Government Corruption News ArticlesExcerpts of Key Government Corruption News Articles in Media
Expert comparisons of hair, handwriting, marks made by firearms on bullets, and patterns such as bite marks and shoe and tire prints are in some ways unscientific and subject to human bias, a National Academy of Sciences panel chartered by Congress found. Even fingerprint identification is partly a subjective exercise that lacks research into the role of unconscious bias or even its error rate, the panel’s 328-page report said. Since 2002, failures have been reported at about 30 federal, state and local crime labs serving the FBI, the Army and eight of the nation’s 20 largest cities. A 2009 study of post-conviction DNA exonerations — now up to 289 nationwide — found invalid testimony in more than half the cases. FBI examiners claimed until recently that they can match fingerprints to the exclusion of any other person in the world with 100 percent certainty. The academy report found that assertion was “not scientifically plausible” and had chilled research into error rates. In 1999, a Justice Department official, Richard Rau, told a federal court that the department delayed such a study because of the legal ramifications. Meanwhile, errors occur. In 2004, DNA for the first time exonerated a person convicted with a fingerprint match and, separately, the FBI made its first publicly acknowledged fingerprint misidentification. Brandon Mayfield, a Portland, Ore., lawyer, mistakenly was arrested in connection with the terrorist train bombings in Madrid that killed 191 people.
Note: A Washington Post investigation recently found that over a 20 year period, "nearly every examiner in an elite FBI forensic unit gave flawed testimony in almost all trials in which they offered evidence". For more along these lines, see concise summaries of deeply revealing news articles about the corrupt prison industry built upon by systematic violations of civil rights.
On April 19, 1995, a huge truck bomb destroyed a large part of the Alfred P. Murrah Federal Building in Oklahoma City ... killing 168 people, including 19 children. In a matter of days the FBI established that the bombing was the work of a conspiracy. The first conspirator arrested was Timothy McVeigh, a 27-year-old Army veteran. The second conspirator arrested was Terry Nichols. "Oklahoma City," an extraordinarily well-researched book, asserts that the FBI investigation of the bombing was badly flawed and missed, or disregarded, evidence of a larger conspiracy. The authors, Andrew Gumbel and Roger Charles, are both highly regarded investigative reporters who have been immersed in this case for more than a decade. They were given access to vast amounts of material assembled by the defense teams, including 18,000 FBI witness interviews. The book ... outlines how federal prosecutors, eager to wrap up the McVeigh and Nichols cases, avoided raising questions about possible co-conspirators that the defense could use to confound a jury. Among the glaring gaps in the investigation was the failure of the FBI to attempt to match the more than 1,000 unidentified latent fingerprints found in the investigation. [And] almost all the eyewitnesses to the crime claimed that McVeigh was not alone. No fewer than 24 witnesses said that they saw McVeigh, just before and after the crime, with a man who could not have been ... Mr. Nichols. The FBI concluded that these witnesses had all been confused. Certainly eyewitness testimony can be unreliable, but 24 mistaken witnesses—and no accurate ones?
Note: Many aspects of the Oklahoma City bombing were covered up. For a compilation of media videos showing without doubt there were other bombs in the building which later were completely ignored, click here. For other major media articles showing major manipulation, click here click here, here, and here.
A man whose lies helped to make the case for invading Iraq – starting a nine-year war costing more than 100,000 lives and hundreds of billions of pounds – will come clean in his first British television interview tomorrow [click here for interview]. "Curveball", the Iraqi defector who fabricated claims about Iraq's weapons of mass destruction, smiles as he confirms how he made the whole thing up. It was a confidence trick that changed the course of history, with Rafid Ahmed Alwan al-Janabi's lies used to justify the Iraq war. The chemical engineer claimed to have overseen the building of a mobile biological laboratory when he sought political asylum in Germany in 1999. His lies were presented as "facts and conclusions based on solid intelligence" by Colin Powell, US Secretary of State, when making the case for war at the UN Security Council in February 2003. But Mr Janabi ... says none of it was true. US officials "sexed up" Mr Janabi's drawings of mobile biological weapons labs to make them more presentable, admits Colonel Lawrence Wilkerson, General Powell's former chief of staff. "I brought the White House team in to do the graphics," he says, adding how "intelligence was being worked to fit around the policy". Another revelation ... is the real reason why the FBI swooped on Russian spy Anna Chapman in 2010. Top officials feared the glamorous Russian agent wanted to seduce one of US President Barack Obama's inner circle. The fear that Chapman would compromise a senior US official in a "honey trap" was a key reason for the arrest and deportation of the Russian spy ring of 10 people.
