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.

In late 2007, there was the first crack of daylight into the government’s use of waterboarding during interrogations of Al Qaeda detainees. On Dec. 10, John Kiriakou, a former C.I.A. officer who had participated in the capture of the suspected terrorist Abu Zubaydah in Pakistan in 2002, appeared on ABC News to say that while he considered waterboarding a form of torture, the technique worked and yielded results very quickly. Mr. Zubaydah started to cooperate after being waterboarded for “probably 30, 35 seconds,” Mr. Kiriakou told the ABC reporter Brian Ross. “From that day on he answered every question.” His claims — unverified at the time, but repeated by dozens of broadcasts, blogs and newspapers — have been sharply contradicted by a newly declassified Justice Department memo that said waterboarding had been used on Mr. Zubaydah “at least 83 times.” Some critics say that the now-discredited information shared by Mr. Kiriakou and other sources heightened the public perception of waterboarding as an effective interrogation technique. “I think it was sanitized by the way it was described” in press accounts, said John Sifton, a former lawyer for Human Rights Watch. On “World News,” ABC included only a caveat that Mr. Kiriakou himself “never carried out any of the waterboarding.” Still, he told ABC that the actions had “disrupted a number of attacks, maybe dozens of attacks.” A video of the interview was no longer on ABC's website.

Note: For the transcript of the original ABC interview of John Kiriakou, click here. To watch a video of the interview which ABC News removed from its website, click here.

It was supposed to be a photo opportunity, a showcase of Air Force One alongside the sweep of New York City skyline. But as the low-flying Boeing 747 speeded in the shadows of skyscrapers, trailed by two fighter jets, the sight instead awakened barely dormant fears of a terrorist attack, causing a momentary panic that sent workers pouring out of buildings on both sides of the Hudson River. “I thought there was some kind of an attack,” said Paul Nadler, who sprinted down more than 20 flights of stairs after watching the plane from his office in Jersey City shortly after 10 a.m. “We ran like hell.” Witnesses described the engine roar as the planes swooped by office towers close enough to rattle the windows and prompt evacuations at scores of buildings. Some sobbed as they made their way to the street. “As soon as someone saw how close it got to the buildings, people literally ran out,” said Carlina Rivera, 25, who works at an educational services company on the 22nd floor of 1 Liberty Plaza, adjacent to the site of the Sept. 11, 2001, attack. “Probably about 80 percent of my office left within two minutes of seeing how close it got to our building.” Neither the White House nor the F.A.A. explained why the mission was deemed a secret, even though officials conceded the primary purpose was picture taking. Officials at the Department of Transportation and at the Pentagon each denied responsibility for the secrecy.

Note: The official lack of explanation for the government secrecy prior to this terrifying overflight of traumatized Manhattan certainly raises further questions. For lots more on the hidden realities behind the fake "war on terror", click here.

As many as 100 detainees at the prison at Guantánamo Bay, Cuba, could end up held without trial on American soil, Defense Secretary Robert M. Gates suggested Thursday, a situation that he acknowledged would create widespread if not unanimous opposition in Congress. The estimate was the most specific yet from the Obama administration about how many of the 241 prisoners at Guantánamo could not be safely released, sent to other countries or appropriately tried in American courts. Mr. Gates said discussions had started this week with the Justice Department about determining how many of the Guantánamo detainees could not be sent to other countries or tried in courts. He did not say which detainees might be in that group, but independent experts have said it probably would include terrorism suspects whom the military has not yet brought charges against, among them detainees from Yemen and the Qaeda figure Abu Zubaydah, who was subjected to brutal interrogation in secret prisons run by the Central Intelligence Agency. He did not say ... under what law they would be held. The Obama administration is debating how to establish a legal basis for incarcerating detainees deemed too dangerous to be released but not appropriate to be tried because of potential problems posed by their harsh interrogations, the evidence against them or other issues. Mr. Gates said he had asked for $50 million in supplemental financing in case a facility needed to be built quickly for the detainees.

Note: Ironically, it would seem from these plans revealed by Gates that closing the prison in Guantanamo is going to be used as the pretext to establish indefinite detention, without the right of habeas corpus, on American soil. But the reason for the widespread demand to close the prison is precisely to end such detentions! Do they think no one will notice? For many revealing reports from reliable sources on government attempts to erode civil liberties, click here.

