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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.


Federal appeals court sets limits on police use of Tasers
2009-12-29, McClatchy News
Posted: 2010-01-04 14:16:05
http://www.mcclatchydc.com/251/story/81381.html

A federal appeals court [has] issued one of the most comprehensive rulings yet limiting police use of Tasers against low-level offenders who seem to pose little threat and may be mentally ill. In a case out of San Diego County, the 9th U.S. Circuit Court of Appeals criticized an officer who, without warning, shot an emotionally troubled man with a Taser when he was unarmed, yards away, and neither fleeing nor advancing on the officer. Sold as a nonlethal alternative to guns, Tasers deliver an electrical jolt meant to subdue a subject. The stun guns have become a common and increasingly controversial tool used by law enforcement. As lawsuits have proliferated against police and Taser International, which manufactures the weapons, the nation's appellate courts have been trying to define what constitutes appropriate Taser use. "Officer McPherson's desire to quickly and decisively end an unusual and tense situation is understandable," Judge Kim McLane Wardlaw wrote for the court. "His chosen method for doing so violated Bryan's constitutional right to be free from excessive force." Some lawyers called it a landmark decision.

Note: For lots more from major media sources on the dangers of supposedly "non-lethal" weapons, click here.


US aid tied to purchase of arms
2010-01-02, Sydney Mountain Herald
Posted: 2010-01-04 14:13:56
http://www.smh.com.au/world/us-aid-tied-to-purchase-of-arms-20100101-llsb.html

Just before Christmas, the US President, Barack Obama, signed into law one of his country's biggest aid pledges of the year. It was bound not for Africa or any of the many struggling countries on the World Bank's list. It was a deal for $US2.77 billion ($3 billion) to go to Israel in 2010 and a total of $US30 billion over the next decade. Israel is bound by the agreement to use 75 per cent of the aid to buy military hardware made in the US. For the first time the US is also providing $US500 million to the Palestinian Authority, including $US100 million to train security forces, under the strict proviso that the authority's leadership recognises Israel. For many years Israel has been the largest recipient of US foreign aid, followed by Egypt ($US1.75 billion), which also receives most of its assistance in tied military aid. The Congressional Research Service says that the US spent 17 per cent of its total aid budget - or $US5.1 billion - on military aid in 2008, of which $US4.7 billion was grants to enable governments to receive equipment from the US.

Note: Israel's population is 7.5 million. If you do the math, the US is providing the equivalent of $4,000 in aid to every man, woman and child in Israel over the next decade, with $3,000 of that to buy US military hardware. For lots more on government-facilitated profiteering in the arms industry, click here and here.


Has Swine Flu Been Oversold?
2009-12-08, ABC News
Posted: 2010-01-04 14:10:06
http://abcnews.go.com/Health/SwineFluNews/swine-flu-blown-proportion/story?id...

A new analysis, using H1N1 deaths in the United States in the spring and projecting likely outcomes for this fall, shows that a typical -- or possibly even a milder flu season than average -- should have been expected. The finding [raises] the question: Has swine flu been oversold? The new study, done by researchers at Harvard University and the Medical Research Council Biostatistics Unit in the U.K., says swine flu cases in the spring indicated a flu season that might be, at worst, slightly worse than normal. "It would have been great to have that back in June," said Philip Alcabes, an associate professor in the program in urban public health at Hunter College's School of Health Sciences. "There would have been one more bit of evidence behind my assertion six months ago" that people were overreacting to H1N1. Around the time that swine flu first started making headlines, Alcabes' book, Dread: How Fear and Fantasy Have Fueled Epidemics From the Black Death to Avian Flu, was published, and he said the circumstances surrounding H1N1 provide an apt case study. "I think that it was, from the very beginning, created as a crisis and overstated as a real threat," he said.

Note: For powerful, reliable articles showing major profiteering and fear-mongering around the swine flu to the great risk of public health, click here and here.


Fewer Law Enforcement Officers Died on Job in 2009
2009-12-28, New York Times
Posted: 2010-01-04 14:07:09
http://www.nytimes.com/aponline/2009/12/28/us/politics/AP-US-Police-Fatalitie...

