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.

The OCC’s quarterly report on trading revenues and bank derivatives activities is based on Call Report information provided by all insured U.S. commercial banks and trust companies, reports filed by U.S. financial holding companies, and other published data. The notional amount of derivatives held by insured U.S. commercial banks decreased $1.4 trillion, or 0.6%, from the second quarter of 2011 to $248 trillion. Notional derivatives are 5.7% higher than at the same time last year. Derivatives activity in the U.S. banking system continues to be dominated by a small group of large financial institutions. The five banks with the most derivatives activity hold 96% of all derivatives. Insured commercial banks have more limited legal authorities than do their holding companies.

Note: Graphs in this OCC report (pg. 25 & 26) show that five U.S. banks, JPMorgan Chase, Citibank, BofA, Goldman Sachs, and Morgan Stanley, hold $235 of the $248 trillion above, while their holding companies control an additional $311 of the $326 trillion in derivatives held by holding companies. So these five banks and their holding companies combined hold $546 trillion in derivatives, 95% of the U.S. derivatives market, nearly 80% of the global market, and equivalent to over $75,000 for every person on the planet. If the above link fails, click here. For quarterly derivative reports by the OCC going back to 1995, click here.

After an increase of only 3% in the second half of 2010, total notional amounts outstanding of over-the-counter (OTC) derivatives rose by 18% in the first half of 2011, reaching $708 trillion by the end of June 2011.

Note: The Bank for International Settlements (BIS) is an intergovernmental organization of central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks." It is not accountable to any national government. Their accounting shows a total global derivatives market controlled by the banks of over $700 trillion. That's $100,000 for every man, woman, and child on the planet. As reported in Reuters, the derivatives market is largely unregulated. Do you think there is any manipulation going on here? BIS helps the bankers to work together to keep their hidden power.

A growing number of states are seeking shiny new currencies made of silver and gold. Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place. Unlike individual communities, which are allowed to create their own currency -- as long as it is easily distinguishable from U.S. dollars -- the Constitution bans states from printing their own paper money or issuing their own currency. But it allows the states to make "gold and silver Coin a Tender in Payment of Debts." And since gold has grown exponentially more valuable, while the U.S. dollar continues to lose ground, the notion has become increasingly appealing to state lawmakers, he said. The states' proposals have been gaining steam among Tea Partyers and Republicans, many of whom also endorse a nationwide return to the gold standard, which would require the U.S. dollar to be backed by gold reserves.

The Muslim community in Des Moines, Iowa ... is diverse. The members of the four mosques here are from Yemen, Somalia, Pakistan and Bangladesh, among other nations. [But] the community is a tight-knit group. That’s why what happened at their mosques here is alarming to so many of its members. “That was really surprising, very sad that ... the FBI or Homeland Security would send somebody here to pretend to be Muslim and try to find out what goes on here. I feel there is no need for that,” said Dr. Hamed Baig, president of the Islamic Center of Des Moines. Baig is talking about 42 year-old Arvinder Singh. Baid says he saw Singh a couple of times at his mosque. But it wasn’t until recently that members of the community discovered that Singh, who was raised a Sikh, was allegedly sent into their mosques to spy for the FBI. Singh told CNN that the FBI told him, "'You look Middle Eastern, and we need your help for the war against terror.'" Singh says the FBI came to him with a simple tradeoff: We’ll help you get your citizenship if you help us get some terrorists. Singh says he assumed a Muslim identity -– Rafik Alvi -- and went into the mosques pretending to be interested in converting. He says he frequented mosques all over the state but attended the four in Des Moines regularly for seven years. He says sometimes the FBI gave him pictures of persons of interest and he would confirm that they were at the mosque. On a few occasions, Singh says he taped his conversations with congregants.

Note: For lots more from major media sources on the clandestine operations of the FBI and other intelligence agencies, click here.