In February 1976, an outbreak of swine flu struck Fort Dix Army base in New Jersey, killing a 19-year-old private and infecting hundreds of soldiers. Concerned that the U.S. was on the verge of a devastating epidemic, President Gerald Ford ordered a nationwide vaccination program at a cost of $135 million (some $500 million in today's money). Within weeks, reports surfaced of people developing Guillain-Barré syndrome, a paralyzing nerve disease that can be caused by the vaccine. By April, more than 30 people had died of the condition. Facing protests, federal officials abruptly canceled the program on Dec. 16. The epidemic failed to materialize. Medical historians and epidemiologists say ... the decisions made in the wake of the '76 outbreak — and the public's response to them — provide a cautionary tale for public health officials, who may soon have to consider whether to institute draconian measures to combat the disease. "I think 1976 provides an example of how not to handle a flu outbreak," says Hugh Pennington, an emeritus professor of virology at Britain's University of Aberdeen. Despite modern advances in microbiology, today's health officials still make decisions in a "cloud of uncertainty," Pennington says. "At the moment, our understanding of the current outbreak is similarly limited. For example, we don't yet understand why people are dying in Mexico but not elsewhere." Howard Markel, director of the Center for the History of Medicine at the University of Michigan and a historical consultant to the CDC on flu pandemics, says the most vexing decision facing health officials is when to institute mass vaccination programs.

Note: To watch two short commercials made in 1976 showing clear scare tactics, click here. Then read about and watch a highly revealing 60 Minutes segment covering this deception. Only one person died from the actual flu in this 1976 "epidemic," yet more than 30 died of the flu vaccine. To explore the serious risks of vaccines reported in the media, click here. For lots more on bird and swine flu scares, click here.

The pressures were already immense when David B. Kellermann was promoted to the top financial position at the mortgage giant Freddie Mac last September. Mr. Kellermann's boss and other top executives were ousted when the Treasury secretary seized Freddie Mac and its sibling company, Fannie Mae; others left on their own and were not replaced. Early on Wednesday, Mr. Kellermann went to the basement of his brick home and hanged himself, according to people familiar with the situation who were not authorized to speak. His body was removed five hours later, through a throng of neighbors, television crews and others. "David was such an honest and humble person," said Tim Bitsberger, Freddie Mac"s treasurer until he left in December. "It just doesn't make sense," Mr. Bitsberger said. The roots and causes of suicide are often unclear. It is not known if Mr. Kellermann succumbed to the pressures of his job. But in the aftermath of his death, it is plain that at Freddie Mac, as at many of the companies in the center of this economic storm, there are forces so strong they can overwhelm almost anyone. Mr. Kellermann ... was at the intersection of some of the most difficult issues facing the company. Mr. Kellermann was also working in a poisonous political atmosphere. He was recently involved in tense conversations with the company's federal regulator over its routine financial disclosures. Freddie Mac executives wanted to emphasize to investors that they believed the company was being run to benefit the government, rather than shareholders.

Note: For a revealing archive of reports on the hidden realities underlying the Wall Street bailout, click here.

The director of the Central Intelligence Agency concluded in late 2005 that a conversation picked up on a government wiretap was serious enough to require notifying Congressional leaders that Representative Jane Harman, Democrat of California, could become enmeshed in an investigation into Israeli influence in Washington, former government officials said Thursday. But Attorney General Alberto R. Gonzales told the director of the agency, Porter J. Goss, to hold off on briefing lawmakers about the conversation, between Ms. Harman and an Israeli intelligence operative, despite a longstanding government policy to inform Congressional leaders quickly whenever a member of Congress could be a target of a national security investigation. One reason Mr. Gonzales intervened, the former officials said, was to protect Ms. Harman because they saw her as a valuable administration ally in urging The New York Times not to publish an article about the National Security Agency’s program of wiretapping without warrants. The accounts provided new details about tension between senior C.I.A. officials and the attorney general over what to make of the wiretapped conversations involving Ms. Harman, which the former government officials said first occurred in spring 2005. In the wiretapped conversation, Ms. Harman was overheard agreeing to a request made by an Israeli intelligence operative that she try to obtain leniency for two pro-Israel lobbyists in exchange for help in securing the chairmanship of the House Intelligence Committee, former officials said.

