Government Corruption Media ArticlesExcerpts of Key Government Corruption Media Articles in Major Media
Note: Explore our full index to revealing excerpts of key major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.
The US government is seeking to unmask every person who visited an anti-Trump website in what privacy advocates say is an unconstitutional “fishing expedition” for political dissidents. The warrant appears to be an escalation of the Department of Justice’s (DoJ) campaign against anti-Trump activities, including the harsh prosecution of inauguration day protesters. On 17 July, the DoJ served a website-hosting company, DreamHost, with a search warrant for every piece of information it possessed that was related to a website that was used to coordinate protests during Donald Trump’s inauguration. The warrant ... seeks to get the IP addresses of 1.3 million people who visited [the site], as well as the date and time of their visit and information about what browser or operating system they used. The warrant was made public Monday, when DreamHost announced its plans to challenge the government in court. The government has aggressively prosecuted activists arrested during the 20 January protests in Washington DC. In April, the US attorney’s office in Washington DC filed a single indictment charging more than 217 people with identical crimes, including felony rioting. The Electronic Frontier Foundation, which has been advising DreamHost, characterized the warrant as “unconstitutional”. “I can’t conceive of a legitimate justification other than casting your net as broadly as possible,” senior staff attorney Mark Rumold [said]. “What they would be getting is a list of everyone who has ever been interested in attending these protests.”
Note: In May, United Nations officials said that the US treatment of activists was increasingly "incompatible with US obligations under international human rights law". For more along these lines, see concise summaries of deeply revealing news articles on government corruption and the erosion of privacy.
Why do Americans continue to pay the highest prices for medicine in the world? Lawmakers have sculpted specific policies, often not found in many other nations, that boost pharmaceutical industry profits. Meanwhile, the drug industry has spent $61 million on state elections and nearly $67 million on federal elections since 2010. Both parties have made pivotal decisions ... that have kept drug prices high. Insurance companies and pharmacy benefit managers, or PBMs, across the U.S., face at least nine class-action lawsuits alleging they attached arbitrary premiums to the prices of often less-expensive, generic prescription drugs. The plaintiffs also accuse the PBMs and insurers of imposing so-called “gag clauses” on pharmacies to keep pharmacists from telling consumers that they could save money by paying out of pocket. The system could be denying customers $120 billion in discounts and rebates. Should drugs developed at taxpayer expense be sold to Americans at sky high prices? In the past, the federal government passed a rule saying no — but that rule was rescinded in 1995. If Americans were allowed to import lower-priced drugs from places like Canada, it would save government agencies alone $6 billion. But ... Americans are still prohibited from engaging in such importation. The federal government could [also] save billions of dollars a year by having Medicare use its huge market power to negotiate - or require - lower drug prices for the program's beneficiaries.
A loud boom cut through the night and a stream of fire lit up the sky. A strong, unpleasant odor settled over the street. None of the neighbors reported what happened that night - nor the ... symptoms that followed. For [Joseph] Gaines, the symptoms included an intense sudden headache, tearing eyes, a runny nose, and congestion. A block and a half from Gaines’s house, the street ends in an Exxon Mobil refinery that ... releases at least 135 toxic chemicals, many of which - including 1,3-butadiene, benzo[a]pyrene, and styrene - are carcinogens. The plant is regularly in noncompliance with the Clean Air Act. Yet many of the people [in] Charlton-Pollard said they felt there was no point in trying to reduce the emissions. They raised [their concerns] in a formal complaint to the Environmental Protection Agency 17 years ago. The filing [described] the chemical pollution. And the complaint went further, arguing that the location of the oil refinery - next to a neighborhood where 95 percent of residents were African-American - was a civil rights violation. The majority of civil rights complaints the EPA accepted for investigation between 1996 and 2013 languished for years. As the people of Charlton-Pollard and Flint — as well as Tallassee, Alabama; Pittsburg, California; and Chaves County, New Mexico — can attest, the EPA’s lack of responsiveness to civil rights complaints spans not just many years, but also several presidential administrations. While pollution protections are moving backward, Exxon Mobil is planning to expand its Beaumont operations.
