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.
Former CIA officer John Kiriakou is the only CIA employee connected to its interrogation program to go to prison. But he was prosecuted for providing information to reporters, not for anything connected to ... “torture.” No other person connected to the program has been charged with a crime, after the Justice Department said their actions had been approved legally or that there was not sufficient admissible evidence in a couple cases of potential wrongdoing, even in light of the death of two detainees in the early 2000s. Kiriakou was the first person with direct knowledge of the CIA interrogation program to publicly reveal its existence, in an interview with ABC News in 2007. He is now serving a nearly-three-year prison sentence for violating the Intelligence Identities Protection Act, but he says that’s only what the government wants people to believe. “In truth, this is my punishment for blowing the whistle on the CIA’s illegal torture program and for telling the public that torture was official U.S. government policy,” Kiriakou said in a letter last May from a prison in Loretto, Penn. In his groundbreaking interview with ABC News and later with other news outlets, Kiriakou described the details of the program. In some cases, it turned out that even Kiriakou ... was misled or kept in the dark about the extent of the program.
Note: For more along these lines, see concise summaries of deeply revealing stories about questionable intelligence agency practices from reliable sources.
Months before the operation that killed Osama bin Laden in 2011, the Central Intelligence Agency secretly prepared a public-relations plan that would stress that information gathered from its disputed interrogation program had played a critical role in the hunt. Starting the day after the raid, agency officials in classified briefings made that point to Congress. But in page after page of previously classified evidence, the Senate Intelligence Committee report on C.I.A. torture, released Tuesday, rejects the notion that torturing detainees contributed to finding Bin Laden. The crucial breakthrough in the hunt was the identification of ... Abu Ahmed al-Kuwaiti. The United States had started wiretapping a phone number associated with Mr. Kuwaiti by late 2001. It was in 2004 that the C.I.A. came to realize that it should focus on finding Mr. Kuwaiti as part of the hunt for Bin Laden. [A man named] Hassan Ghul, who had been captured in Iraqi Kurdistan ... provided “the most accurate” intelligence that the agency produced about Mr. Kuwaiti’s role and ties to Bin Laden. Mr. Ghul provided all the important information about [Mr. Kuwaiti] before he was subjected to any torture techniques. During that [initial] two-day period in January 2004, “He opened up right away and was cooperative from the outset.” Nevertheless, the C.I.A. then decided to torture Mr. Ghul. During and after that treatment, he provided “no actionable threat information.”
Note: Read revealing excerpts from this most disturbing report.
Sen. Dianne Feinstein’s last act as chair of the Senate Intelligence Committee ... had Washington’s most powerful forces arrayed against her. At the end ... Feinstein said she was more determined than ever to release the summary of a 6,700-page report on the CIA’s use of torture after the terrorist attacks of Sept. 11, 2001. “She has been vilified, the committee was spied on, the CIA and its supporters ran what amounted to a domestic disinformation campaign against the report and the committee,” said Stephen Rickard, executive director of the Open Society Policy Center, a civil liberties and human rights group in Washington. “She did her job.” Her job was to provide congressional oversight of an executive branch agency, and she met prolonged and intense resistance. Feinstein called the report “the most significant and comprehensive oversight report in the committee’s history, and perhaps in that of the U.S. Senate.” The Senate panel examined nearly 6.3 million pages of documents, without Republican cooperation and against the resistance of the CIA, which went so far as to hack Intelligence Committee computers and threaten to bring criminal charges against the staff. Although President Obama insisted he wanted the report made public, administration officials reportedly pressed for redactions that Senate Democrats said would make the report meaningless.
Note: For more along these lines, see concise summaries of deeply revealing stories about questionable intelligence agency practices from reliable sources.
The end-of-year spending bill deal crafted by congressional leaders Tuesday would dramatically expand the amount of money that wealthy political donors could inject into the national parties, drastically undercutting the 2002 landmark McCain-Feingold campaign finance overhaul. The language – inserted on page 1,599 of the 1,603-page bill – would allow ... a donor who gave the maximum $32,400 this year to the Democratic National Committee or Republican National Committee ... to donate another $291,600 on top of that to the party’s additional arms -- a total of $324,000, ten times the current limit. In a two-year election cycle, a couple could give $1,296,000 to a party's various accounts. "These provisions have never been considered by the House or Senate, and were never even publicly mentioned before today," said Fred Wertheimer, president of the advocacy group Democracy 21. Adam Smith, spokesman for the group Every Voice, said in a statement, “Very few people can write checks almost twice the size of the country’s median income, but that’s what this provision will allow. It gives the biggest donors another opportunity to influence politics and buys them more access to politicians.” Campaign finance experts were taken aback by the scope of the measure, rumors of which first surfaced Tuesday, hours before the deal was finalized.