Note: For a Washington Post blog on this important development, click here. For a revealing essay by a top U.S. general on major war manipulations, click here. For many major media articles on this topic, click here.
[On March 8, 2012], President Obama signed into law the Federal Restricted Buildings and Grounds Improvement Act of 2011. This law permits Secret Service agents to designate any place they wish as a place where free speech, association and petition of the government are prohibited. It permits the Secret Service to make these determinations based on the content of speech. Thus, federal agents whose work is to protect public officials and their friends may prohibit the speech and the gatherings of folks who disagree with those officials or permit the speech and the gatherings of those who would praise them, even though the First Amendment condemns content-based speech discrimination by the government. The new law also provides that anyone who gathers in a “restricted” area may be prosecuted. Permitting people to express publicly their opinions to the president only at a time and in a place and manner such that he cannot hear them violates the First Amendment, which guarantees the right to useful speech. The same may be said of the rights to associate and to petition. If peaceful public assembly and public expression of political demands on the government can be restricted to places where government officials cannot be confronted, then those rights, too, have been neutered. This abominable legislation enjoyed overwhelming support from both political parties in Congress because the establishment loves power, fears dissent and hates inconvenience, and it doesn’t give a damn about the Constitution.
Note: How strange that the Washington Times was one of the few media to have even covered this incredible infringement on the right to free speech. Fox News also covered it, as you can see in this excellent video. Now instead of being a country where free speech is held in great esteem, the US has "free speech zones" outside of which citizens lose their right to speak freely. What's happening here?
Government officials have openly discussed details of the mission [to kill Osama bin Laden] in speeches, interviews and television appearances, but the administration won't disclose records that would confirm their narrative of that fateful night. The Associated Press asked for files about the raid in more than 20 separate [FOIA] requests, mostly submitted the day after bin Laden's death. The Pentagon told the AP this month it could not locate any photographs or video taken during the raid or showing bin Laden's body. It also said it could not find any images of bin Laden's body on the Navy aircraft carrier where the al-Qaida leader's body was taken. The Pentagon said it could not find any death certificate, autopsy report or results of DNA identification tests for bin Laden, or any pre-raid materials discussing how the government planned to dispose of bin Laden's body if he were killed. It said it searched files at the Pentagon, U.S. Special Operations Command in Tampa, Fla., and the Navy command in San Diego that controls the USS Carl Vinson, the aircraft carrier used in the mission. The Defense Department told the AP in late February it could not find any emails about the bin Laden mission or his "Geronimo" code name that were sent or received in the year before the raid by William McRaven, the three-star admiral at the Joint Special Operations Command who organized and oversaw the mission. It also could not find any emails from other senior officers who would have been involved in the mission's planning.
Note: WantToKnow team member Prof. David Ray Griffin, in his book Osama bin Laden: Dead or Alive?, lays out the extensive evidence that bin Laden died in December 2001, and that since that time Pentagon psyops had been keeping him "alive" with fake videos and audiotapes to maintain a crucial pretext for the ever-expanding "war on terror." Could it be that the Pentagon will produce no records of its purported "death raid" because in fact it will reveal major manipulations involving bin Laden's death?
Today is my last day at Goldman Sachs. Over the course of my career I have had the privilege of advising two of the largest hedge funds on the planet [and] five of the largest asset managers in the United States. My clients have a total asset base of more than a trillion dollars. After almost 12 years at the firm ... I believe I have worked here long enough to understand ... its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it. To put the problem in the simplest terms, the interests of the client continue to be sidelined in the way the firm operates and thinks about making money. Today, if you make enough money for the firm (and are not currently an ax murderer) you will be promoted into a position of influence. What are three quick ways to become a leader? a) Execute on the firm's "axes," which is Goldman-speak for persuading your clients to invest in the stocks or other products that we are trying to get rid of because they are not seen as having a lot of potential profit. b) "Hunt Elephants." In English: get your clients -- some of whom are sophisticated, and some of whom aren't -- to trade whatever will bring the biggest profit to Goldman. c) Find yourself sitting in a seat where your job is to trade any illiquid, opaque product with a three-letter acronym. I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It's purely about how we can make the most possible money off of them.
