Corporate Corruption News ArticlesExcerpts of Key Corporate Corruption News Articles in Media
New disclosures show the Federal Reserve rushed trillions of dollars in emergency aid not just to Wall Street but also to ... foreign-owned banks in 2008 and 2009. The central bank's aid programs also supported U.S. subsidiaries of banks based in East Asia, Europe and Canada. The biggest users of the Fed lending programs were some of the world's largest banks, including Citigroup, Bank of America, Goldman Sachs, Swiss-based UBS and Britain's Barclays, according to more than 21,000 loan records released [December 1] under new financial regulatory legislation. The data reveal banks turning to the Fed for help almost daily in the fall of 2008 as the central bank lowered lending standards and extended relief to all kinds of institutions it had never assisted before. The extent of the lending to major banks - and the generous terms of some of those deals - heighten the political peril for a central bank that is already under the gun for a wide range of actions, including a recent decision to try to stimulate the economy by buying $600 billion in U.S. bonds. "The American people are finally learning the incredible and jaw-dropping details of the Fed's multitrillion-dollar bailout of Wall Street and corporate America," said Sen. Bernard Sanders (I-Vt.), a longtime Fed critic whose provision in the Wall Street regulatory overhaul required the new disclosures. "Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations." The Fed launched emergency programs totaling $3.3 trillion in aid, a figure reached by adding up the peak amount of lending in each program.
Note: The figure of $3.3 trillion cited in this article was simply the peak amount lent at one moment in time; the total amount lent by the Fed over the years covered by the data exceeded $20 trillion. For analysis of this data release, click here.
The Department of Health is putting the fast food companies McDonald's and KFC and processed food and drink manufacturers such as PepsiCo, Kellogg's, Unilever, Mars and Diageo at the heart of writing government policy on obesity, alcohol and diet-related disease. In an overhaul of public health, said by [critics] to be the equivalent of handing smoking policy over to the tobacco industry, health secretary Andrew Lansley has set up five "responsibility deal" networks with business, co-chaired by ministers, to come up with policies. The groups are dominated by food and alcohol industry members, who have been invited to suggest measures to tackle public health crises. The alcohol responsibility deal network is chaired by the head of the lobby group the Wine and Spirit Trade Association. The food network to tackle diet and health problems includes processed food manufacturers, fast food companies, and Compass, the catering company. The food deal's sub-group on calories is chaired by PepsiCo, owner of Walkers crisps. The leading supermarkets are an equally strong presence. In early meetings, these commercial partners have been invited to draft priorities and identify barriers, such as EU legislation, that they would like removed. They have been assured by Lansley that he wants to explore voluntary not regulatory approaches, and to support them in removing obstacles.
Somebody owes us $20 trillion. "Inside Job," a riveting, eye-opening, infuriating documentary about the financial collapse of 2008, coolly presents a prosecutor's brief against the culprits who engineered the greatest economic crisis since the Great Depression. They occupy both sides of the legislative aisle, corporate boardrooms, Ivy League faculty lounges and bank headquarters. They made money â€” sometimes obscene amounts of it â€” while rigging a monetary meltdown that left middle-class taxpayers holding the bag, and thousands of less-fortunate former homeowners holding cardboard signs beside freeway on-ramps. This is no dry economics lesson; it is a vital wakeup call. The presentation is articulate and rigorously factual, presented in six chapters, from "How We Got There" to "Accountability." The financial earthquake was not only entirely avoidable, but was utterly predictable given the steady erosion of scrutiny of financial markets here and abroad. Reducing state monitoring under the Reagan administration set the stage for the savings-and-loan crisis and the collapse of the junk-bond market. But that was a luau compared with what lay ahead. Successive administrations, Democratic and Republican alike, heeded advisers pushing for further deregulation, leading to WorldCom, Enron, the dot-com bubble and the 2008 panic. Many of those laissez-faire advocates were prominent academics receiving sizable consulting fees to testify in antitrust cases and in Congress on Wall Street's behalf.
Note: For lots more from reliable sources on the long history of criminal and corrupt practices of major financial powers and regulatory bodies, click here.