The U.S. Supreme Court building proclaims a high ideal: “Equal Justice Under Law.” But inside, an elite cadre of lawyers has emerged [to give] their clients a disproportionate chance to influence the law. A Reuters examination of nine years of cases shows that 66 of the 17,000 lawyers who petitioned the Supreme Court ... were at least six times more likely to be accepted by the court than were all others. About half [of these 66 lawyers] worked for justices past or present, and some socialize with them. Although they account for far less than 1 percent of lawyers who filed appeals to the Supreme Court, these attorneys were involved in 43 percent of the cases the high court chose to decide from 2004 through 2012. The Reuters examination of the Supreme Court’s docket, the most comprehensive ever, suggests ... a decided advantage for corporate America. Some legal experts contend that the reliance on a small cluster of specialists, most working on behalf of businesses, has turned the Supreme Court into an echo chamber – a place where an elite group of jurists embraces an elite group of lawyers who reinforce narrow views of how the law should be construed. Of the 66 most successful lawyers, 51 worked for law firms that primarily represented corporate interests. In cases pitting the interests of customers, employees or other individuals against those of companies, a leading attorney was three times more likely to launch an appeal for business than for an individual, Reuters found.
Note: How interesting that no major media seem to have picked up this revealing story. For more along these lines, see concise summaries of deeply revealing news articles about government corruption from reliable major media sources.
Attorneys general in at least a dozen states are working with energy companies and other corporate interests, which in turn are providing them with record amounts of money for their political campaigns, including at least $16 million this year. The Times reported previously how individual attorneys general have shut down investigations, changed policies or agreed to more corporate-friendly settlement terms [for] campaign benefactors. But the attorneys general are also working collectively. Out of public view, corporate representatives and attorneys general are coordinating legal strategy and other efforts to fight federal regulations, according to a review of thousands of emails and court documents and dozens of interviews. Attorney General Scott Pruitt of Oklahoma [used his post] to help start what he and allies called the Rule of Law campaign. That campaign, in which attorneys general band together to operate like a large national law firm, has been used to back lawsuits and other challenges against the Obama administration on environmental issues, the Affordable Care Act and securities regulation. The most recent target is the president’s executive action on immigration. Coordination between the corporations and teams of attorneys general involved in the Rule of Law effort also involves actual litigation to try to clear roadblocks to energy projects, documents show.
Note: For more along these lines, see concise summaries of deeply revealing government corruption news articles from reliable major media sources.
Eric Garner was not the first American to be choked by the police, and he will not be the last, thanks to legal rules that prevent victims of police violence from asking federal courts to help stop deadly practices. The 1983 case City of Los Angeles v. Lyons vividly illustrates the problem. That case also involved an African-American man choked by the police without provocation. Unlike Mr. Garner, Adolph Lyons survived. He then filed a federal lawsuit, asking the city to compensate him for his injuries. He also asked the court to prevent the Los Angeles Police Department from using chokeholds in the future. The trial court ordered the L.A.P.D. to stop using chokeholds. The Supreme Court overturned this order. The court explained that Mr. Lyons would have needed to prove that he personally was likely to be choked again in order for his lawsuit to be a vehicle for systemic reform. This is the legal standard when a plaintiff asks a federal court for an injunction — or a forward-looking legal order. When the stakes are this deadly, federal courts should step in. If police departments still failed to comply, federal judges could impose penalties. How do we know? Consider school segregation. Local officials had promised change but failed to ensure it. It took decades of close supervision by federal courts to make a dent in the problem. As the courts started to leave this field in more recent years, de facto segregation returned.