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

While American consumers have been struggling, credit card companies have been enjoying a field day. Not only are most of them receiving federal bailout money, but they've been jacking up interest rates (there were rate hikes on nearly 25 percent of accounts between 2007 and 2008) and switching the terms of agreements with consumers. Why the rush to gouge consumers in the depths of a recession? In July 2010, the Federal Reserve will impose new, consumer-friendly disclosure and administrative restrictions on the credit card industry. Scrambling to get ahead of the deadline, the card companies have been raising interest rates, slicing credit lines and, in too many cases, simply dumping customers with little rhyme or reason. Defaults and delinquencies have skyrocketed - and consumers are livid. "It's off the charts in terms of their ire about paying higher interest rates, particularly when their money, as they see it, is being given to the banks to prop them up," said Rep. Jackie Speier, D-Hillsborough. Speier's staff says her office has been "flooded" with calls from furious constituents. Speier is ... a co-sponsor of HR627, better known as "The Credit Cardholders' Bill of Rights." The bill - which has the support of the Obama administration - would prevent card issuers from raising interest rates without advance notice and end the practice of "double-cycle billing" so that consumers do not have to pay interest on debts they've already paid.

Note: For a highly revealing archive of reports on the hidden realities underlying the Wall Street bailout, click here.

Chrysler turned down additional government funding this month because executives at the troubled auto manufacturer could not agree to new government-mandated limits on executive pay, according to a source familiar with the matter. An official with Chrysler Financial told CNN that the loan was turned down because the company "has determined that it has adequate private capital funding to cover the short-term needs of our dealers and customers and as such, no additional TARP funding is necessary at this time." The official also said that company executives "have not been presented with any new demands with regard to executive compensation." Chrysler already borrowed $1.5 billion from the Treasury under the Troubled Asset Relief Program, or TARP, but those loans were made under less strict regulations pertaining to executive compensation. The Washington Post, which first reported the story online Monday, said the amount of the loan Chrysler rejected was $750 million. A Treasury department spokesman declined to confirm the loan rejection, but told CNN that the administration's Auto Task Force continues to monitor the financing situations for Chrysler and General Motors. "This is an issue that Chrysler and its stakeholders will need to address as part of this process," the spokesman said.

Note: The reason many banks are giving back government loans is very likely also because of executive pay limits. The limits were reported in a NY Times article on Feb. 14, 2009. Not long after came the first news that banks were considering returning the bailout money. Do you think these top execs are more interested in their own paychecks or the health of the company? For a highly revealing archive of reports on the hidden realities underlying the Wall Street bailout, click here.

The National Security Agency intercepted private e-mail messages and phone calls of Americans in recent months on a scale that went beyond the broad legal limits established by Congress last year, government officials said in recent interviews. Several intelligence officials, as well as lawyers briefed about the matter, said the N.S.A. had been engaged in “overcollection” of domestic communications of Americans. They described the practice as significant and systemic. The legal and operational problems surrounding the N.S.A.’s surveillance activities have come under scrutiny from the Obama administration, Congressional intelligence committees and a secret national security court. Congressional investigators say they hope to determine if any violations of Americans’ privacy occurred. It is not clear to what extent the agency may have actively listened in on conversations or read e-mail messages of Americans without proper court authority, rather than simply obtained access to them. While the N.S.A.’s operations in recent months have come under examination, new details are also emerging about earlier domestic-surveillance activities, including the agency’s attempt to wiretap a member of Congress, without court approval, on an overseas trip. After a contentious three-year debate that was set off by the disclosure in 2005 of the program of wiretapping without warrants that President George W. Bush approved after the Sept. 11 attacks, Congress gave the N.S.A. broad new authority to collect, without court-approved warrants, vast streams of international phone and e-mail traffic as it passed through American telecommunications gateways.

Note: For further disturbing reports from reliable sources on government efforts to establish total surveillance systems, click here.

The National Security Agency has been campaigning to lead the government’s rapidly growing cybersecurity programs, raising privacy and civil liberties concerns among some officials who fear that the move could give the spy agency too much control over government computer networks. The security agency’s interest in taking over the dominant role has met resistance, including the resignation of the Homeland Security Department official who was until last month in charge of coordinating cybersecurity efforts throughout the government. Rod Beckstrom, who resigned in March as director of the National Cyber Security Center at the Homeland Security Department, said ... that he feared that the N.S.A.’s push for a greater role in guarding the government’s computer systems could give it the power to collect and analyze every e-mail message, text message and Google search conducted by every employee in every federal agency. Mr. Beckstrom said he believed that an intelligence service that is supposed to focus on foreign targets should not be given so much control over the flow of information within the United States government. To detect threats against the computer infrastructure — including hackers, viruses and intrusions by foreign agents and terrorists — cybersecurity guardians must have virtually unlimited access to networks. Mr. Beckstrom argues that those responsibilities should be divided among agencies. “I have very serious concerns about the concentration of too much power in one agency,” he said. “Power over information is so important, and it is so difficult to monitor, that we need to have checks and balances.”