A U.S. contractor bilked the American military out of $50 million spent on Bentleys, Aston Martins and big salaries for senior staffers’ significant others, according to a government audit. Senator Claire McCaskill demanded on Wednesday that the Pentagon explain why it was allowed to get away with it. The British company New Century Consulting (NCC) was deployed by the U.S. overseas to train Afghanistan forces. It was originally subcontracted by the now-defunct company Imperitas from 2008 to 2013 but has since taken over the contract completely. Under Imperitas, NCC ... paid the significant others of senior staff an average of $420,000 as “executive assistants” who worked from home, auditors found. It’s not clear whether Imperitas or NCC actually completed their work in Afghanistan, as neither retained complete training records. In a letter to Secretary of Defense James Mattis Wednesday, McCaskill ... wrote that “NCC was unable to provide evidence that these executive assistants actually performed any work.” This is not the first time that NCC or Imperitas spending has been questioned or the companies investigated. In 2016, a federal lawsuit was brought in New York by investors against Imperitas. In 2015, the special inspector general for Afghanistan reconstruction had an ongoing criminal investigation open against both NCC and Imperitas. And in 2012, two former employees of Imperitas ... sued the company, alleging their co-workers abused alcohol and drugs and possessed illegal weapons—all violations of U.S. policy.
As the U.S. growing season entered its peak this summer, farmers began posting startling pictures on social media: fields of beans, peach orchards and vegetable gardens withering away. The photographs served as early warnings of a crisis that has damaged millions of acres of farmland. New versions of the herbicide dicamba developed by Monsanto and BASF, according to farmers, have drifted across fields to crops unable to withstand it. As the crisis intensifies, new details provided to Reuters ... demonstrate the unusual way Monsanto introduced its product. The approach, in which Monsanto prevented key independent testing of its product, went unchallenged by the Environmental Protection Agency and nearly every state regulator. Typically, when a company develops a new agricultural product, it commissions its own tests and shares the results and data with regulators. It also provides product samples to universities for additional scrutiny. In this case, Monsanto denied requests by university researchers to study its XtendiMax with VaporGrip for volatility - a measure of its tendency to vaporize and drift across fields. Monsanto provided samples of XtendiMax before it was approved by the EPA. However, the samples came with contracts that explicitly forbade volatility testing. Arkansas blocked Monsanto’s product because of the lack of extra volatility testing ... but approved BASF’s [product]. Thirty-three other states - every other state where the products were marketed - approved both products.
Note: A new project called "The Poison Papers" lays out a 40-year history of deceit and collusion involving the chemical industry and the regulatory agencies that were supposed to be protecting human health and the environment. For more along these lines, see concise summaries of deeply revealing food system corruption news articles from reliable major media sources.
The White House is actively considering a bold plan to turn over a big chunk of the U.S. war in Afghanistan to private contractors. Under the proposal, 5,500 private contractors, primarily former Special Operations troops, would advise Afghan combat forces. The plan also includes a 90-plane private air force that would provide air support in the nearly 16-year-old war against Taliban insurgents, Erik Prince, founder of the Blackwater security firm, [said]. The U.S. military has 8,400 U.S. troops [in Afghanistan]. They do not have a direct combat role, and presumably would be replaced gradually by the contractors. The plan remains under serious consideration within the White House despite misgivings by Trump's national security adviser ... and Defense Secretary Jim Mattis. Prince, who has met frequently with administration officials to discuss his plan, is the brother of Trump's education secretary, Betsy Devos. Prince said the contractors would be “adjuncts” of the Afghan military and would wear that nation’s military uniforms. Currently, troops from a U.S.-led coalition ... are not embedded with conventional combat units in the field. Under the plan the contractors would be embedded with Afghanistan's more than 90 combat battalions throughout the country. Blackwater has attracted controversy under Prince's leadership. In 2007, four Blackwater security personnel were accused of killing 14 Iraqi civilians in Baghdad.
Note: When Blackwater changed its name to Academi, the US paid $309 million to this company to conduct counternarcotics operations in Afghanistan. These operations reportedly contributed to the Afghan opium boom. For more along these lines, see concise summaries of deeply revealing news articles on corporate corruption and war.