Law enforcement deaths this year dropped to their lowest level since 1959, while the decade of the 2000s was among the safest for officers -- despite the deadliest single day for police on Sept. 11, 2001. Through Dec. 27, the report by the National Law Enforcement Officers Memorial Fund found [the following]. 124 officers were killed this year, compared to 133 in 2008. The 2009 total represents the fewest line-of-duty deaths since 108 a half-century ago. Firearms deaths rose to 48, nine more than in 2008. However, the 39 fatalities in 2008 represented the lowest annual figure in more than five decades. One female officer was killed in 2009, compared with 13 the previous year. There was no explanation for the decline. An average of 162 officers a year died in the 2000s, compared with 160 in the 1990s, 190 in the 1980s and 228 in the 1970s -- the deadliest decade for U.S. law enforcement. Seventy-two officers died on Sept. 11.

Note: Why wasn't this article titled something like "Law Enforcement Deaths Lowest in 50 Years"? Why is this inspiring news given so little attention? Did you know that violent crime nationwide in the US has decreased by 50% in the last 15 years? Click here to read about this. Why is news that inspires fear given such prominence while inspiring news gets so little notice? For a possible answer, click here.


Bracelet Promises Air Safety, At A Price
2008-07-31, CBS4-TV (Miami, FL CBS affiliate)
Posted: 2010-01-04 14:03:27
http://cbs4.com/iteam/security.bracelet.security.2.784127.html

Flying today can be stressful, inconvenient and downright difficult. But what if there was a way to make it all easier? What if you had one small device, say a bracelet, which carried all your flight information and other data to make things easier? This bracelet could even track you and your luggage. Former United States Air Marshal Jeffrey Denning describes the idea this way: "The bracelets would take the place of boarding tickets. [They] would also work as a GPS to track air travelers and their luggage." Denning says airline passengers might use this bracelet technology in place of a boarding pass but the government could use it for something else. "And here's the shocking part," Denning said. "No pun intended. If the passengers act up it (the bracelet) would shock and immobilize them for several minutes." That's right. If the flight crew decides that you're getting out of control or posing a threat, to them or the plane, they could simply engage a computer, press a button which would activate this bracelet, shocking and incapacitating you for as long as several minutes. "I guess the design was ... for any air passengers who would become a terrorist or be a terrorist," Denning told [CBS4-TV]. "The bracelet has a capacity to shock ... whoever is wearing it kind of like a police 'taser.'"

Note: What will they think of next? To watch this revealing CBS news broadcast, click here.


Mumbai terror suspect David Headley was ‘rogue US secret agent’
2009-12-17, Times of London
Posted: 2009-12-28 14:28:41
http://www.timesonline.co.uk/tol/news/world/asia/article6960182.ece

A key terror suspect who allegedly helped to plan last year’s attacks in Mumbai and plotted to strike Europe was an American secret agent who went rogue, Indian officials believe. David Headley, 49, who was born in Washington to a Pakistan diplomat father and an American mother, was arrested in Chicago in October. He has denied the charges. He came to the attention of the US security services in 1997 when he was arrested in New York for heroin smuggling. He earned a reduced sentence by working for the US Drug Enforcement Agency (DEA) infiltrating Pakistan-linked narcotics gangs. Indian investigators, who have been denied access to Mr Headley, suspect that he remained on the payroll of the US security services — possibly working for the Central Intelligence Agency (CIA) — but switched his allegiance to LeT. “India is looking into whether Headley worked as a double agent,” an Indian Home Ministry official said yesterday. Mr Headley, who changed his name from Daood Gilani, was in Mumbai until two weeks before the attacks on the city. Despite being firmly on the radar of the US intelligence agencies, he was allowed to return to India as recently as March. Indian officials are furious that their American counterparts did not share details of that visit at the time. The Indian media has raised the possibility that Mr Headley was being protected by his American handlers — a theory that experts say is credible.

Note: For many other reports from major media sources that raise profound questions about the official account of "terrorism," click here.


CIA working with Palestinian security agents
2009-12-17, The Guardian (One of the UK's leading newspapers)
Posted: 2009-12-28 14:26:00
http://www.guardian.co.uk/world/2009/dec/17/cia-palestinian-security-agents

Palestinian security agents who have been detaining and allegedly torturing supporters of the Islamist organisation Hamas in the West Bank have been working closely with the CIA, the Guardian has learned. Less than a year after Barack Obama signed an executive order that prohibited torture and provided for the lawful interrogation of detainees in US custody, evidence is emerging the CIA is co-operating with security agents whose continuing use of torture has been widely documented by human rights groups. The relationship between the CIA and the two Palestinian agencies involved – Preventive Security Organisation (PSO) and General Intelligence Service (GI) – is said by some western diplomats and other officials in the region to be so close that the American agency appears to be supervising the Palestinians' work. One senior western official said: "The [Central Intelligence] Agency consider them as their property, those two Palestinian services." A diplomatic source added that US influence over the agencies was so great they could be considered "an advanced arm of the war on terror". Among the human rights organisations that have documented or complained about the mistreatment of detainees held by the PA in the West Bank are Amnesty International, Human Rights Watch, al-Haq and the Israeli watchdog B'Tselem.