As George H. Painter was preparing to retire recently as one of two administrative law judges presiding over investor complaints at the Commodity Futures Trading Commission, he issued an extraordinary request: Please don't assign my pending cases to the other judge. [The CFTC oversees trading of the nation's most important commodities, including oil, gold and cotton.] Painter said Judge Bruce Levine ... had a secret agreement with a former Republican chairwoman of the agency to stand in the way of investors filing complaints with the agency. "On Judge Levine's first week on the job, nearly twenty years ago, he came into my office and stated that he had promised Wendy Gramm, then Chairwoman of the Commission, that we would never rule in a complainant's favor," Painter wrote. "A review of his rulings will confirm that he fulfilled his vow. Judge Levine ... forces pro se complainants to run a hostile procedural gauntlet until they lose hope, and either withdraw their complaint or settle for a pittance, regardless of the merits of the case." Levine was the subject of a story 10 years ago in the Wall Street Journal, which said that except in a handful of cases in which defunct firms failed to defend themselves, Levine had never ruled in favor of an investor. Gramm [wife of former senator Phil Gramm (R-Tex.)], was head of the CFTC just before president Bill Clinton took office. She has been criticized by Democrats for helping firms such as Goldman Sachs and Enron gain influence over the commodity markets. After leaving the CFTC, she joined Enron's board.
Note: For lots more from reliable sources on government corruption, click here.
If you want to understand the way prescription drugs are marketed today, have a look at the 1928 book, Propaganda, by Edward Bernays, the father of public relations in America. For Bernays, the public relations business was less about selling things than about creating the conditions for things to sell themselves. When Bernays was working as a salesman for Mozart pianos, for example, he did not simply place advertisements for pianos in newspapers. That would have been too obvious. Instead, Bernays persuaded reporters to write about a new trend: Sophisticated people were putting aside a special room in the home for playing music. Once a person had a music room, Bernays believed, he would naturally think of buying a piano. As Bernays wrote, "It will come to him as his own idea." Just as Bernays sold pianos by selling the music room, pharmaceutical marketers now sell drugs by selling the diseases that they treat. The buzzword is "disease branding." To brand a disease is to shape its public perception in order to make it more palatable to potential patients. Once a branded disease has achieved a degree of cultural legitimacy, there is no need to convince anyone that a drug to treat it is necessary. It will come to him as his own idea. It is hard to brand a disease without the help of physicians, of course. So drug companies typically recruit academic "thought leaders" to write and speak about any new conditions they are trying to introduce.
Note: This key topic is discussed in great depth in the BBC's documentary "Century of the Self" available here. And for a top doctor's analysis that the cholesterol scare was largely manufactured for profit, click here.
Americans die sooner than citizens of a dozen other developed nations and the usual suspects -- obesity, traffic accidents and a high murder rate -- are not to blame. Instead, poor healthcare may be to blame, the team at Columbia University in New York reported. They found that 15-year survival rates for men and women aged 45 to 65 have fallen in the United States relative to the other 12 countries over the past 30 years. In June, the Commonwealth Fund, which advocates on and does research focusing on healthcare reform, reported that Americans spend twice as much on healthcare as residents of other developed countries -- $7,290 per person -- but get lower quality and less efficiency. Between 1975 and 2005, medical costs went up in all the countries, as did life expectancy. But costs went up far more in the United States and life expectancy increased to a far lower degree. "In 1950, the United States was fifth among the leading industrialized nations with respect to female life expectancy at birth, surpassed only by Sweden, Norway, Australia, and the Netherlands," [the report authors] wrote. At last count, the United States was 46th in female life expectancy; 49th for both sexes.
Note: For key reports from reliable sources on important health issues, click here.
The astounding revelation that U.S. medical researchers intentionally gave Guatemalans gonorrhea and syphilis more than 60 years ago is so horrifying that we want to believe that what happened then could never happen today. A report from the United States Department of Health and Human Services noted that roughly 80 percent of drug approvals in 2008 were based in part on data from outside the U.S. Susan Reverby, a distinguished historian at Wellesley College in Massachusetts, has ... long researched the infamous Tuskegee Syphilis Study, the experiment where poor, black men in rural Alabama were deliberately left untreated for syphilis by government researchers. The study, somehow, was allowed to run from 1932 to 1972. More recently, Reverby came across documents that showed that Dr. John C. Cutler, a physician who would later be one of the researchers involved in the Tuskegee study, was involved in a completely unethical research study much earlier in Guatemala. Cutler, who went to his grave defending the Tuskegee experiment, directly inoculated unknowing prisoners in Guatemala with syphilis and also encouraged them to have sex with diseased prostitutes for his research from 1946-48. His work was sponsored by lauded organizations such as the United States Public Health Service, the National Institutes of Health with collaboration of the Pan American Health Sanitary Bureau (now the Pan American Health Organization), and the Guatemalan government.