Martin Shkreli - famously known as the guy that jacked up the price of a lifesaving AIDS treatment by 5,000% - finally saw his day in court, albeit for a completely unrelated case involving an unrelated company. The trial ... found Shkreli guilty of three counts of fraud for essentially lying to his investors about how he would invest their money and when they would be paid back. The conviction, carrying a potential 20 years in prison, is no joke. Yet the notorious self-promoter took the opportunity to ... let the world know he wasn’t fazed. And why should he be? How Shkreli got rich in the first place remains not just legal but celebrated. The real crime of the Pharma Bro is the unrepentant greed that drives him, as well as the industry he’s thrived in. Sen. Bernie Sanders has attempted to put a stop to this greed with recently introduced legislation to cap prices for pharmaceuticals developed by government-funded research. Far from a new idea, Sanders has been pushing for a bill like this for decades. While raising the price of a life-saving drug by 5,000% rightfully drew the scorn of millions of people, price gouging is all too common for the industry. Take the EpiPen, the lifesaving device for kids and adults with severe allergies, whose price was famously hiked up over 500% ... after it was acquired by Mylan. Laws that protect investors in these companies are what landed Shkreli in court. Yet until there are laws to protect patients from drug company extortion, like the one proposed by Sanders, the line of Pharma Bros ready to take his place is already queued up.
Fossil fuels are expensive. Much of their costs are hidden, however, as subsidies. If people knew how large their subsidies were, there would be a backlash against them from so-called financial conservatives. A study was just published in the journal World Development that quantifies the amount of subsidies directed toward fossil fuels globally, and the results are shocking. The authors work at the IMF and are well-skilled to quantify the subsidies discussed in the paper. The subsidies were $4.9 tn in 2013 and they rose to $5.3 tn just two years later. According to the authors, these subsidies are important because first, they promote fossil fuel use which damages the environment. Second, these are fiscally costly. Third, the subsidies discourage investments in energy efficiency and renewable energy that compete with the subsidized fossil fuels. Finally, subsidies are very inefficient means to support low-income households. With these truths made plain, why haven’t subsidies been eliminated? We are talking enormous values of 5.8% of global GDP in 2011, rising to 6.5% in 2013. Petroleum and coal receive much larger subsidies compared to their counterpart fuels. There are two key takeaway messages. First, fossil fuel subsidies are enormous and they are costs that we all pay, in one form or another. Second, the subsidies persist in part because we don’t fully appreciate their size. These two facts, taken together, further strengthen the case to be made for clean and renewable energy.
Note: Even competing with such heavily subsidized fossil fuels, the solar power industry in the US now employs more workers than the coal, oil and natural gas industries combined. For more along these lines, see concise summaries of deeply revealing energy news articles from reliable major media sources.
The House Appropriations Committee’s voice vote on June 29, to approve an amendment repealing the 2001 Authorization for the Use of Military Force, came as a surprise to congressional leaders; reporters on Capitol Hill; and the amendment’s sponsor, Rep. Barbara Lee. The AUMF is the controversial legal authority under which most U.S. counterterrorism activities are conducted. Lee has been on a mission to repeal it since Sept. 14, 2001, when she cast the one and only vote in Congress against the original authorization. In the 16 years that followed, Lee has sponsored numerous bills ... intended to overturn the authorization, to no avail. The vote in June, the first time a congressional committee had passed an AUMF repeal, showed that she’s finally no longer alone in believing that the authorization she describes as a “blank check” is no good. In the end, the House Rules Committee stripped Lee’s amendment out of the bill. History has vindicated many of Lee’s concerns about the AUMF: It has, as she warned, dramatically expanded the president’s power to use military force, reduced congressional oversight, and vastly grown the U.S. military footprint around the world with no end in sight to the escalation. The measure includes no time or geographic distinctions, and three presidential administrations have taken full advantage of that ambiguity. A 2016 Congressional Research Service report found that the AUMF’s authority had been invoked 37 times for operations in 14 countries.
Attorney General Jeff Sessions said Friday that the Justice Department has more than tripled the number of leak investigations compared with the number that were ongoing at the end of the last administration. Sessions said he was devoting more resources to stamping out unauthorized disclosures, directing Deputy Attorney General Rod J. Rosenstein and FBI Director Christopher A. Wray to actively monitor every investigation, instructing the department’s national security division and U.S. attorneys to prioritize such cases, and creating a new counterintelligence unit in the FBI to manage the work. Sessions also said he was reviewing the Justice Department’s policy on issuing subpoenas to reporters. Rosenstein refused to rule out the possibility that journalists would be prosecuted. It has long been Justice Department practice in leak probes to try to avoid investigating journalists directly to find their sources. Prosecutors in the Obama era brought nine leak cases, more than during all previous administrations combined, and in the process called a reporter a criminal “co-conspirator” and secretly went after journalists’ phone records in a bid to identify reporters’ sources. Danielle Brian, executive director at the Project on Government Oversight, said leak investigations might inappropriately target well-intentioned whistleblowers. “Whistleblowers are the nation’s first line of defense against fraud, waste, abuse, and illegality within the federal government,” Brian said in a statement.