Note: For many accounts from major media sources of the horrific abuses committed by military, intelligence and security forces in the wars of occupation in Palestine, Iraq and Afghanistan, click here.


Banks With Political Ties Got Bailouts
2009-12-21, New York Times/Reuters News
Posted: 2009-12-28 14:20:27
http://www.nytimes.com/reuters/2009/12/21/business/business-us-banks-study.html

U.S. banks that spent more money on lobbying were more likely to get government bailout money. Banks whose executives served on Federal Reserve boards were more likely to receive government bailout funds from the Troubled Asset Relief Program, according to the study from Ran Duchin and Denis Sosyura, professors at the University of Michigan's Ross School of Business. Banks with headquarters in the district of a U.S. House of Representatives member who serves on a committee or subcommittee relating to TARP also received more funds. Political influence was most helpful for poorly performing banks, the study found. "Political connections play an important role in a firm's access to capital," Sosyura, a University of Michigan assistant professor of finance, said in a statement. Banks with an executive who sat on the board of a Federal Reserve Bank were 31 percent more likely to get bailouts through TARP's Capital Purchase Program. Banks with ties to a finance committee member were 26 percent more likely to get capital purchase program funds. As of late September, nearly 700 financial institutions had received bailouts of $205 billion under the capital purchase program. The banking industry has long been criticized for using political influence to obtain bailouts.

Note: For lots more from reliable sources on the symbiosis between big finance and big government, click here.


Trillions Of Troubles Ahead
2009-12-18, Forbes magazine
Posted: 2009-12-28 14:17:23
http://www.forbes.com/2009/12/18/government-budget-deficit-personal-finance-f...

If the government stays on the course it's been on for the past forty years without a radical change, the federal government will soon have a $10 trillion budget. In other words, the federal budget deficit will be $1.4 trillion. Just to make the size more visible, that's $1,400 billion. Our colleague Rob Arnott ... wrote in his recent report that "at all levels, federal, state, local and GSEs, the total public debt is now at 141% of GDP. That puts the United States in some elite company--only Japan, Lebanon and Zimbabwe are higher. That's only the start. Add household debt (highest in the world at 99% of GDP) and corporate debt (highest in the world at 317% of GDP, not even counting off-balance-sheet swaps and derivatives) and our total debt is 557% of GDP. Less than three years ago our total indebtedness crossed 500% of GDP for the first time."

Note: For many revealing reports from major media sources on the realities of the government-financed bank bailouts, click here.


Advisers on Vaccines Often Have Conflicts
2009-12-18, New York Times
Posted: 2009-12-28 14:07:08
http://www.nytimes.com/2009/12/18/health/policy/18cdc.html

A new report finds that the Centers for Disease Control and Prevention did a poor job of screening medical experts for financial conflicts when it hired them to advise the agency on vaccine safety. Most of the experts who served on advisory panels in 2007 to evaluate vaccines for flu and cervical cancer had potential conflicts that were never resolved, the report said. Some were legally barred from considering the issues but did so anyway. In the report ... Daniel R. Levinson, the inspector general of the Department of Health and Human Services, found that the centers failed nearly every time to ensure that the experts adequately filled out forms confirming they were not being paid by companies with an interest in their decisions. The report found that 64 percent of the advisers had potential conflicts of interest that were never identified or were left unresolved by the centers. Thirteen percent failed to have an appropriate conflicts form on file at the agency at all, which should have barred their participation in the meetings entirely, Mr. Levinson found. And 3 percent voted on matters that ethics officers had already barred them from considering.