A federal appeals court on [February 2] sanctioned lawyers behind a lawsuit accusing former officials in the Bush administration of orchestrating the Sept. 11 attacks. The U.S. Court of Appeals for the 2nd Circuit ordered two California lawyers to pay $15,000 in addition to double what the government spent defending the case. Three attorneys -- Dennis Cunningham, William Veale and Mustapha Ndanusa -- filed the lawsuit in 2008 on behalf of April Gallop, a member of the U.S. Army injured in the Pentagon attack on Sept. 11, 2001. The lawyers accused then-Vice President Dick Cheney and Donald Rumsfeld of causing the attacks on the World Trade Center and the Pentagon in order to create a political atmosphere that would allow the U.S. government to pursue domestic and international policy objectives. The suit alleged conspiracy to cause death and bodily harm and a violation of the Antiterrorism Act. U.S. District Judge Denny Chin dismissed the case in 2010, ruling that the complaint was frivolous and a product of "cynical delusion and fantasy." A three-judge panel of the 2nd Circuit upheld that decision, imposing $15,000 in sanctions on the three lawyers for filing the suit. "We are not delusional by any means. We have the facts, and they cannot be explained," said Veale, a former chief assistant public defender for Contra Costa County, California. The U.S. Attorney's Office for the Southern District of New York declined to comment on the litigation. The case is Gallop v. Cheney et al, U.S. Court of Appeals for the 2nd Circuit, No. 10-1241.

Note: Unmentioned in this article is the fact that the appeals panel which sanctioned the lawyers was presided over by a cousin of former Pres. George W. Bush, who had refused to recuse himself from the case as requested by the lawyers. For more information on this important court case brought by US soldier April Gallop, who was in the Pentagon where it was struck on 9/11, and whose account was suppressed by the FBI but has been brought to light by, among others, Jesse Ventura on his recent television program on the Pentagon, click here and here.

More and more US schools have police patrolling the corridors. Pupils are being arrested for throwing paper planes and failing to pick up crumbs from the canteen floor. Why is the state criminalising normal childhood behaviour? Like hundreds of schools in the state, and across large parts of the rest of the US, Fulmore Middle [school] has its own police force with officers in uniform who carry guns to keep order in the canteens, playgrounds and lessons. Each day, hundreds of schoolchildren appear before courts in Texas charged with offences such as swearing, misbehaving on the school bus or getting in to a punch-up in the playground. Children have been arrested for possessing cigarettes, wearing "inappropriate" clothes and being late for school. In 2010, the police gave close to 300,000 "Class C misdemeanour" tickets to children as young as six in Texas for offences in and out of school, which result in fines, community service and even prison time. What was once handled with a telling-off by the teacher or a call to parents can now result in arrest and a record that may cost a young person a place in college or a job years later. "We've taken childhood behaviour and made it criminal," said Kady Simpkins, a lawyer. "They're kids." The very young are not spared. Texas records show more than 1,000 tickets were issued to primary schoolchildren over the past six years .

Note: For a long list of bizarre arrests of children, for behavior not at all unusual, that have been reported in the mainstream media, click here.

An influential Democrat in Congress, California's Jane Harman, is at the center of a national security scandal that's threatening her political career. Harman is fighting mad after reports that her phone conversation was intercepted by a national security agency wiretap ... in 2005 and 2006. Sources say Harman was overheard talking to an investigative target whose conversations were being legally intercepted. Congressional Quarterly and The New York Times report that Harman discussed using her influence to reduce espionage-related charges against two officials of the American Israeli Public Affairs Committee. In return, the person with whom she was speaking would lobby then-House Minority Leader Nancy Pelosi to appoint Harman chair of the House Intelligence Committee. Harman reportedly ended the conversation by saying, "This conversation doesn't exist." [Congressional Quarterly] also reports that after the intercept, the FBI tried to open an investigation of Harman. But Attorney General Alberto Gonzales pulled the plug because he wanted Harman's help defending the controversial domestic warrantless wiretapping program. The former attorney general had no comment.

Note: For lots more from major media sources on the clandestine operations of the FBI and other intelligence agencies, click here.