Note: The author of this commentary is Arthur Caplan, director of the Center for Bioethics at the University of Pennsylvania. For many other examples of government-sponsored experimentation on human guinea pigs, click here.
The head of the American Association of University Professors has accused BP of trying to "buy" the best scientists and academics to help it contest litigation after the Gulf of Mexico oil spill. "This is really one huge corporation trying to buy faculty silence in a comprehensive way," said Cary Nelson. BP faces more than 300 lawsuits so far. In a statement, BP says it has hired more than a dozen national and local scientists "with expertise in the resources of the Gulf of Mexico". The BBC has obtained a copy of a contract offered to scientists by BP. It says that scientists cannot publish the research they do for BP or speak about the data for at least three years, or until the government gives the final approval to the company's restoration plan for the whole of the Gulf. And it adds that scientists must take instructions from lawyers offering the contracts and other in-house counsel at BP. What Mr Nelson is concerned about is BP's control over scientific research. "Our ability to evaluate the disaster and write public policy and make decisions about it as a country can be impacted by the silence of the research scientists who are looking at conditions," he said. "It's hugely destructive. I mean at some level, this is really BP versus the people of the United States."
Note: For lots more on corporate corruption from reliable sources, click here.
In the fall of 1999, the drug giant SmithKline Beecham secretly began a study to find out if its diabetes medicine, Avandia, was safer for the heart than a competing pill, Actos, made by Takeda. Avandia’s success was crucial to SmithKline, whose labs were otherwise all but barren of new products. But the study’s results, completed that same year, were disastrous. Not only was Avandia no better than Actos, but the study also provided clear signs that it was riskier to the heart. But instead of publishing the results, the company spent the next 11 years trying to cover them up, according to documents recently obtained by The New York Times. The company did not post the results on its Web site or submit them to federal drug regulators, as is required in most cases by law. The heart risks from Avandia first became public in May 2007, with a study from a cardiologist at the Cleveland Clinic who used data the company was forced by a lawsuit to post on its own Web site. In the ensuing months, GlaxoSmithKline officials conceded that they had known of the drug’s potential heart attack risks since at least 2005. But the latest documents demonstrate that the company had data hinting at Avandia’s extensive heart problems almost as soon as the drug was introduced in 1999, and sought intensively to keep those risks from becoming public.
Note: For lots more on corporate corruption from major media sources, click here.
This is the story of how some of the richest people in the world – Goldman, Deutsche Bank, the traders at Merrill Lynch, and more – have caused the starvation of some of the poorest people in the world. At the end of 2006, food prices across the world started to rise, suddenly and stratospherically. Within a year, the price of wheat had shot up by 80 per cent, maize by 90 per cent, rice by 320 per cent. In a global jolt of hunger, 200 million people – mostly children – couldn't afford to get food any more, and sank into malnutrition or starvation. There were riots in more than 30 countries, and at least one government was violently overthrown. Then, in spring 2008, prices just as mysteriously fell back to their previous level. Jean Ziegler, the UN Special Rapporteur on the Right to Food, calls it "a silent mass murder", entirely due to "man-made actions." Through the 1990s, Goldman Sachs and others lobbied hard and the regulations [controlling agricultural futures contracts] were abolished. Suddenly, these contracts were turned into "derivatives" that could be bought and sold among traders who had nothing to do with agriculture. A market in "food speculation" was born. The speculators drove the price through the roof.
Note: Some researchers speculate that the global elite are aware that alternative energies will eventually replace oil, which has been a prime means of control and underlying cause of many wars in recent decades. So as a replacement for oil, the elite and their secret societies are increasingly targeting control of the world's food supply through terminator crops which produce no seed, and through the patenting of seeds.
Employees of the federal agency that regulates offshore drilling accepted lunches, football tickets, hunting trips and other gifts from the oil and gas companies they were in charge of policing, according to a report [on May 25] by the Interior Department's inspector general. The investigation, which zeroed in on the Lake Charles, La., office of the embattled Minerals Management Service, also found that at least one agency inspector also was actively negotiating employment with an oil and gas production company while simultaneously inspecting its platforms in the Gulf of Mexico. The oil spill in the gulf has focused intense scrutiny on the agency's oversight of offshore drilling and raised questions about whether it was lax in setting requirements for key safety devices and practices. But even before the spill, the agency had been singled out for ethical lapses and mismanagement. In 2008, the Interior Department's inspector general rapped workers in MMS' Lakewood, Colo., office for having sexual relationships with and accepting gifts from energy company representatives. Over a decade, there have been ten inspector general reports and nine from the Government Accountability Office that documented "failures within MMS," [Rep. Darrell Issa] said, "and yet it still took a massive catastrophe to get anyone to ... agree on the need for a massive bureaucratic overhaul."