Note: For further disturbing reports from reliable sources on government efforts to establish total surveillance systems, click here.

The Justice Department ... made public detailed memos describing brutal interrogation techniques used by the Central Intelligence Agency, as President Obama sought to reassure the agency that the C.I.A. operatives involved would not be prosecuted. In dozens of pages of dispassionate legal prose, the methods approved by the Bush administration for extracting information from senior operatives of Al Qaeda are spelled out in careful detail — like keeping detainees awake for up to 11 straight days, placing them in a dark, cramped box or putting insects into the box to exploit their fears. The interrogation methods were authorized beginning in 2002, and some were used as late as 2005 in the C.I.A.’s secret overseas prisons. The United States prosecuted some Japanese interrogators at war crimes trials after World War II for waterboarding and other methods detailed in the memos. Together, the four memos give an extraordinarily detailed account of the C.I.A.’s methods and the Justice Department’s long struggle, in the face of graphic descriptions of brutal tactics, to square them with international and domestic law. Passages describing forced nudity, the slamming of detainees into walls, prolonged sleep deprivation and the dousing of detainees with water as cold as 41 degrees alternate with elaborate legal arguments concerning the international Convention Against Torture. The revelations may give new momentum to proposals for a full-blown investigation into Bush administration counterterrorism programs and possible torture prosecutions.

Note: For many revealing reports from major media sources on increasing threats to civil liberties, click here.

A San Francisco federal judge rejected on Friday the Obama administration's attempt to derail a challenge to former President George W. Bush's electronic surveillance program by withholding a critical wiretap document. President Obama's Justice Department had appeared to defy a previous order by Chief U.S. District Judge Vaughn Walker to allow lawyers for an Islamic organization to see the classified document, which reportedly showed that the group had been wiretapped. The document, which the government accidentally sent to the Al-Haramain Islamic Foundation, could establish its right to sue over the legality of the program. Justice Department lawyers told Walker in February that he had no power to enforce his order, and indicated they would remove the document from his files if he planned to disclose it to Al-Haramain's lawyers. But after a federal appeals court denied the department's request to intervene, Walker told the government Friday to cooperate. "The United States should now comply with the court's orders," the judge said. He told lawyers for the administration and Al-Haramain to work out a protective order by May 8 that would maintain the document's secrecy after it had been shown to the Islamic group's lawyers. If the two sides can't agree, Walker said, he will issue his own protective order "under which this case may resume forward progress." The case is one of two before Walker challenging the constitutionality of the program that Bush secretly authorized in 2001 to intercept phone calls and e-mails between Americans and suspected foreign terrorists without seeking a court warrant, as required by a 1978 law.

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

U.S. taxpayers need to know the risks behind the Federal Reserve’s $2 trillion in lending to financial institutions because the public is now an “involuntary investor” in the nation’s banks, according to a court filing by Bloomberg LP. The Fed refuses to name the borrowers, the amounts of loans or assets banks put up as collateral under 11 programs, arguing that doing so might set off a run by depositors and unsettle shareholders. The largest U.S. banks have tapped more than $125 billion in government aid under the Troubled Asset Relief Program in the past seven months. Assets, including loans and securities, on the Fed balance sheet totaled $2.09 trillion as of April 9. Banks oppose any release of information because that might signal weakness and spur short-selling or a run by depositors, the Fed argued in its March 4 response. The release of the information “can fuel market speculation and rumors,” including a drop in stock price and a run on the bank, the Fed said. Bloomberg replied yesterday that “these speculative injuries relate only to the reactions of customers, shareholders and other members of the public, not to competitors’ use of the borrowers’ proprietary information to their advantage,” the exception to disclosure under the FOIA law. Government loans, spending or guarantees to rescue the U.S. financial system total more than $12.8 trillion since the international credit crisis began in August 2007, according to data compiled by Bloomberg as of March 31. The total includes about $2 trillion on the Fed’s balance sheet.

Note: For an extensive archive of key reports on the hidden realities of the Wall Street bailout, click here.