Their names were flashed around the world as suicide hijackers who carried out the attacks on America. But yesterday four innocent men told how their identities had been stolen by Osama bin Laden's teams to cover their tracks. The men - all from Saudi Arabia - spoke of their shock at being mistakenly named by the FBI as suicide terrorists. None of the four was in the United States on September 11 and all are alive in their home country. The FBI released the list of 19 suicide terrorists three days after the attacks. The Saudi Airlines pilot, Saeed Al-Ghamdi, 25, and Abdulaziz Al-Omari, an engineer from Riyadh, are furious that the hijackers' "personal details" - including name, place, date of birth and occupation - matched their own. The other two men accused of being terrorists are Salem Al-Hamzi and Ahmed Al-Nami. Mr Al-Hamzi is 26 and had just returned to work at a petrochemical complex in the industrial eastern city of Yanbou ... when the hijackers struck. Mr Al-Nami, 33, from Riyadh, an administrative supervisor with Saudi Arabian Airlines, said that he was in Riyadh when the terrorists struck. The FBI admitted that there was some doubt about the identities of some of the suspects. A spokesman said: "The identification process has been complicated by the fact that many Arabic family names are similar. It is also possible that the hijackers used false identities." The spokesman declined to say whether the FBI would apologise but added: "If we have made mistakes then obviously that would be regrettable."

Note: The deceptions in the official story of 9/11 are nowhere more clearly shown than in this important story. The FBI never revised its list of alleged hijackers, and these four are all later listed in the official 9/11 Commission report as the hijackers. Click here and scroll down a little over half way to see their photos in the official report. For more on this, click here. For an abundance of reliable information suggesting a major 9/11 cover-up, click here. For other revealing news articles on 9/11, click here.

When sites like Wikipedia and Reddit banded together for a major blackout January 18th, the impact was felt all the way to Washington D.C. The blackout had lawmakers running from the controversial anti-piracy legislation, SOPA and PIPA, which critics said threatened freedom of speech online. Unfortunately for free-speech advocates, these pieces of legislation are not the only laws which threaten an open internet. Few people have heard of ACTA, or the Anti-Counterfeiting Trade Agreement, but the provisions in the agreement appear quite similar to – and more expansive than – anything we saw in SOPA. Worse, the agreement spans virtually all of the countries in the developed world, including all of the EU, the United States, Switzerland and Japan. Many of these countries have already signed or ratified it, and the cogs are still turning, with the final real fight playing out in the EU parliament. The treaty has been secretly negotiated behind the scenes between governments with little or no public input. The Bush administration started the process, but the Obama administration has aggressively pursued it. Indeed, we signed ACTA in 2011. According to critics, ACTA bypasses the sovereign laws of participating nations, forcing ISP’s across the globe to act as internet police. Worse, it appears to go much further than the internet, cracking down on generic drugs and making food patents even more radical than they are by enforcing a global standard on seed patents that threatens local farmers and food independence across the developed world.

Note: For lots more on government secrecy from reliable sources, click here.

A court case against a translator who leaked US government secrets was conducted in secret because it centred on the revelation that the FBI had eavesdropped on Israeli embassy phone calls, it was revealed yesterday. The extraordinary limitations in place for the prosecution of Shamai Leibowitz, who was sentenced to 20 months in prison for disseminating classified information, meant that even the judge sentencing him did not know what he was supposed to have leaked. "All I know is that it's a serious case," Judge Alexander Williams said last year. "I don't know what was divulged other than some documents, and how it compromised things, I have no idea." But now Richard Silverstein, the blogger to whom Leibowitz passed his information, has come forward to defend his source. Leibowitz passed him about 200 pages of verbatim records of phone calls and conversations between embassy officials, saying that he believed the documents revealed Israeli officials trying unlawfully to influence US policy and edging towards military action against Iran. There has been dismay among civil liberties and open government advocates who point to pledges made by Mr Obama before his election to seek new transparency in Washington. Instead, his administration has launched a record number of prosecutions under the Espionage Act – five including the Leibowitz case. Previously, there had been only four such prosecutions opened by all previous administrations.

Note: For lots more on government secrecy from reliable sources, click here.

The corporate barbarians are through the gate of American democracy. Not satisfied with their all-pervasive influence on our culture, economy and legislative processes, they want more. They want it all. Two years ago, the United States supreme court betrayed our Constitution. In its now infamous decision in the Citizens United case, five justices declared that corporations must be treated as if they are actual people under the Constitution when it comes to spending money to influence our elections, allowing them for the first time to draw on the corporate checkbook – in any amount and at any time – to run ads explicitly for or against specific candidates. What's next … a corporate right to vote? When the supreme court says ... that corporations are people, that writing checks from the company's bank account is constitutionally-protected speech and that attempts by the federal government and states to impose reasonable restrictions on campaign ads are unconstitutional, our democracy is in grave danger. Corporations are not people with constitutional rights equal to flesh-and-blood human beings. Corporations are subject to regulation by the people.