Note: The author of this article, Greg Smith, was a Goldman Sachs executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa. For an excellent compilation of news articles and government documents showing the huge risk of the derivatives bubble being manipulate by Goldman Sachs and others, click here.
Even as we pass judgment on countries we consider unfree, Americans remain confident that any definition of a free nation must include their own — the land of [the] free. Yet ... in the decade since Sept. 11, 2001, this country has comprehensively reduced civil liberties in the name of an expanded security state. The most recent example of this was the National Defense Authorization Act, signed Dec. 31, which allows for the indefinite detention of citizens. While each new national security power Washington has embraced was controversial when enacted, they are often discussed in isolation. But they don’t operate in isolation. They form a mosaic of powers under which our country could be considered, at least in part, authoritarian. Americans often proclaim our nation as a symbol of freedom to the world while dismissing nations such as Cuba and China as categorically unfree. [Yet] the United States now has much more in common with such regimes than anyone may like to admit. These countries also have constitutions that purport to guarantee freedoms and rights. But their governments have broad discretion in denying those rights and few real avenues for challenges by citizens — precisely the problem with the new laws in this country. The list of powers acquired by the U.S. government since 9/11: 1. Assassination of U.S. citizens. 2. Indefinite detention. 3. Arbitrary justice. 4. Warrantless searches. 5. Secret evidence. 6. War crimes. 7. Secret court. 8. Immunity from judicial review. 9. Continual monitoring of citizens. 10. Extraordinary renditions.
Note: Thank you to the Washington Post for publishing this amazing article revealing the disturbing and severe erosion of freedom and civil liberties in the U.S. ever since 9/11. Written by Professor Jonathan Turley of George Washington University in the nation's capital, this incisive essay lays bare what so many citizens don't know, and what many don't even want to know. Yet, in this case, ignorance is not bliss. Don't miss the full article listing the loss of 10 important civil liberties at this link.
Americans have never much liked government. After all, the nation was conceived in a revolution against government. But the surge of cynicism engulfing America isn't about how big government has become. It's a growing perception that our government is no longer working for average people. It's for big business, Wall Street and the very rich. The richest Americans are taking home a bigger share of total income than at any other time since the 1920s. Their tax payments are down because the Bush tax cuts reduced their top rates to the lowest level in more than half a century, and cut capital gains taxes to 15 percent. Congress hasn't even closed a loophole that allows mutual-fund and private-equity managers to treat their incomes as capital gains. So the 400 richest Americans, whose total wealth exceeds the combined wealth of the bottom 150 million Americans put together, pay an average of 17 percent of their income in taxes. That's lower than the tax rates of most day laborers. And the share of revenues coming from corporations has been dropping. The biggest, like GE, find ways to pay no federal taxes at all. Many shelter their income abroad, and every few years Congress grants them a tax amnesty to bring the money home. Get it? "Big government" isn't the problem. The problem is the big money that's taking over government. Government is doing less of the things most of us want it to do ... and more of the things big corporations, Wall Street and the wealthy want it to do.
Note: The author of this analysis, Robert Reich, is a former U.S. secretary of labor, is professor of public policy at UC Berkeley and the author of Aftershock: The Next Economy and America's Future. He blogs at www.robertreich.org.