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.
If you eat meat, the odds are high that you've enjoyed a meal made from an animal raised on a factory farm. The government designation is CAFO, which stands for Concentrated Animal Feeding Operation. Basically, it's any farm that has 1,000 animal units or more. A beef cow is an animal unit. These animals are kept in pens their entire lives. They're never outside. They never breathe fresh air. They never see the sun. According to the USDA, 2% of U.S. livestock facilities raise an estimated 40% of all farm animals. This means that pigs, chickens and cows are concentrated in a small number of very large farms. There are simply too many animals in too small of a place. CAFO cows eat a diet of milled grains, corn and soybeans, when they are supposed to eat grass. The food isn't natural because they very often put growth hormones and antibiotics in it. When you have 2,000 cows per acre instead of two, you have a problem. You can't fit them in a pasture — you fit them in a building. You don't have enough land to absorb their waste. The manure is liquefied. It gets flushed out into an open lagoon [and] sprayed into waterways and creeks. This stuff is untreated, by the way.
Note: For two excellent and fun short videos showing both the problem and solutions for cruel factory farming, click here and here. For lots more little-known, excellent information to promote your health, click here.
Remember the warnings of 65,000 dead? Health chiefs should admit they were wrong – yet again – about a global pandemic. Let me recap. Six months ago [the] BBC was intoning nightly statistics on what "could" happen as "the deadly virus" took hold. The happy-go-lucky virologist, John Oxford, said half the population could be infected, and that his lowest estimate was 6,000 dead. The chief medical officer, Sir Liam Donaldson, bandied about any figure that came into his head, settling on "65,000 could die", peaking at 350 corpses a day. The media went berserk. The World Health Organisation declared a "six-level alert" so as to "prepare the world for an imminent attack". If anyone dared question this drivel, they were dismissed by Donaldson as "extremists". When people started reporting swine flu to be even milder than ordinary flu, he accused them of complacency and told them to "wait for next winter". He was already buying 32m masks and spending more than Ł1bn on Tamiflu and vaccines. It was pure, systematic government-induced panic – in which I accept that the media played its joyful part.
Note: For lots more on the gross profiteering and fear mongering of swine flu scare, click here.
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.
U.S. lenders saw loans fall by the largest amount since the government began tracking such data, suggesting that nervousness among banks continues to hamper economic recovery. Total loan balances fell by $210.4 billion, or 3%, in the third quarter, the biggest decline since data collection began in 1984, according to a report released ... by the Federal Deposit Insurance Corp. The FDIC also said its fund to backstop deposits fell into negative territory for just the second time in its history, pushed down by a wave of bank failures. The decline in total loans showed how banks remain reluctant to lend, despite the hundreds of billions of dollars the government has spent to prop up ailing banks and jump-start lending. The issue has taken on greater urgency with the U.S. unemployment rate hitting 10.2% in October. "There is no question that credit availability is an important issue for the economic recovery," FDIC Chairman Sheila Bair told reporters Tuesday. "We need to see banks making more loans to their business customers." She said large banks -- which account for 56% of industry assets and received a large share of the government's bailout funds -- accounted for 75% of the decline.
Note: The big banks were given trillions in bailout funds with a mandate to increase loans and stimulate the economy. Why are they still giving out so few loans? Where did the huge amounts of our taxpayer money go? Why isn't the government demanding accountability with such huge sums of taxpayer money? For lots more on major manipulations by the big bankers, click here.