Note: For key reports on the overpowering influence of corporate money on the US political system, click here and here.

California's ban on the sale of pork from "downer" pigs, those that were too feeble to walk before being slaughtered, can't be enforced because a less stringent federal law regulates slaughterhouse inspections, the U.S. Supreme Court ruled unanimously [on January 23]. State lawmakers enacted the ban in 2008 after a Humane Society video showed immobile cows being kicked, dragged, shocked and rammed with forklifts at a warehouse in San Bernardino County. Advocates said meat from those animals was more likely to be diseased. Federal law forbids the sale of meat from animals suffering from serious diseases, a ban that recent regulations extended to cattle that were unable to walk. But federal law allows meat sales from downer pigs and other nonambulatory animals, like sheep and goats, that pass federal inspection. Court challenges from meat processors and packers prevented the California law from taking effect. A federal appeals court upheld the California statute in 2010, but the Obama administration joined the National Meat Association in a successful Supreme Court appeal. The ruling dismayed the Humane Society of the United States, which has unsuccessfully lobbied Congress and the U.S. Department of Agriculture for nationwide rules like California's. "The meat industry has the USDA and Congress in its tight grips," said the society's president, Wayne Pacelle.

Note: For lots more from major media sources on corporate and government corruption, click here and here.

A federal judge on [January 19] blocked Vermont from forcing the Vermont Yankee nuclear reactor to shut down when its license expires in March, saying that the state is trying to regulate nuclear safety, which only the federal government can do. The judge [said] in his ruling that ... state lawmakers and witnesses made clear that their effort to close the plant was "grounded in radiological safety concerns" - the province of the federal Nuclear Regulatory Commission. The commission has already granted Vermont Yankee a 20-year license extension. The ruling is almost certain to be appealed by the state and an array of private groups that want the plant shut down because of leaks of radioactive tritium and other issues. Since Entergy bought Vermont Yankee 10 years ago, public opinion has turned sharply against the plant. After several plants around the country suffered leaks of radioactive water into the soil, state officials asked Vermont Yankee executives in 2009 whether their plant might be susceptible to that problem. The executives said that Vermont Yankee had no underground pipes carrying radioactive material. But it did - and the pipes leaked. The State Senate voted 26 to 4 in 2010 not to authorize the needed certificate.

Note: How convenient for the nuclear power industry that federal judges can block state legislation to shut down dangerous nuclear power plants. For more on corporate and government corruption, click here and here.

Even as we pass judgment on countries we consider unfree, Americans remain confident that any definition of a free nation must include their own — the land of [the] free. Yet ... in the decade since Sept. 11, 2001, this country has comprehensively reduced civil liberties in the name of an expanded security state. The most recent example of this was the National Defense Authorization Act, signed Dec. 31, which allows for the indefinite detention of citizens. While each new national security power Washington has embraced was controversial when enacted, they are often discussed in isolation. But they don’t operate in isolation. They form a mosaic of powers under which our country could be considered, at least in part, authoritarian. Americans often proclaim our nation as a symbol of freedom to the world while dismissing nations such as Cuba and China as categorically unfree. [Yet] the United States now has much more in common with such regimes than anyone may like to admit. These countries also have constitutions that purport to guarantee freedoms and rights. But their governments have broad discretion in denying those rights and few real avenues for challenges by citizens — precisely the problem with the new laws in this country. The list of powers acquired by the U.S. government since 9/11: 1. Assassination of U.S. citizens. 2. Indefinite detention. 3. Arbitrary justice. 4. Warrantless searches. 5. Secret evidence. 6. War crimes. 7. Secret court. 8. Immunity from judicial review. 9. Continual monitoring of citizens. 10. Extraordinary renditions.

Note: Thank you to the Washington Post for publishing this amazing article revealing the disturbing and severe erosion of freedom and civil liberties in the U.S. ever since 9/11. Written by Professor Jonathan Turley of George Washington University in the nation's capital, this incisive essay lays bare what so many citizens don't know, and what many don't even want to know. Yet, in this case, ignorance is not bliss. Don't miss the full article listing the loss of 10 important civil liberties at this link.