Imam Salahuddin Muhammad could hardly miss Shahed Hussain when he first appeared three years ago at his mosque in the dilapidated town of Newburgh, just 60 miles up the Hudson River from New York. Hussain was flash, drove expensive cars and treated people to gifts of cash and food. Hussain would make Newburgh's Muslim community famous when earlier this year four other black Newburgh Muslims were jailed for 25 years for a 2009 plot to fire a Stinger missile at US military planes. All four followed the instructions of Hussain, who meticulously organised the scheme: from getting the missile and bombs, to reconnaissance missions, to teaching the tenets of radical Islam. Hussain was a fake. In fact, Hussain worked for the FBI as an informant trawling mosques in hope of picking up radicals. Yet far from being active militants, the four men he attracted were impoverished individuals struggling with Newburgh's grim epidemic of crack, drug crime and poverty. Hussain offered the men huge financial inducements to carry out the plot – including $250,000 to one man – and free holidays and expensive cars. The Newburgh Four ... represent the most extreme form of a controversial FBI policy to use invented terrorist plots to lure targets. "There has been no case as egregious as this. It is unique in the incentive the government provided. A quarter million dollars?" said Professor Karen Greenberg, a terrorism expert at Fordham University.
Note: For a powerful BBC documentary showing clearly that much of the war on terror is a fabrication to forward a political agenda, watch Power of Nightmares at this link. For many reports from major media sources on the fake terror behind the "global war on terror", click here.
The OCC’s quarterly report on trading revenues and bank derivatives activities is based on Call Report information provided by all insured U.S. commercial banks and trust companies, reports filed by U.S. financial holding companies, and other published data. The notional amount of derivatives held by insured U.S. commercial banks decreased $1.4 trillion, or 0.6%, from the second quarter of 2011 to $248 trillion. Notional derivatives are 5.7% higher than at the same time last year. Derivatives activity in the U.S. banking system continues to be dominated by a small group of large financial institutions. The five banks with the most derivatives activity hold 96% of all derivatives. Insured commercial banks have more limited legal authorities than do their holding companies.
Note: Graphs in this OCC report (pg. 25 & 26) show that five U.S. banks, JPMorgan Chase, Citibank, BofA, Goldman Sachs, and Morgan Stanley, hold $235 of the $248 trillion above, while their holding companies control an additional $311 of the $326 trillion in derivatives held by holding companies. So these five banks and their holding companies combined hold $546 trillion in derivatives, 95% of the U.S. derivatives market, nearly 80% of the global market, and equivalent to over $75,000 for every person on the planet. If the above link fails, click here. For quarterly derivative reports by the OCC going back to 1995, click here.
A well-known Washington lobbying firm with links to the financial industry has proposed an $850,000 plan to take on Occupy Wall Street and politicians who might express sympathy for the protests, according to a memo obtained by [MSNBC]. The proposal was written on the letterhead of the lobbying firm Clark Lytle Geduldig & Cranford and addressed to one of CLGC’s clients, the American Bankers Association. CLGC’s memo proposes that the ABA pay CLGC $850,000 to conduct “opposition research” on Occupy Wall Street in order to construct “negative narratives” about the protests and allied politicians. Two of the memo’s authors, partners Sam Geduldig and Jay Cranford, previously worked for House Speaker John Boehner, R-Ohio. The memo outlines a 60-day plan to conduct surveys and research on OWS and its supporters so that Wall Street companies will be prepared to conduct a media campaign in response to OWS. Wall Street companies “likely will not be the best spokespeople for their own cause,” according to the memo. “A big challenge is to demonstrate that these companies still have political strength and that making them a political target will carry a severe political cost.”
Note: For key reports from reliable sources on the reasons why people nationwide are occupying their city centers in protest against the collusion between powerful corporate and government elites, click here.
It’s no secret that many members of the U.S. House and Senate are millionaires — 47 percent of them — their salaries paid in part by the American taxpayers. The Center for Responsive Politics has crunched the numbers and released the results on its Open Secrets blog: “About 47 percent of Congress, or 249 current members are millionaires. In 2010, the estimated median net worth of a current U.S. senator stood at an average of $2.56 million. Despite the global economic meltdown in 2008 and the sluggish recovery that followed, that’s up about 7.6 percent from an estimated median net worth of $2.38 million in 2009 … and up 13 percent from a median net worth of $2.27 million in 2008. Fully 36 Senate Democrats, and 30 Senate Republicans reported an average net worth in excess of $1 million in 2010. The same was true for 110 House Republicans and 73 House Democrats.” “The vast majority of members of Congress are quite comfortable, financially, while many of their own constituents suffer from economic hardships,” said Sheila Krumholz at the Center For Responsive Politics. “Few Americans enjoy the same financial cushions maintained by most members of Congress — or the same access to market-altering information that could yield personal, financial gains.”