President Obama must stop the bailouts and start the prosecutions. It's time to focus on anti-poverty programs to protect the growing unemployed from hunger and homelessness. Stealth payments to billionaire bondholders must cease immediately. Since the mid-1970s, average Americans' wages have stayed flat when adjusted for inflation. Productivity rose, profits rose, but not wages. To compensate for stagnant wages and the desire to consume more each year, Americans worked more, retired later, spouses went to work, and many burned savings. Then they started borrowing. Debt became America's growth industry. The scheme collapsed because Americans' wages weren't sufficient to pay the interest on existing debts. The administration and the banks keep talking about a credit crisis, but there isn't one. Banks are lending. If you want a mortgage and can afford to pay it back, you can borrow at low rates today. But most Americans don't want more debt because it is a debilitating path to poverty. The average American family already pays 14 percent of annual income in interest to banks. To fix this fake crisis, there are fake discussions about what the government must do. The endlessly recycled plan to buy "troubled" assets isn't to get banks lending again, because they haven't stopped lending. The plan seeks for taxpayers to buy worthless assets at high prices to absorb rich investors' losses. That's it. It keeps coming back as a different plan, but with that same goal. There is no goal beyond that one goal: keep rich people from taking losses.

Note: For an extensive archive of key reports on the hidden realities of the Wall Street bailout, click here.

The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity. A single clause in Point 19 of the communiqué issued by the G20 leaders amounts to revolution in the global financial order. "We have agreed to support a general SDR allocation which will inject $250bn (Ł170bn) into the world economy and increase global liquidity," it said. SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century.In effect, the G20 leaders have activated the IMF's power to create money and begin global "quantitative easing". In doing so, they are putting a de facto world currency into play. It is outside the control of any sovereign body. Conspiracy theorists will love it. There is now a world currency in waiting. In time, SDRs are likely evolve into a parking place for the foreign holdings of central banks, led by the People's Bank of China. Beijing's moves this week to offer $95bn in yuan currency swaps to developing economies show how fast China aims to break dollar dependence.

Note: For an extensive archive of key reports on the hidden realities of the Wall Street bailout, click here.

Medical personnel were deeply involved in the abusive interrogation of terrorist suspects held overseas by the Central Intelligence Agency, including torture, and their participation was a “gross breach of medical ethics,” a long-secret report by the International Committee of the Red Cross concluded. Based on statements by 14 prisoners who belonged to Al Qaeda and were moved to Guantánamo Bay, Cuba, in late 2006, Red Cross investigators concluded that medical professionals working for the C.I.A. monitored prisoners undergoing waterboarding, apparently to make sure they did not drown. Medical workers were also present when guards confined prisoners in small boxes, shackled their arms to the ceiling, kept them in frigid cells and slammed them repeatedly into walls, the report said. Facilitating such practices, which the Red Cross described as torture, was a violation of medical ethics even if the medical workers’ intentions had been to prevent death or permanent injury, the report said. But it found that the medical professionals’ role was primarily to support the interrogators, not to protect the prisoners, and that the professionals had “condoned and participated in ill treatment.” At times, according to the detainees’ accounts, medical workers “gave instructions to interrogators to continue, to adjust or to stop particular methods.” The Red Cross report was completed in 2007. It was obtained by Mark Danner, a journalist who has written extensively about torture, and posted Monday night with an article by Mr. Danner on the Web site of The New York Review of Books.

Note: Much of content of the Red Cross report was revealed in a March article by Mr. Danner and in a 2008 book, The Dark Side, by Jane Mayer, but the reporting of the Red Cross investigators’ conclusions on medical ethics and other issues are new.

The Federal Deposit Insurance Corporation was set up 76 years ago with the important but simple job of insuring bank deposits. Now, because of what could politely be called mission creep, it’s elbowing its way into the middle of the financial mess as an enabler of enormous leverage. In the fine print of Treasury Secretary Timothy F. Geithner’s plan to lend as much as $1 trillion to private investors to help them buy toxic assets from our nation’s banks, you’ll find some details of how the F.D.I.C is trying to stabilize the system by adding more risk, not less, to the system. It’s going to be insuring 85 percent of the debt, provided by the Treasury, that private investors will use to subsidize their acquisitions of toxic assets. These loans, while controversial, were given a warm welcome by the market when they were first announced. And why not? The terms are hard to beat. They are, for example, “nonrecourse,” which means that if an investor loses money, he owes taxpayers nothing. It’s the closest thing to risk-free investing — with leverage! — around. But, as we’ve learned the hard way these last couple of years, risk-free investing is an oxymoron. So where did the risk go this time? To the F.D.I.C., and ultimately, to us taxpayers. A close reading of the F.D.I.C.’s statute suggests the agency is using a unique — some might call it plain wrong — reading of its own rule book to accomplish this high-wire act. Somehow, in the name of solving the financial crisis, the F.D.I.C. has seemingly been given a blank check, with virtually no oversight by Congress.