A former chief investigator at the Guantanamo Bay detention center is accusing the Pentagon of blocking publication of his book on the use of brutal interrogation techniques and top U.S. officials' advocacy of what he calls "torture." Mark Fallon, a Naval Criminal Investigative Service (NCIS) veteran, said his book "Unjustifiable Means" reveals no classified information or new detainee abuse cases but details internal deliberations about interrogation methods, identifies officials who advocated "torture" and describes how he and others objected. "This is more of an inside view of the fight to try to stop torture," he said. "There was a tremendous opposition within the government itself believing these were war crimes, and I name names." The use of the brutal interrogation methods made the country less safe, he said. Fallon said that he was told it would take no more than six weeks for the Defense Department office that scrubs manuscripts for unauthorized information to review his book. That was more than seven months ago. He has since missed his submission deadline, had to cancel a book tour and enlisted the American Civil Liberties Union and Columbia University's Knight First Amendment Institute to fight what he contends is a Pentagon effort to suppress his work and stifle his right to free speech. Now the ACLU and the Columbia University institute are taking Fallon's case to Congress.
Note: For more along these lines, see the "10 Craziest Things in the Senate Report on Torture". For more, see concise summaries of deeply revealing news articles about corruption in government and in the intelligence community.
Early last month, the C.I.A. director, Mike Pompeo, recommended to President Trump that he shut down a four-year-old effort to arm and train Syrian rebels. The president swiftly ended the program. The rebel army was by then a shell, hollowed out by more than a year of bombing by Russian planes. Critics in Congress had complained for years about the costs - more than $1 billion over the life of the program - and reports that some of the C.I.A.-supplied weapons had ended up in the hands of a rebel group tied to Al Qaeda further sapped political support for the program. President Barack Obama ... agreed to the program in 2013. It soon fell victim to the constantly shifting alliances in Syria’s six-year-old civil war. Once C.I.A.-trained fighters crossed into Syria, C.I.A. officers had difficulty controlling them. The fact that some of their C.I.A. weapons ended up with Nusra Front fighters - and that some of the rebels joined the group - confirmed the fears of many in the Obama administration when the program began. Although the Nusra Front was widely seen as an effective fighting force against [President Bashar al-Assad]’s troops, its Qaeda affiliation made it impossible for the Obama administration to provide direct support for the group. American intelligence officials estimate that the Nusra Front now has as many as 20,000 fighters in Syria, making it Al Qaeda’s largest affiliate. Officials also received ... reports that the C.I.A.-trained rebels had summarily executed prisoners and committed other violations of the rules of armed conflict.
Documents released Tuesday in a lawsuit against Monsanto raised new questions about the company’s efforts to influence the news media and scientific research and revealed internal debate over the safety of its highest-profile product, the weed killer Roundup. The active ingredient in Roundup, glyphosate, is the most common weed killer in the world. The documents underscore the lengths to which the agrochemical company goes to protect its image. Documents show that Henry I. Miller ... a vocal proponent of genetically modified crops, asked Monsanto to draft an article for him that largely mirrored one that appeared under his name on Forbes’s website in 2015. An academic involved in writing research funded by Monsanto, John Acquavella, [wrote] in a 2015 email to a Monsanto executive, “I can’t be part of deceptive authorship on a presentation or publication.” He also said of the way the company was trying to present the authorship: “We call that ghost writing and it is unethical.” Mr. Miller’s 2015 article on Forbes’s website was an attack on the findings of ... a branch of the World Health Organization that had labeled glyphosate a probable carcinogen. The documents also show that A. Wallace Hayes, the former editor of a journal, Food and Chemical Toxicology, has had a contractual relationship with Monsanto. In 2013, while he was still editor, Mr. Hayes retracted a key study damaging to Monsanto that found that Roundup, and genetically modified corn, could cause cancer and early death in rats.
Secretary of State Rex Tillerson has ordered his department to redefine its mission and issue a new statement of purpose to the world. The draft statements under review right now are similar to the old mission statement, except for one thing - any mention of promoting democracy is being eliminated. Former senior State Department officials from both parties told me that eliminating “just” and “democratic” from the State Department’s list of desired outcomes is neither accidental nor inconsequential. “The only significant difference is the deletion of justice and democracy,” said Elliott Abrams, who served as deputy national security adviser for global democracy strategy during the George W. Bush administration. “We used to want a just and democratic world, and now apparently we don’t.” The change, if it becomes permanent, would sow confusion throughout the ranks of the State Department’s civil and foreign service because hundreds of State Department officials work on congressionally funded programs every day that are meant to promote democracy and justice abroad. Tillerson has made several statements and decisions that indicate he plans to lower the priority of democracy and human rights in U.S. foreign policy. In his first speech to his State Department employees, he said promoting American values “creates obstacles” to pursuing America’s national security interests. In March, he broke tradition by declining to appear personally to unveil the State Department’s annual human rights report.