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


Former CDC head lands vaccine job at Merck
2009-12-21, Reuters News
Posted: 2009-12-28 14:03:53
http://www.reuters.com/article/idUSN2124506920091221

Dr. Julie Gerberding, former director of the U.S. Centers for Disease Control and Prevention, was named president of Merck & Co Inc's vaccine division. Gerberding, who led the CDC from 2002 to 2009 and stepped down when President Barack Obama took office, will head up the company's $5 billion global vaccine business that includes shots to prevent chickenpox, cervical cancer and pneumonia. She had led CDC from one crisis to another, including the investigation into the anthrax attacks that killed five people in 2001, the H5N1 avian influenza, the global outbreak of severe acute respiratory syndrome, or SARS, and various outbreaks of food poisoning. She may be charged with reigniting flagging sales of Merck's Gardasil vaccine to prevent cervical cancer by protecting against human papillomavirus or HPV. After an encouraging launch Gardasil sales have been falling and were down 22 percent in the third quarter at $311 million.

Note: So the head of the CDC now is in charge of vaccines at one of the biggest pharmaceutical companies in the world. Could this be considered conflict of interest? Could this possibly be payback for supporting the vaccine agenda so strongly for years? For more on the risks and dangers of vaccines, click here.


Libel gag on talk of 'medical hurricane'
2009-12-20, Times of London
Posted: 2009-12-28 14:01:13
http://business.timesonline.co.uk/tol/business/law/article6962816.ece

A healthcare firm is seeking to silence a Danish academic from expressing doubts about one of its products by using England’s draconian libel laws. Two years ago in a conference room in the Randolph hotel in Oxford, Henrik Thomsen ... one of Europe’s leading radiologists, revealed how patients treated at his hospital had subsequently contracted a rare and potentially fatal disease. Thomsen and other doctors at his Copenhagen University hospital were baffled as to why 20 kidney patients who had been given routine scans were afflicted by a disorder — nephrogenic systemic fibrosis (NSF) — in which the skin gradually swells, thickens and tightens. Some sufferers were confined to wheelchairs. At least one died. There was no known cure. It was confirmed that all those who had fallen ill with NSF had been given the same drug in advance of a magnetic resonance imaging (MRI) scan. Omniscan was used to enhance the images produced by the scan. The product was sold around the world and was manufactured by GE Healthcare, a subsidiary of General Electric, one of the world’s largest corporations. Thomsen ... now refuses to speak anywhere in England on the possible risks of Omniscan. The reason is that he faces another kind of storm: GE Healthcare is suing him in the High Court for libel. GE has already racked up costs of more than Ł380,000 pursuing the respected academic. Thomsen will have to pay the firm’s costs if he loses the case.

Note: For lots more on corporate corruption from reliable sources, click here.


Bill Moyers on Health Care Reform
2009-12-18, PBS
Posted: 2009-12-28 13:57:58
http://www.pbs.org/moyers/journal/12182009/watch.html

[Bill Moyers:] Something's not right here. One year after the great collapse of our financial system, Wall Street is back on top while our politicians dither. As for health care reform, you're about to be forced to buy insurance from companies whose stock is soaring, and that's just dandy with the White House. It's capital. Raw money, mounds of it, buying politicians and policy as if they were futures on the hog market. Some of the big insurance companies, Well Point, Cigna, United Health, all surged to a 52 week high in their share prices this week when it was clear there'd be no public option in the health care bill going through Congress right now. What does that tell you? ROBERT KUTTNER: Their strategy was cut a deal with the insurance companies, the drug industry going in. And the deal was, we're not going to attack your customer base, we're going to subsidize a new customer base. And that script was pre-cooked so it's not surprising that this is what comes out the other side. Once the White House made this deal with the insurance companies, the public option was never going to be anything more than a fig leaf. And over the summer and the fall, it got whittled down, whittled down, whittled down to almost nothing and now it's really nothing.

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


US forces mounted secret Pakistan raids
2009-12-21, The Guardian (One of the UK's leading newspapers)
Posted: 2009-12-28 13:55:13
http://www.guardian.co.uk/world/2009/dec/21/us-forces-secret-pakistan-raids

American special forces have conducted multiple clandestine raids into Pakistan's tribal areas as part of a secret war in the border region where Washington is pressing to expand its drone assassination programme. A former Nato officer said the incursions, only one of which has been previously reported, occurred between 2003 and 2008, involved helicopter-borne elite soldiers stealing across the border at night, and were never declared to the Pakistani government. "The Pakistanis were kept entirely in the dark about it. It was one of those things we wouldn't confirm officially with them," said the source, who had detailed knowledge of the operations. Such operations are a matter of sensitivity in Pakistan. While public opinion has grudgingly tolerated CIA-led drone strikes in the tribal areas, any hint of American "boots on the ground" is greeted with virulent condemnation. After the only publicly acknowledged special forces raid in September 2008, Pakistan's foreign office condemned it as "a grave provocation" while the military threatened retaliatory action. The military source said that was the fourth raid of previous years. The secretive nature of the raids underscores the suspicious nature of the relationship between the two allies as they argue about Washington's latest demands.