Note: For key reports on major media control of information and cover-ups, click here.
The same insider trading that can land a regular citizen in jail is perfectly legal for members of Congress. Steve Kroft reports on how America's lawmakers can legally make tidy profits on information only they know, simply because they won't pass a law against themselves. Among the revelations in Kroft's report: Members of Congress have bought stock in companies while laws that could affect those companies were being debated in the House or Senate. At least one representative made significant stock purchases the day after he and other members of Congress attended a secret meeting in September 2008, where the Fed chair and the treasury secretary informed them of the imminent global economic meltdown. The meeting was so confidential that cell phones and other digital devices were confiscated before it began. Efforts to make such insider trading off limits to Washington's lawmakers have never been able to get traction. Former Rep. Brian Baird says he spent half of his 12 years in Congress trying to get co-sponsors for a bill that would ban insider trading in Congress and also set some rules up to govern conflicts of interest. In 2004, he and Rep. Louise Slaughter introduced the "Stock Act" to stop the insider trading. How far did they get? "We didn't get anywhere. Just flat died," he tells Kroft.
Ethics reforms put in place since the influence-peddling scandal surrounding high-rolling lobbyist Jack Abramoff haven't cleaned up the system "at all," a now-free Abramoff says. Abramoff served three and a half years in prison for conspiracy, fraud and tax evasion before his release last December. In an interview ... on CBS News' "60 Minutes," he said the reforms imposed after his guilty plea have little effect while campaign finance remains untouched. "You can't take a congressman to lunch for $25 and buy him a hamburger or a steak or something like that," he said. "But you can take him to a fund-raising lunch and not only buy him that steak, but give him $25,000 extra and call it a fund-raiser -- and have all the same access and all the same interactions with that congressman." Abramoff's interview with "60 Minutes" aired the night before a memoir, Capitol Punishment, is scheduled to hit shelves. Abramoff describes some of the techniques he employed as a lobbyist as "evil," "terrible" and, at the same time, "effective" for his firm, his clients and Republican politicians he usually worked with. Abramoff said the best way to get what he wanted to was to offer high-ranking congressional aides a job when they left public office. Once that was done, he told CBS, "We owned them." "Everything that we want, they're going to do. Not only that, they're going to think of things we can't think of to do," Abramoff said, estimating his office had "very strong influence" on 100 of the 535 congressional offices.
Note: For a powerful, six-minute analysis of legalized corruption based on Abramoff's comments on CBS 60 Minutes, click here. A petty thief steals three times for a total value of a few thousand dollars and by the "three strikes" law ends up in jail for life. Abramoff, along with his assistants, successfully corrupt U.S. Senators and Congress members and serve less than four years in jail. Some of his assistants got off with no jail time. Is the US justice system biased towards the rich?
Jack Abramoff may be the most notorious and crooked lobbyist of our time. He became a master at showering gifts on lawmakers in return for their votes on legislation. Five years ago ... Jack Abramoff pled guilty ... and served three and a half years in prison. Abramoff: I think most congressmen don't feel they're being bought. [They] can in their own mind justify the system. The "best way" to get a congressional office ... was to offer a staffer a job that could triple his salary. The moment I [offered] that to them ... we owned them. Most of the people ... on Capitol Hill wanted ... to be lobbyists. Republican Congressman Bob Ney was ambitious and looked at Abramoff as a way to build alliances with the White House and the majority leader. Neil Volz, his former chief of staff, by then a lobbyist for Abramoff .. asked Ney to insert some language into a reform bill that would give a backdoor license to an Indian casino. Abramoff: We crafted language that was so obscure ... but so precise to change the U.S. code. "Public law 100-89 is amended by striking section 207 101 stat. 668, 672." Members don't read the bills. Ney: It was a great big shell game. Ney would eventually serve 17 months in federal prison, the only congressman who was ever charged. But Abramoff says that there were many other members that did his bidding that could have been charged. Abramoff: I'm talking about giving a gift to somebody who makes a decision on behalf of the public. That's really what bribery is. But it is done everyday. There were very few members who ... didn't at some level participate in that. Our system is flawed and has to be fixed. He says the most important thing that needs to be done is to prohibit members of Congress and their staff from ever becoming lobbyists in Washington.