Note: For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial bailout, click here.

During World War I, Americans were exhorted to buy Liberty Bonds to help their soldiers on the front. Now, it seems, they will be asked to come to the aid of their banks — with the added inducement of possibly making some money for themselves. As part of its sweeping plan to purge banks of troublesome assets, the Obama administration is encouraging several large investment companies to create the financial-crisis equivalent of war bonds: bailout funds. The idea is that these investments, akin to mutual funds that buy stocks and bonds, would give ordinary Americans a chance to profit from the bailouts that are being financed by their tax dollars. But there is another, deeply political motivation as well: to quiet accusations that all of these giant bailouts will benefit only Wall Street plutocrats. If, as some analysts suspect, the banks’ assets are worth even less than believed, the funds’ investors could suffer significant losses. Nonetheless, the administration and executives in the financial industry are pushing to establish the investment funds, in part to counter swelling hostility against the financial industry. The embrace of smaller investors underscores the concern in Washington and on Wall Street that Americans’ anger could imperil further efforts to stimulate the economy with vast amounts of government spending. Many Americans say they believe the bailout programs ... will benefit only a golden few, including some of the institutions that helped push the economy to the brink. Critics like Joseph E. Stiglitz, a Nobel Prize-winning economist, argue that the bailouts merely privatize profits and socialize losses.

Note: For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial bailout, click here.

The Obama administration’s proposals to reform financial regulation sound ambitious enough as they aim to bring companies like A.I.G. under a broader umbrella of government rule-making and scrutiny. But there is a big hole in these proposals, as there has already been in the government’s approach to bailing out failing financial companies. Even as they focus on firms deemed too big to fail, the new proposals immunize the creditors and counterparties of such firms by protecting them from their own lending and trading mistakes. This pattern has been evident for months, with the government aiding creditors and counterparties every step of the way. Yet this has not been explained openly to the American public. In truth, it’s not the shareholders of the American International Group who benefited most from its bailout; they were mostly wiped out. The great beneficiaries have been the creditors and counterparties at the other end of A.I.G.’s derivatives deals — firms like Goldman Sachs, Merrill Lynch, Deutsche Bank, Société Générale, Barclays and UBS. These firms engaged in deals that A.I.G. could not make good on. The bailout, and the regulatory regime outlined by Timothy F. Geithner, the Treasury secretary, would give firms like these every incentive to make similar deals down the road. In both the bailouts and in the new proposals, the government is effectively neutralizing creditors as a force for financial safety. This suggests a scary possibility — that the next regulatory regime could end up even worse than the last.

Note: For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial bailout, click here.

BILL MOYERS: For months now, revelations of the wholesale greed and blatant transgressions of Wall Street have reminded us that "The Best Way to Rob a Bank Is to Own One." In fact, the man you're about to meet wrote a book with just that title. Bill Black, ... what's your definition of fraud? WILLIAM K. BLACK: Fraud is deceit. And the essence of fraud is, "I create trust in you, and then I betray that trust, and get you to give me something of value." And as a result, there's no more effective acid against trust than fraud, especially fraud by top elites, and that's what we have. Well, The way that you do it is to make really bad loans, because they pay better. Then you grow extremely rapidly, in other words, you're a Ponzi-like scheme. And the third thing you do is we call it leverage. That just means borrowing a lot of money, and the combination creates a situation where you have guaranteed record profits in the early years. That makes you rich, through the bonuses that modern executive compensation has produced. It also makes it inevitable that there's going to be a disaster down the road. BILL MOYERS: So you're ... saying that CEOs of some of these banks and mortgage firms in order to increase their own personal income, deliberately set out to make bad loans? WILLIAM K. BLACK: Yes. BILL MOYERS: If I wanted to go looking for the parties to this, with a good bird dog, where would you send me? WILLIAM K. BLACK: Well, that's exactly what hasn't happened. We haven't looked, all right? You'd look at the specialty lenders. The lenders that did almost all of their work in the sub-prime and what's called Alt-A, liars' loans.

Note: William K. Black is the former senior regulator who cracked down on banks during the savings and loan crisis of the 1980s. He is now an Associate Professor of Economics and Law at the University of Missouri. The video of this fascinating interview is available here. For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial 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.