What really happens behind the padlocked doors of this windowless building, [the home] of Skull and Bones, Yale's oldest secret society? Its members include some of America's most powerful and privileged elite all sworn to secrecy. [CAMPBELL] BROWN: Alexandra Robbins broke through the wall of silence to write Secrets of the Tomb based on clandestine interviews with dozens of bonesmen. Only 15 [Yale students] get picked each year. The society includes at least three U.S. presidents, Supreme Court justices, and too many senators and CEOs to name. In 2004, Bush versus Kerry was the first all-bonesmen presidential election. ALEXANDRA ROBBINS: Skull and Bones' only purpose is to get its members into positions of prominence around the world so that they can elevate other members to similar positions. One of the first activities they participate in is called connubial bliss, where ... each member must spend an evening standing in front of the other 14 bonesmen and recount his or her entire sexual and romantic history. BROWN: According to one ... story, Prescott Bush, George W. Bush's grandfather, was part of a group that broke into the Oklahoma burial place of the Apache chief Geronimo and made off with his skull. Geronimo's grave was disturbed back in 1918, there are photos of skulls inside the "Skull and Bones" tomb. They have their own private retreat. Deer Island off the coast of New York. And a world of ready investors and political contacts in the highest echelons of American society. What has kept the secret society alive for all these years? Good old fashioned networking for the super elite.
Note: To watch the CNN video clip on this Yale secret society, click here. For lots more powerful information on Skull and Bones and other secret societies reported in major media articles, click here.
Its superfast, supersecret oil trading software was called the Hammer. And if the Commodity Futures Trading Commission is right, the name fit well with an intricate scheme that allowed commodity traders in Chicago working for Optiver, a little-known company based in Amsterdam, to put their orders first in line and subtly manipulate the price of oil to the company’s advantage. Transcripts and taped conversations of actions that took place in 2007 ... reveal the secretive workings of high-frequency trading, a fast-growing Wall Street business. Critics say this high-speed form of computerized trading, which is used in a wide range of financial markets, enables its practitioners to profit at other investors’ expense. Traders in the Chicago office of Optiver openly talked among themselves of “whacking” and “bullying up” the price of oil. But when called to account by officials of the New York Mercantile Exchange, they described their actions as just “providing liquidity.” In July 2008, the commission charged Optiver with manipulating the price of oil; negotiations over a settlement continue. The Securities and Exchange Commission has opened up an investigation into high-speed-trading practices, in particular the ability of some of the most powerful computers to jump to the head of the trading queue and — in a fraction of a millisecond — capture the evanescent trading spread before the rest of the market does.
Note: This and other reports likely show only the tip of the iceberg of how prices of key stocks and commodities are manipulated. For a great collection of reports from major media sources on the schemes and tricks used by financial corporations, click here.
Frustrated Americans have long complained that their insurance companies valued the all-mighty buck over their health care. Today, a retired insurance executive confirmed their suspicions, arguing that the industry that once employed him regularly rips off its policyholders. "[T]hey confuse their customers and dump the sick, all so they can satisfy their Wall Street investors," former Cigna senior executive Wendell Potter said during a hearing on health insurance today before the Senate Committee on Commerce, Science, and Transportation. Potter, who has more than 20 years of experience working in public relations for insurance companies Cigna and Humana, said companies routinely drop seriously ill policyholders so they can meet "Wall Street's relentless profit expectations." "They look carefully to see if a sick policyholder may have omitted a minor illness, a pre-existing condition, when applying for coverage, and then they use that as justification to cancel the policy, even if the enrollee has never missed a premium payment," Potter said. Small businesses, in particular, he said, have had trouble maintaining their employee health insurance coverage, he said. "All it takes is one illness or accident among employees at a small business to prompt an insurance company to hike the next year's premiums so high that the employer has to cut benefits, shop for another carrier, or stop offering coverage altogether," he said. More and more people, he said, are falling victim to "deceptive marketing practices" that encourage them to buy "what essentially is fake insurance," policies with high costs but surprisingly limited benefits.
Note: For lots more on corruption in the health industry, click here.
A fascinating court case in Australia has been playing out around some people who had heart attacks after taking the Merck drug, Vioxx. This medication turned out to increase the risk of heart attacks in people taking it, although that finding was arguably buried in their research, and Merck has paid out more than Ł2bn to 44,000 people in America. The first ... thing to emerge in the Australian case is email documentation showing staff at Merck made a "hit list" of doctors who were critical of the company, or of the drug. This list contained words such as "neutralise", "neutralised" and "discredit" next to the names of various doctors. "We may need to seek them out and destroy them where they live," said one email, from a Merck employee. Staff are also alleged to have used other tactics, such as trying to interfere with academic appointments, and dropping hints about how funding to institutions might dry up. Worse still, is the revelation that Merck paid the publisher Elsevier to produce a publication. This time Elsevier Australia went the whole hog, giving Merck an entire publication which resembled an academic journal, although in fact it only contained reprinted articles, or summaries, of other articles.
Note: For a superb overview of corruption in the pharmaceutical industry by a leading MD and former medical journal editor, click here.
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