In the largest opium harvest in Afghanistan's history; with a record 224,000 hectares under cultivation this year, the country produced an estimated 6,400 tons of opium, or around 90 percent of the world's supply. In Afghanistan today, according to U.N. estimates, the opium industry accounts for 15 percent of the economy. The Afghan narcotics trade has gotten undeniably worse since the U.S.-led invasion: The country produces twice as much opium as it did in 2000. In the provincial capital of Lashkar Gah, I arrange an interview with a drug smuggler. I'll call him Sami. He grew up in a camp near the border town of Chagai, in Pakistan. After finishing 11th grade, he got work as a driver and began ... smuggling opium through the desert. Baramcha, a smuggling hub on the Afghan side of the border ... functions as a kind of switching station for much of the opium trade. "The security situation is good ... the drug smugglers and the ISI are tight together," he says, referring to Pakistan's intelligence service. The United States' alliances with opium traffickers in Afghanistan go back to the 1980s, when the CIA waged a dirty war to undermine the Soviet occupation of the country. Large-scale cultivation was introduced [with] support from the ISI and the CIA. U.S. counternarcotics programs, which have cost nearly $8 billion to date, and the Afghan state-building project in general, are perversely part of ... the drug trade.
Note: Read the complete article above for an in depth look at the Afghan narcotics trade. For more, read this 2002 news article, which shows that the Taliban had nearly eliminated opium production in Afghanistan prior to the US led invasion. Yet once the allies defeated the Taliban, opium production hit new records. Today, Afghanistan produces 90% of the global opium supply. This huge source of income is used to fund all kinds of secret projects. Read powerful evidence that the CIA and US military are directly involved in the drug trade.
No one likes -- or trusts -- the government. At this point, that's accepted conventional wisdom. And most people assume it has always been like that. But that lack of trust hasn't always been a part of the American experience -- as this awesome chart from our friends at the Pew Research Center shows. The downward trajectory is stark. The collapse began during the presidency of Lyndon B. Johnson, which, not coincidentally, overlapped with the Vietnam War. The 1970s -- thanks to Vietnam and Watergate -- sped up the loss of faith in the government. And, after a quasi-resurgence during the 1980s, the trend line for the past few decades is quite clear. With the exception of relatively brief spikes that overlap with the first Gulf War and the terrorist attacks of Sept. 11, 2001, the number of people who trust the government has been steadily declining; the last time Pew asked the question, in February, just 24 percent said they trust the government "always" or "most of the time". Exit polling from the 2014 midterms makes clear that things haven't improved. That's a tough starting place for any politician. But, if the chart [linked to] above is any indication, it's the new normal.
Note: For more along these lines, see concise summaries of deeply revealing news articles about government corruption.
Entrepreneurs and established companies alike depend on the U.S. Patent and Trademark Office. Newly released documents reveal that the office, tasked with evaluating and protecting the rights to intellectual property, has a covert system for delaying controversial or inconvenient patents. It’s a system that ... could function as a way to limit or stomp out emerging companies. Before today, the program — named the Sensitive Application Warning System (SAWS) — has been mentioned only anecdotally by examiners who work in or with the office, and in a government memo that was leaked in March 2006. However, a new 50-page document obtained by a law firm’s Freedom of Information Act request shows the sweeping scope and conflicting interests of this particular set of rules. The law firm behind the request, Kilpatrick Townsend & Stockton LLP, frequently represents major tech companies, including Apple, Google, Twitter, and Oracle. For Thomas Franklin, a partner at Kilpatrick Townsend, applications that he prosecutes typically issue as patents 22 months after filing. Any application that is categorized in SAWS, however ... can be delayed for years. There is no official channel to notify an applicant once her patent is placed in the system. Franklin told Yahoo Tech., “That’s what piqued my interest as a constitutional issue. There’s a secret program that they’re not supposed to talk about.”
Note: When the government has a "property interest" in any patent application, it may be rejected, stolen, or classified according to secret criteria. Among new energy technology researchers, it is well known that the patent office can block patents of amazing inventions that could cost oil and energy companies billions of dollars. Read this excellent summary for more on this.
In a damning 2009 report, Ireland’s independently-run Commission to Inquire into Child Abuse – which spent nine years investigating thousands of allegations of abuse at religious-run institutions – spoke of a culture of “endemic sexual abuse” in the country’s Catholic boys’ schools and of the “deferential and submissive attitude” of the Irish state towards the religious orders who ran them. What emerged from the investigation, and from a separate Dublin-specific inquiry concluded the same year, was that institutional child abuse was widespread and that it had occurred not only in schools, but in many places where young people were in the care of religious orders. The commissions also revealed that very often when children reported the abuse, they were largely ignored and even punished. The state, too, had willfully turned a blind eye. The very ordinariness of [the abuse] struck photographer Kim Haughton as profoundly disturbing. This was molestation that was at once hidden and woven into the fabric of everyday life. “So much of this happened in places like schools and churches, and in homes,” she tells TIME. And so she embarked on In Plain Sight, a project in which the [actual] sites of these abuses became the subjects of her lens ... places that, when taken at face value, seem unremarkable. “The work, I hope, challenges us to confront these crimes in the context in which they happened,” Haughton adds, “everyday life.”
