the 2012 Rio+20 text that world leaders are about to adopt, it has subtly mutated once more: into "sustained growth". This term crops up 16 times in the document, where it is used interchangeably with sustainability and sustainable development. But if sustainability means anything, it is surely the opposite of sustained growth. Sustained growth on a finite planet is the essence of unsustainability. As a result, the draft document, which seems set to become the final document, takes us precisely nowhere: 190 governments have spent 20 years bracing themselves to "acknowledge", "recognise" and express "deep concern" about the world's environmental crises, but not to do anything about them. The draft and probably final declaration is 283 paragraphs of fluff. It suggests that the 190 governments due to approve it have, in effect, given up on multilateralism, given up on the world and given up on us. So what do we do now?

There's been a lot of speculation about the cufflinks [JPMorgan Chase CEO] Jamie Dimon wore during [his Congressional] testimony. They caught the eye of folks because they seemed to bear some sort of official government stamp. As it turns out, they were emblazoned with the seal of the President of the United States. CNN's Lizzie O'Leary first confirmed the story last night over Twitter. They were, in fact, a gift from a resident of the White House. But people close to the JPMorgan Chase CEO won't say which president gave them to him. Dimon's got a bunch of official U.S. government cufflinks. Search for images of him and you'll see FBI cufflinks, for example. Was Dimon trying to send any particular message by wearing the presidential cufflinks? Was he, for instance, trying to remind the Democrats he supported Obama? Or subtly hinting that he's really the guy in charge?

Note: For powerful reports on financial corruption, click here.

When Jamie Dimon, CEO of JPMorgan Chase Bank, appeared before the Senate Banking Committee on June 13, he was wearing cufflinks bearing the presidential seal. “Was Dimon trying to send any particular message by wearing the presidential cufflinks?” asked CNBC editor John Carney. “Was he . . . subtly hinting that he’s really the guy in charge?” The groveling of the Senators was so obvious that Jon Stewart did a spoof news clip on it. JPMorgan Chase is the biggest campaign donor to many of the members of the Banking Committee. Financial analysts Jim Willie and Rob Kirby think it may be something far larger, deeper, and more ominous. They contend that the $3 billion-plus losses in London hedging transactions that were the subject of the hearing can be traced, not to European sovereign debt (as alleged), but to the record-low interest rates maintained on U.S. government bonds. The national debt is growing at $1.5 trillion per year. Ultra-low interest rates must be maintained to prevent the debt from overwhelming the government budget. Near-zero rates also need to be maintained because even a moderate rise would cause multi-trillion dollar derivative losses for the banks, and would remove the banks’ chief income stream, the arbitrage afforded by borrowing at 0% and investing at higher rates. The low rates are maintained by interest rate swaps, called by Willie a “derivative tool which controls the bond market in a devious artificial manner.”

Note: We don't usually use alternet.org as a reliable source, but because the major media failed to ask the hard, very important questions posed in this article, we've included it here. For powerful reports on financial corruption, click here.

Even before NATO forces begin leaving Afghanistan, [other countries are] trying to win access to the nation's vast natural resources after Western troops leave. Chief among them are China, Iran and India. For example, in Beijing late last week, Afghan President Hamid Karzai and Chinese President Hu Jintao signed a deal allowing China to pursue mineral resources, energy development and agricultural opportunities. Over the past decade, China has given the Afghan government $246 million in aid -- while spending $3.5 billion to develop a cooper mine there. India ... has won rights to mine iron ore. And Iran ... is promising copious aid and assistance after NATO leaves. Underlying all of this is the discovery that Afghanistan holds at least $1 trillion in untapped natural resources, including oil, cobalt, iron ore, gold and precious metals, among them lithium, used to power batteries. An internal Pentagon memo, now widely quoted, calls Afghanistan "the Saudi Arabia of lithium."

Important Note: Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.