Note: The US State Department under Rex Tillerson also recently moved to shut down a decades-old office designed to seek justice for victims of war crimes. For more along these lines, see concise summaries of deeply revealing government corruption news articles from reliable major media sources.
In the summer of 2012, a subcommittee of the U.S. Senate released a report. [After] looking into the London-based banking group HSBC, [investigators] discovered that ... the bank had laundered billions of dollars for Mexican drug cartels, and violated sanctions. No criminal charges were filed, and no executives or employees were prosecuted. Instead, HSBC pledged to clean up its institutional culture, and to pay a fine of nearly two billion dollars: the equivalent of four weeks’ profit for the bank. In the years since the mortgage crisis of 2008 ... corporate executives have essentially been granted immunity. As recently as 2006, when Enron imploded, such titans as Jeffrey Skilling and Kenneth Lay were convicted of conspiracy and fraud. Something has changed in the past decade, however, and federal prosecutions of white-collar crime are now at a twenty-year low. As Jesse Eisinger, a reporter for ProPublica, explains in a new book ... a financial crisis has traditionally been followed by a legal crackdown, because a market contraction reveals all the wishful accounting and outright fraud that were hidden when the going was good. After the mortgage crisis, people in Washington and on Wall Street expected prosecutions. Eisinger reels off a list of potential candidates for criminal charges: Countrywide, Washington Mutual, Lehman Brothers, Citigroup, A.I.G., Bank of America, Merrill Lynch, Morgan Stanley. Although fines were paid ... there were no indictments, no trials, no jail time.
Allowing Americans to purchase lower-priced medicines from other countries would save the federal government alone more than $6 billion, according to a new analysis from the Congressional Budget Office. Under existing law, drugmakers are permitted to produce pharmaceuticals abroad and then import them into the United States, where ... they charge Americans the highest prices for medicines in the world. However, while drugmakers themselves are allowed to import medicines, current law prohibits U.S. consumers and pharmaceutical wholesalers from doing so, even when the same medicines are sold at much lower prices abroad. Spending millions on campaign donations and lobbying, the pharmaceutical industry has for years successfully fought off legislation to end the prohibition. This year — nearly 17 years after President Bill Clinton’s administration killed ... drug importation legislation — the importation initiative has once again been renewed. Looking to take advantage of President Donald Trump’s promise to lower drug prices, Vermont Sen. Bernie Sanders ... introduced the Affordable and Safe Prescription Drug Importation Act on Feb. 28. Overall, campaign spending by the pharmaceutical industry is skyrocketing. Congressional donations from pharmaceutical PACs are up 11 percent as compared with a similar time frame in 2015, and donations to ranking members of health-related committees have risen by 80 percent from two years ago. Lobbying is also on the rise, according to a Kaiser Health News analysis.
Contaminants detected in water samples throughout the country pose health risks but are perfectly legal. “Most people turn on their tap water and think: It’s clear, I live in America, we have these laws, I’m being protected,” said Nneka Leiba, director of the Healthy Living Science Program for the Environmental Working Group (EWG). In 1974, Congress enacted the Safe Drinking Water Act, authorizing the Environmental Protection Agency (EPA) to set national standards for drinking water. However, it has been more than 20 years since the EPA has added a new contaminant to its list of regulated drinking water pollutants. “The list of regulated chemicals has not kept up with our use of chemicals as a country,” Leiba said. EWG collected data from drinking water tests ... at more than 48,000 water facilities throughout the U.S., looking for 500 unique contaminants. The group found 267 present in water supplies, many at levels above what scientific studies have found pose health risks but are still legal under the Safe Drinking Water Act. EWG's findings: 93 of the contaminants were linked to an increased risk of cancer; 78 were associated with brain and nervous system damage; 63 were connected to developmental harm in children or fetuses; 38 were contaminants that could cause fertility issues; and 45 were endocrine disruptors. More than 40,000 water systems had levels of known or likely carcinogens that exceeded health guidelines.