Note: Read the complete story to see photos from In Plain Sight. Explore powerful evidence from a suppressed Discovery Channel documentary showing that child sexual abuse scandals also reach to the highest levels of government in the US. And read an abundance of major media news articles showing rampant child sexual abuse at high levels in many prominent organizations.
Whistleblower Edward Snowden received several standing ovations in the Swedish parliament after being given the Right Livelihood award for his revelations of the scale of state surveillance. Snowden, who is in exile in Russia, addressed the parliament by video from Moscow. In a symbolic gesture, his family and supporters said no one picked up the award on his behalf in the hope that one day he might be free to travel to Sweden to receive it in person. Snowden is wanted by the US on charges under the Espionage Act. His chances of a deal with the US justice department that would allow him to return home are slim and he may end up spending the rest of his days in Russia. His supporters hope that a west European country such as Sweden might grant him asylum. The awards jury, in its citation, said Snowden was being honoured “for his courage and skill in revealing the unprecedented extent of state surveillance violating basic democratic processes and constitutional rights”. The chamber was filled with members of parliament from almost all the parties. The Guardian editor, Alan Rusbridger, was also among the recipients. The jury citation said his award was in celebration of “building a global media organisation dedicated to responsible journalism in the public interest, undaunted by the challenge of exposing corporate and government malpractices”.
Note: For more along these lines, read how Wikipedia founder Jimmy Wales considers Edward Snowden a hero. For more on the Snowden case, see the deeply revealing reports from reliable major media sources available here.
James Risen, who won the Pulitzer Prize in 2005 for exposing the NSA warrantless eavesdropping program, has [been] threatened with prison by the Obama Justice Department. [This] is almost certainly the vindictive by-product of the U.S. government’s anger over his NSA reporting. He has published a new book on the War on Terror entitled Pay Any Price: Greed, Power and Endless War. Risen's [critique] is one of the first to offer large amounts of original reporting on ... a particular part of the War on Terror, namely the way in which economic motives, what [he] calls the Homeland Security Industrial Complex, has driven a huge part of the war. GLENN GREENWALD: How much of this economic motive is the cause of the fact that we’ve now been at war for 13 years? RISEN: It plays a really central role. After so many years there’s ... a post-9/11 mercenary class that’s developed that have invested. Not just people who are making money, but people who are in the government. Their status and their power within the government are invested in continuing the war. There’s very little debate about whether to continue the war. When Dick Cheney said, “the gloves come off,” ... that really meant, “We’re going to deregulate national security, and we’re going to take off all the rules that were imposed in the ’70s after Watergate.” That was just a dramatic change. It’s been extended to this whole new homeland security apparatus. People think that terrorism is an existential threat, even though it’s not, and so they’re willing to go along with all this.
Note: The complete interview at the link above provides details of James Risen's fight to preserve journalistic integrity against a corrupted government's attempts to manipulate the news. For more on Risen's deeply revealing investigation of the Homeland Security Industrial Complex, see this recent NPR interview.
A new analysis of the data available to the public about drone strikes, conducted by the human-rights group Reprieve, indicates that even when operators target specific individuals – the most focused effort of what Barack Obama calls “targeted killing” – they kill vastly more people than their targets, often needing to strike multiple times. Attempts to kill 41 men resulted in the deaths of an estimated 1,147 people, as of 24 November. Reprieve [focused on] cases in which specific people were targeted by drones multiple times. Their data, shared with the Guardian, raises questions about the accuracy of US intelligence. The analysis is a partial estimate. “Drone strikes ... are only as precise as the intelligence that feeds them. There is nothing precise about intelligence that results in the deaths of 28 unknown people, including women and children, for every ‘bad guy’ the US goes after, ”said Reprieve’s Jennifer Gibson. The data cohort is only a fraction of those killed by US drones. Neither Reprieve nor the Guardian examined ... the so-called “signature strikes” that attack people based on a pattern of behavior considered suspicious, rather than intelligence tying their targets to terrorist activity. An analytically conservative Council on Foreign Relations tally assesses that 500 drone strikes outside of Iraq and Afghanistan have killed 3,674 people. Like all weapons, drones will inevitably miss their targets. But the secrecy surrounding them obscures how often misses occur and the reasons for them.