Even the world’s most savvy stock-market giants (e.g., Warren E. Buffett) have warned over the past decade that derivatives are the fiscal equivalent of a weapon of mass destruction. And the consequences of such an explosion would make the recent global financial and economic crisis seem like penny ante. But generously lubricated lobbyists for the unrestricted, unsupervised derivatives markets tell congressional committees and government regulators to butt out. While banks all over the world were imploding and some $50 trillion vanished in global stock markets, the derivatives market grew by an estimated 65 percent, according the Bank for International Settlements. BIS convenes the world’s 57 most powerful central bankers in Basel, Switzerland, for periodic secret meetings. Occasionally, they issue a cry of alarm. This time, derivatives had soared from $414.8 trillion at the end of 2006 to $683.7 trillion in mid-2008 - 18 months’ time. The derivatives market is now estimated at $700 trillion. What’s so difficult to understand about derivatives? Essentially, they are bets for or against the house - red or black at the roulette wheel. Or betting for or against the weather in situations in which the weather is critical (e.g., vineyards). Forwards, futures, options and swaps form the panoply of derivatives. Credit derivatives are based on loans, bonds or other forms of credit. Over-the-counter (OTC) derivatives are contracts that are traded and privately negotiated directly between two parties, outside of a regular exchange. All of this is unregulated.

Note: Though not from one of the top U.S. newspapers, this incisive article lays bare severe market manipulations that greatly endanger our world. The entire article is highly recommended. $700 trillion is equivalent to $100,000 for every man, woman, and child in the world! Do you think the financial industry is out of control? For lots more powerful, reliable information on major banking manipulations, click here. For a powerful analysis describing just how crazy things have gotten and giving some rays of hope by researcher David Wilcock, click here.

"In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal." That warning was in [Warren] Buffett's 2002 letter to Berkshire shareholders. He saw a future that many others chose to ignore. Wall Street didn't listen to Buffett. Derivatives grew into a massive bubble, from about $100 trillion to $516 trillion by 2007. Despite Buffett's clear warnings, a massive new derivatives bubble is driving the domestic and global economies, a bubble that continues growing today parallel with the subprime-credit meltdown triggering a bear-recession. Data on the five-fold growth of derivatives to $516 trillion in five years comes from the most recent survey by the Bank of International Settlements, the world's clearinghouse for central banks in Basel, Switzerland. Keep in mind that while the $516 trillion "notional" value (maximum in case of a meltdown) of the deals is a good measure of the market's size, the 2007 BIS study notes that the $11 trillion "gross market values provides a more accurate measure of the scale of financial risk transfer taking place in derivatives markets." The fact is, derivatives have become the world's biggest "black market," exceeding the illicit traffic in stuff like arms, drugs, alcohol, gambling, cigarettes, stolen art and pirated movies. Why? Because like all black markets, derivatives are a perfect way of getting rich while avoiding taxes and government regulations. And in today's slowdown, plus a volatile global market, Wall Street knows derivatives remain a lucrative business.

Note: $516 trillion is equivalent to $75,000 for every man, woman, and child in the world! Do you think the financial industry is out of control? For lots more powerful, reliable information on major banking manipulations, click here. For a powerful analysis describing just how crazy things have gotten and giving some rays of hope by researcher David Wilcock, click here.

The market for derivatives grew at the fastest pace in at least nine years to $516 trillion in the first half of 2007, the Bank for International Settlements said. Credit-default swaps, contracts designed to protect investors against default and used to speculate on credit quality, led the increase, expanding 49 percent to cover a notional $43 trillion of debt in the six months ended June 30, the BIS said in a report published late yesterday. Derivatives of debt, currencies, commodities, stocks and interest rates rose 25 percent from the previous six months, the biggest jump since the Basel, Switzerland-based bank began compiling the data. Investors have been turning to credit derivatives as a way to speculate on a growing risk of defaults amid record U.S. mortgage foreclosures. The money at risk through credit-default swaps increased 145 percent from last year to $721 billion, the report said. The amount at stake in the entire derivatives market is $11.1 trillion, according to the BIS, which was formed in 1930 to monitor financial markets and regulate banks. Derivatives are financial instruments derived from stocks, bonds, loans, currencies and commodities, or linked to specific events like changes in interest rates or the weather. The report is based on contracts traded outside of exchanges in over-the- counter market.