Note: For lots more from reliable sources on the secret realities of the "war on terrorism," click here.


Police expect Mumbai-style terror attack on City of London
2009-12-20, Times of London
Posted: 2009-12-28 13:53:06
http://www.timesonline.co.uk/tol/news/uk/crime/article6962867.ece

Scotland Yard has warned businesses in London to expect a Mumbai-style attack on the capital. In a briefing in the City of London ... a senior detective from SO15, the Metropolitan police counter-terrorism command, said: “Mumbai is coming to London.” The detective said companies should anticipate a shooting and hostage-taking raid “involving a small number of gunmen with handguns and improvised explosive devices”. The warning — the bluntest issued by police — has underlined an assessment that a terrorist cell may be preparing an attack on London early next year. It was issued by the Met through its network of “security forums”, which provide business leaders, local government and the emergency services with counter-terrorism advice. Officials now report an increase in “intelligence chatter” — communications captured by electronic eavesdropping agencies. One senior security adviser said the police warnings had intensified and become much more specific in the past fortnight. “Before, there has been speculation. Now we are getting what appears to be a definite plot to carry out a firearms attack on London,” he said. Earlier this year, police, military and intelligence services held an exercise in Kent to see whether they could defeat a commando raid in London by terrorists.

Note: How can police "expect" a terror attack? Why wouldn't they be able to thwart it if they have enough information to expect it? With profound questions about the reality of the Mumbai attacks and "terrorism" still unanswered, this prediction of similar attacks in London raises suspicions that the reality may be quite different from what the police are saying. For many other reports from reliable sources that raise profound questions about the official accounts of "terrorist incidents," click here.


US controls bird flu vaccines over bioweapon fears
2008-10-11, USA Today/Associated Press
Posted: 2009-12-28 13:48:39
http://www.usatoday.com/news/world/2008-10-11-3349819523_x.htm

Deep inside an 86-page supplement to United States export regulations is a single sentence that bars U.S. exports of vaccines for avian bird flu and dozens of other viruses to five countries designated "state sponsors of terrorism." The reason: Fear that they will be used for biological warfare. Under this little-known policy, North Korea, Iran, Cuba, Syria and Sudan may not get the vaccines unless they apply for special export licenses, which would be given or refused according to the discretion and timing of the U.S. Three of those nations -- Iran, Cuba and Sudan -- also are subject to a ban on all human pandemic influenza vaccines as part of a general U.S. embargo. The regulations, which cover vaccines for everything from Dengue fever to the Ebola virus, have raised concern within the medical and scientific communities. Officials from the U.S. Department of Health and Human Services and the Centers for Disease Control and Prevention said they were not even aware of the policies until contacted by The Associated Press ... and privately expressed alarm. They make "no scientific sense," said Peter Palese, chairman of the microbiology department at Mount Sinai School of Medicine in New York. Some experts say the idea of using vaccines for bioweapons is far-fetched.


Millions of missing Bush admin. e-mails found
2009-12-14, MSNBC/Associated Press
Posted: 2009-12-21 00:06:38
http://www.msnbc.msn.com/id/34419592

Computer technicians have found 22 million missing White House e-mails from the administration of President George W. Bush ... according to two groups that filed suit over the failure by the Bush White House to install an electronic record keeping system. The two private groups – Citizens for Responsibility and Ethics in Washington [CREW] and the National Security Archive – said Monday they were settling the lawsuits they filed against the Executive Office of the President in 2007. It will be years before the public sees any of the recovered e-mails because they will now go through the National Archives' process for releasing presidential and agency records. Presidential records of the Bush administration won't be available until 2014 at the earliest. The 22 million e-mails "would never have been found but for our lawsuits and pressure from Capitol Hill," said Anne Weismann, chief counsel for CREW. "It was only then that they did this reanalysis and found as a result that there were 22 million e-mails that they were unable to account for before." "We may never discover the full story of what happened here," said Melanie Sloan, CREW's executive director. "It seems like they just didn't want the e-mails preserved." Sloan said the latest count of misplaced e-mails "gives us confirmation that the Bush administration lied when they said no e-mails were missing."