Note: For more along these lines, see concise summaries of deeply revealing military corruption news articles from reliable major media sources, including this NPR article that reports on the possibility of future drone strikes taking place within the US.
The security services are facing questions over the cover-up of a Westminster paedophile ring as it emerged that files relating to official requests for media blackouts in the early 1980s were destroyed. Two newspaper executives have told the Observer that their publications were issued with D-notices – warnings not to publish intelligence that might damage national security – when they sought to report on allegations of a powerful group of men engaging in child sex abuse in 1984. One executive said he had been accosted in his office by 15 uniformed and two non-uniformed police over a dossier on Westminster paedophiles passed to him by the former Labour cabinet minister Barbara Castle. The other said that his newspaper had received a D-notice when a reporter sought to write about a police investigation into Elm Guest House, in southwest London, where a group of high-profile paedophiles was said to have operated. Theresa May, home secretary, this month told the Commons that an official review into whether there had been a cover-up of the Home Office’s handling of child-abuse allegations in the 1980s ... was prompted by the discovery that 114 Home Office files related to child abuse in the 1980s had gone missing. The two journalists, Don Hale, the former editor of the Bury Messenger, and Hilton Tims, news editor of the Surrey Comet between 1980 and 1988, both recall their publications being issued with D-notices around 1984.
Note: Explore powerful evidence from a suppressed Discovery Channel documentary showing that child sexual abuse scandals also reach to the highest levels of government in the US. For more along these lines, see these concise summaries of deeply revealing government corruption and sex abuse scandal news articles from reliable sources.
Two Ohio men wrongly accused of murder experienced freedom for the first time in nearly four decades on Friday morning, but said they don’t harbor bitterness over their unjust imprisonment. A Cleveland judge on Wednesday had dropped all charges against Ricky Jackson, 57, and Wiley Bridgeman, 60, allowing for the pair’s release. Jackson was 19 when he was convicted along with Bridgeman and Bridgeman’s brother, Ronnie, in the 1975 shooting death and robbery of Harold Franks, a Cleveland-area money order salesman. Testimony from a 12-year-old witness helped point to Jackson as the triggerman and led a jury to convict. The witness, Edward Vernon, now 53, recanted his testimony last year, saying he was coerced by detectives, according to Cuyahoga County court documents. Vernon wrote in a 2013 affidavit that he never saw the murder take place, but he was told by detectives that if he didn’t testify against Jackson, his parents would be arrested. The Ohio Innocence Project, which took up the case, said Jackson had been the longest-held U.S. prisoner to be exonerated. Jackson was originally sentenced to death, but that sentence was vacated because of a paperwork error. The Bridgeman brothers remained on death row until Ohio declared the death penalty unconstitutional in 1978. “One of them came within 20 days of execution before Ohio ruled the death penalty unconstitutional” said Mark Godsey, director of the Ohio Innocence Project.
Note: Watch an inspiring five-minute video of this beautiful man who was originally sentenced to death based largely on the testimony of a 12 year old, who it turns out was coerced by police to blame him. And how many have been wrongly executed that we will never know about? For more along these lines, see concise summaries of deeply revealing civil liberties articles from reliable major media sources.
Last Friday, Richard Thomas was sentenced to seven years in prison for lighting the skirt of Sasha Fleischman on fire on an Oakland AC Transit bus. Thomas, who is 17 years old, was tried as an adult for his crime, and many, including Fleischman’s parents, Debbie Crandall and Karl Fleischman, have said the sentence was too harsh. The case represents a clear missed opportunity for a restorative justice solution. Restorative justice provides an effective alternative to the punishment focused model that dominates our criminal justice system. Instead of focusing on what laws have been broken, restorative justice brings the victim and the offender together to determine how to repair harm to the survivor and the community, hold the offender accountable, and reduce future harm. Crandall was supportive of the restorative-justice process, and after Thomas accepted a plea deal, she told KQED: “I wish there had been another way for this to be resolved that did not involve adult court — a place where Richard would really have the chance for rehabilitation.” Juveniles who serve time in adult prisons have significantly higher recidivism rates than those who remain in juvenile facilities. Placing juveniles in community-based centers can help to further decrease recidivism rates. Restorative-justice provider Community Works West’s Restorative Community Conferencing Program illustrates [this]. There is a 15 percent recidivism rate for youth six months after completing Community Works West’s program, compared with 45 percent to 75 percent recidivism rates for youth in and out of the Alameda County Juvenile Justice system.