Note: Like most reporting in the major media, this article trivializes the massive size of the derivatives market. $516 trillion is equivalent to $75,000 for every man, woman, and child in the world! Do you think the financial industry is out of control? For lots more powerful, reliable information on major banking manipulations, click here. For a powerful analysis describing just how crazy things have gotten and giving some rays of hope by researcher David Wilcock, click here.

The C.I.A. monitoring of journalists in 1963, 1971 and 1972, including wiretapping their phones and setting up observation posts across the street from their offices to track their comings and goings and their visitors, was a practice that the White House itself employed during the Nixon administration. The description of Project Mockingbird [details] C.I.A. wiretapping of two Washington reporters (unnamed) from March 12, 1963 to June 15, 1963. As with other questionable or illegal C.I.A. activities that were endorsed by top government officials, this account shows that spying on reporters was approved at the highest levels of the Kennedy administration. According to the transcripts of the tapes that President John F. Kennedy secretly recorded in the Oval Office, shortly after 6 p.m. on August 22,1962, JFK and Director of Central Intelligence John McCone discussed a plan for the CIA to wiretap members of the Washington press corps. The president told McCone to set up a domestic task force to stop the flow of secrets from the government to the newspapers. The order violated the agency’s charter, which specifically prohibits domestic spying. By ordering the director of central intelligence to conduct a program of domestic surveillance, Kennedy set a precedent that Presidents Johnson, Nixon, and George W. Bush would follow.

Note: This fascinating report discusses only a limited aspect of Operation Mockingbird, which included as well the placing of CIA agents in news organizations in decision-making positions for purposes of propaganda and information control.

The Pentagon porn story began in 2006. An Immigration and Customs Enforcement [ICE] child pornography sting operation called Project Flicker produced payment records of about 5,200 people, many of whom provided Army or fleet zip codes or military e-mail addresses. Subsequently, the Pentagon's investigative branch, DCIS, began going through the ICE list to identify who actually was a DOD employee. The investigation, however, only ran for eight months, and only cross-checked some 3,500 names for Pentagon ties. According to DCIS documents revealed in a Freedom of Information Act request, out of that 3,500, investigators uncovered 264 employees or contractors, including staffers for the secretary of defense. Nine people had top security clearances. But only about 20 percent of those 264 people were completely investigated. Fewer still were prosecuted. After about eight months, the entire probe was halted. It left about 1,700 names totally unchecked, 1,700 alleged kiddie porn customers, an unknown number of whom may still work in some capacity for the Defense Department. Late last summer, after investigations by "The Boston Globe" and Yahoo! News revealed the figures, a Pentagon spokesman promised to reopen the investigation, conceding that DCIS had stopped due to lack of resources. DCIS says it is now revisiting all 5,200 names. They have now identified 302 employees or staffers. [Yet] of the 302 people confirmed as DOD personnel or contractors, only 70 of them were actually investigated.

Note: To see the CNN video clip of this important news, click here. Isn't it interesting that the Pentagon, with it's huge budget, claims the investigation was stopped due to "lack of resources." If you are ready to see how investigations into a massive child sex abuse ring have led to the highest levels of government, watch the suppressed Discovery Channel documentary "Conspiracy of Silence," available here.

Regulators and the world's $700 trillion derivatives industry are closely watching a legal battle that began in Britain ... and which will fuel a sea change in swaps payouts. Four cases, including one involving a unit of collapsed U.S. bank Lehman Brothers, are being presented in a five-day hearing at the UK Court of Appeal. All revolve around payouts under the derivatives industry's "master agreement", a framework contract. A bank that trades swaps with another bank typically has one master agreement which sets the terms for millions of transactions between them. The master agreement ... covers around 90 percent of off-exchange derivatives transactions. Under the agreement, Lehman's bankruptcy is considered a default. However, in the four cases before the court this week, the other party in the contracts elected not to terminate them because they would have had to pay out to the defunct bank.

Note: Like most reporting in the major media, this article trivializes the massive size of the derivatives market. $700 trillion is equivalent to $100,000 for every man, woman, and child in the world! Do you think the financial industry is out of control? For lots more powerful, reliable information on major banking manipulations, click here. For a powerful analysis of just how crazy things have gotten and with some rays of hope by researcher David Wilcock, click here.

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.