Note: EWG has made its data available in the form of a public database. Due to systematic distortion of water quality tests by US authorities, up to 98 million Americans may have unsafe levels of lead in their drinking water. For more along these lines, see concise summaries of deeply revealing health news articles from reliable major media sources.
For decades, some of the dirtiest, darkest secrets of the chemical industry have been kept in Carol Van Strum’s barn. The ... structure in rural Oregon housed more than 100,000 pages of documents obtained through legal discovery in lawsuits against Dow, Monsanto, the Environmental Protection Agency, the U.S. Forest Service, the Air Force, and pulp and paper companies, among others. As of today, those documents and others ... will be publicly available through a project called the Poison Papers. The library contains more than 200,000 pages of information and “lays out a 40-year history of deceit and collusion involving the chemical industry and the regulatory agencies that were supposed to be protecting human health and the environment,” said Peter von Stackelberg, a journalist who along with the Center for Media and Democracy and the Bioscience Resource Project helped put the collection online. Van Strum didn’t set out to be the repository for the people’s pushback against the chemical industry. But [in 1974] she realized the Forest Service was spraying her area with an herbicide called 2,4,5-T. The chemicals hurt people and animals. Residents ... filed a suit that led to a temporary ban on 2,4,5-T in their area in 1977 and, ultimately, to a total stop to the use of the chemical in 1983. For Van Strum, the suit was also the beginning of lifetime of battling the chemical industry. “We didn’t think of ourselves as environmentalists, that wasn’t even a word back then,” Van Strum said. “We just didn’t want to be poisoned.”
Note: The herbicide 2,4,5-T is a main ingredient of Agent Orange. As recently as 2012, Monsanto, a manufacturer of Agent Orange, agreed to pay $93 million to settle claims of this poison's pollution of a US town. For more along these lines, see concise summaries of deeply revealing news articles on corporate corruption and health.
Officials seized Trump protesters’ cell phones, cracked their passwords, and are now attempting to use the contents to convict them of conspiracy to riot at the presidential inauguration. Prosecutors have indicted over 200 people on felony riot charges for protests in Washington, D.C. on January 20. Some defendants face up to 75 years in prison. Evidence against the defendants has been scant from the moment of their arrest. As demonstrators, journalists, and observers marched through the city, D.C. police officers channelled hundreds of people into a narrow, blockaded corner, where they carried out mass arrests. Some of those people ... are now suing for wrongful arrest. Police also seized more than 100 cell phones. All of the ... phones were locked. But a July 21 court document shows that investigators were successful in opening the locked phones. Prosecutors moved to use a wealth of information from the phones as evidence, including the phones’ “call detail records,” “SMS or MMS messages,” “contact logs/email logs,” “chats or other messaging applications,” “website search history and website history,” and “images or videos.” One of the more than 200 defendants has pleaded guilty to riot charges after being named extensively in a superseding indictment. But the case against most defendants is less clear; in the superseding indictment, prosecutors accuse hundreds defendants of conspiracy to riot, based on “overt acts” as banal as chanting anti-capitalist slogans or wearing dark clothing.
Note: In May, United Nations officials said that the US treatment of activists was increasingly "incompatible with US obligations under international human rights law". For more along these lines, see concise summaries of deeply revealing news articles on government corruption and the erosion of civil liberties.
In August 2012, [the US] unilaterally changed the terms of the bailout of Fannie Mae and Freddie Mac. The government originally insisted on a 10 percent annual dividend in exchange for what ultimately became a $187 billion rescue. In 2012, the government quietly changed that 10 percent deal to one in which the state simply seized all profits. The press paid almost no attention to this event, [even though] it was one of the most important decisions of the bailout era. Fannie Mae and Freddie Mac were two of the biggest companies on earth, and held about $5 trillion in mortgage debt. They had gone bust during the crash years. But by the summer of 2012 ... they were about to start making [enormous piles of] money again. The government has always insisted it didn't know this. Officials have insisted that they needed 100 percent of Fannie and Freddie's profits because ... Fannie and Freddie would otherwise be unable to pay back what they owed. But documents just released in a court case show that the government privately believed just the opposite before it made its historic decision. [One key document] concluded that the government would end up getting more through the "revenue sweep" than it would ... if "the 10% [dividend] was still in effect." The documents that came out this week were released in a lawsuit brought by Fannie and Freddie shareholders who believe that the government stole billions of dollars in profits from them.
Important Note: Explore our full index to revealing excerpts of key major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.