Note: This teen was sent to prison for seven years despite objections from his victim and his victim's parents. How does that happen? See these excellent, concise summaries of prison corruption news stories from major media sources.
Leana Wen created the “Who’s My Doctor” campaign last year. The effort ... goes a step further than the federal government’s mandate requiring physicians to disclose all money they receive from drug companies. Last month, the Centers for Medicare & Medicaid Services released data that outlined the $3.5 billion that companies paid to the nation’s doctors. The Open Payments database ... was heavily opposed by physician groups and pharmaceutical companies. “Incentives matter,” said Wen in a recent TED talk, “If you go to your doctor because of back pain, you might want to know he’s getting paid $5,000 to perform spine surgery versus $25 to refer you to see a physical therapist.” As part of the “Who’s My Doctor” effort, each physician voluntarily publishes a “Total Transparency Manifesto,” which ... flows into a searchable database that prospective patients can use. One year after starting the project, only 34 “transparent doctors” are listed on the website. There are many more who were less than pleased. “I thought some doctors would sign on and others wouldn’t, but I had no idea of the backlash that would ensue,” she said in her TED talk. The criticism quickly went beyond online comments. Soon, people were asking Wen’s employer to fire her, and sending mail to her home address with threats.
Police are investigating possible murders linked to Elm Guest House in south-west London after claims of a cover-up. A number of allegations have been made. So far the only politician to have been implicated is the Liberal MP Cyril Smith, who died in 2010, but other unnamed politicians were also alleged to have been involved in a Westminster paedophile ring. Smith is alleged to have abused boys at Knowl View residential school in Rochdale and at Elm Guest House, in Barnes in south-west London, in the 1970s and 80s. Greater Manchester police are investigating allegations of abuse by Smith at Knowl View, where Smith was a governor. Other MPs were said to have attended the Elm Guest House. After claims made by the Labour MP Tom Watson in 2012, the Metropolitan police launched Operation Fairbank into child abuse at the guesthouse. Watson said there was “clear intelligence suggesting a powerful paedophile network linked to parliament and No 10”. A dossier of evidence of an alleged paedophile ring, involving several MPs, including Smith, and other public figures, was handed to the Home Office in 1983, by the Conservative MP Geoffrey Dickens, who died in 1995. The 40-page dossier has since been destroyed or lost, according to a Home Office review. At least three MPs were reported to have been questioned in 1982 after a police raid on the guesthouse. It was reported at the time that it was being used as a brothel where children as young as 10 were abused. Two children living in the house were taken into care.
Note: Explore powerful evidence from a suppressed Discovery Channel documentary showing that child sexual abuse scandals also reach to the highest levels of government in the US. And read an abundance of major media news articles showing rampant child sexual abuse at high levels in many prominent organizations.
The Federal Reserve's Board of Governors and the New York Fed have been responsible for supervising Wall Street banks. After the 2008 crisis and the regulatory lapses it revealed, Congress gave the Fed even more oversight authority. Two recent reports highlight that the Fed isn’t very good at supervising certain banks. In September, Carmen Segarra, a former bank examiner at the Federal Reserve Bank of New York, released secret recordings she had made of meetings at the New York Fed in 2012. The recordings revealed that New York Fed employees had identified concerns with a proposed Goldman Sachs deal. The New York Fed didn’t attempt to make Goldman address these concerns. The recordings also showed Ms. Segarra’s superiors pressuring her to soften her finding that Goldman did not comply with federal regulations on conflicts of interest. An October report from the Fed’s Office of Inspector General provided additional confirmation that the Fed is failing to oversee the big banks. The report found that the New York Fed had failed to examine J.P. Morgan Chase’s Chief Investment Office despite a recommendation to do so in 2009. The report concluded that the New York Fed needed to improve its supervision of the biggest, most complex banks. We’re all counting on the Fed to monitor the big banks and stop them from taking on too much risk, but evidence is mounting that this faith in the Fed is misplaced.
Note: If the above link fails, click here. For more along these lines, see these concise summaries of deeply revealing articles about widespread corruption in government and banking and finance. For additional information, see the excellent, reliable resources provided in our Banking Corruption Information Center.
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.