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


Poor Children Likelier to Get Antipsychotics
2009-12-12, New York Times
Posted: 2009-12-21 00:03:52
http://www.nytimes.com/2009/12/12/health/12medicaid.html

New federally financed drug research reveals a stark disparity: children covered by Medicaid are given powerful antipsychotic medicines at a rate four times higher than children whose parents have private insurance. And the Medicaid children are more likely to receive the drugs for less severe conditions than their middle-class counterparts, the data shows. Those findings, by a team from Rutgers and Columbia, are almost certain to add fuel to a long-running debate. Do too many children from poor families receive powerful psychiatric drugs not because they actually need them – but because it is deemed the most efficient and cost-effective way to control problems that may be handled much differently for middle-class children? The questions go beyond the psychological impact on Medicaid children, serious as that may be. Antipsychotic drugs can also have severe physical side effects, causing drastic weight gain and metabolic changes resulting in lifelong physical problems. Part of the reason is insurance reimbursements, as Medicaid often pays much less for counseling and therapy than private insurers do. Studies have found that children in low-income families may have a higher rate of mental health problems – perhaps two to one – compared with children in better-off families. But that still does not explain the four-to-one disparity in prescribing antipsychotics.

Note: For many important health reports from reliable sources, click here.


Ventura Turns Investigator for 'Conspiracy Theory'
2009-12-01, ABC News/Associated Press
Posted: 2009-12-21 00:01:26
http://abcnews.go.com/Entertainment/wireStory?id=9219009

Jesse Ventura is back for another stab at TV stardom, this time hosting a program that digs into conspiracy theories, including alternate views of what was behind the attacks of Sept. 11, 2001, and the purpose of a sprawling research center in remote Alaska. The former Minnesota governor, professional wrestler and Navy SEAL stars in "Conspiracy Theory With Jesse Ventura," ... on truTV. The cable network, part of Turner Broadcasting System Inc., has ordered seven episodes of the hourlong weekly series. Marc Juris, executive vide president and general manager of truTV, said Ventura is passionate about the show and brings "knowledge from the inside" of government. "He's not doing this as an act or a gimmick. It's true to his heart. He's really looking for the answers," Juris told the AP. The premiere episode deals with the High Frequency Active Auroral Research Program, or HAARP, a 35-acre compound of 180 antennas near Gakona, Alaska, that is used to study the Earth's ionosphere. Ventura and those he interviews question whether the government is using the site to manipulate the weather or to bombard people with mind-controlling radio waves. Future "Conspiracy Theory" shows explore alleged cover-ups surrounding the Sept. 11 attacks and whether there are real "Manchurian Candidate" assassins who are programmed to kill, said Juris.

Note: Ventura was also a Navy Seal, where he personally was involved in top secret activities and learned how what is presented to the public is very different from the deeper realities. Don't miss the highly educational episode on the vitally important topic of HAARP by clicking here. And watch the excellent episode on 9/11 by clicking here. You'll be surprised by the new angles presented.


Goldman Fueled AIG Gambles
2009-12-12, Wall Street Journal
Posted: 2009-12-20 23:42:28
http://online.wsj.com/article/SB10001424052748704201404574590453176996032.html

Goldman Sachs Group Inc. played a bigger role than has been publicly disclosed in fueling the mortgage bets that nearly felled American International Group Inc. Goldman was one of 16 banks paid off when the U.S. government last year spent billions closing out soured trades that AIG made with the financial firms. A Wall Street Journal analysis of AIG's trades, which were on pools of mortgage debt, shows that Goldman was a key player in many of them, even the ones involving other banks. Goldman originated or bought protection from AIG on about $33 billion of the $80 billion of U.S. mortgage assets that AIG insured during the housing boom. That is roughly twice as much as Société Générale and Merrill Lynch, the banks with the biggest exposure to AIG after Goldman. In Goldman's biggest deal, it acted as a middleman between AIG and banks, taking on the risk of as much as $14 billion of mortgage-related investments. Then Goldman insured that risk with one trading partner – AIG. When the federal government bailed out the insurer, Goldman avoided losses on its trades with AIG covering a total of $22 billion in assets.

Note: For many revealing reports from reliable, verifiable sources on the hidden realities behind the Wall Street bailout, 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.

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