Note: To watch this incredibly revealing interview, click here. For a powerful, six-minute analysis of legalized corruption based on Abramoff's comments, click here. A petty thief steals three times for a total value of a few thousand dollars and by the "three strikes" law ends up in jail for life. Abramoff, along with his assistants, successfully corrupt U.S. Senators and Congress members and serve less than four years in jail. Many get off with no jail time. Is the US justice system biased towards the rich?
It's the dark heart of Britain, the place where democracy goes to die, immensely powerful, equally unaccountable. But I doubt that one in 10 British people has any idea of what the Corporation of the City of London is and how it works. As Nicholas Shaxson explains in his fascinating book Treasure Islands, the Corporation exists outside many of the laws and democratic controls which govern the rest of the United Kingdom. The City of London is the only part of Britain over which parliament has no authority. This is ... an official old boys' network. In one respect at least the Corporation acts as the superior body: it imposes on the House of Commons a figure called the remembrancer: an official lobbyist who sits behind the Speaker's chair and ensures that, whatever our elected representatives might think, the City's rights and privileges are protected. The mayor of London's mandate stops at the boundaries of the Square Mile. The City has exploited this remarkable position to establish itself as a kind of offshore state, a secrecy jurisdiction which controls the network of tax havens housed in the UK's crown dependencies and overseas territories. This autonomous state within our borders is in a position to launder the ill-gotten cash of oligarchs, kleptocrats, gangsters and drug barons. It has also made the effective regulation of global finance almost impossible.
Note: To understand how democracy is easily circumvented, read this full article. For lots more from reliable sources on the hidden background to the control over governments held by financial powers, click here.
Wall Street's total price tag on settlements with U.S. securities regulators for allegedly misleading investors about mortgage bonds churned out ahead of the financial crisis surged past $1 billion with a deal by Citigroup Inc. to pay $285 million ... to end civil-fraud charges by the Securities and Exchange Commission. The SEC claimed Citigroup sold slices of the $1 billion mortgage-bond deal without disclosing to investors that the bank was shorting $500 million of the deal, or betting its assets would lose value. Several Wall Street firms have settled similar claims by the SEC, which has generally stuck to the strategy used by the agency to get a $550 million settlement last year with Goldman Sachs Group Inc.. And the SEC's investigation of the Wall Street mortgage machine isn't over yet. Lorin Reisner, deputy enforcement director at the SEC, said civil mortgage-related cases against Goldman, J.P. Morgan Chase & Co., Countrywide Financial Corp., New Century Financial Corp. and other companies "read like an index to unlawful conduct in connection with the financial crisis." The SEC has collected a total of $1.03 billion through mortgage-bond-deal settlements. In addition to Citigroup, the total includes Goldman, J.P. Morgan, Royal Bank of Canada, Wells Fargo & Co. and Credit Suisse Group AG.
Note: For lots more from major media sources on the illegal profiteering of major financial corporations, click here.
Citigroup Inc. and Bank of America Corp. were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits. By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret. Fed Chairman Ben S. Bernanke’s [actions] included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The largest borrower, Morgan Stanley, got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress. It wasn’t just American finance. Almost half of the Fed’s top 30 borrowers, measured by peak balances, were European firms. Data gleaned [under the Freedom of Information Act] make clear for the first time how deeply the world’s largest banks depended on the U.S. central bank to stave off cash shortfalls. Even as the firms asserted in news releases or earnings calls that they had ample cash, they drew Fed funding in secret.
Note: For a treasure trove of information from reliable sources on the government transfer of public assets to private banks and financial corporations, click here.
The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. Among the [Government Accountability Office] investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. The [report] also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans. For example, the CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed. The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.
Note: We don't normally use the website of a member of the U.S. Senate as a source, but as amazingly none of the media covered this vitally important story other than one blog on Forbes, we are publishing this here. The GAO report to back up these claims is available for all to see at this link. For how the media is so controlled, don't miss the powerful two-page summary with reports by many award-winning journalists at this link. For another good article on the Fed's manipulations, click here.
The more aggressively a bank lobbied before the financial crisis, the worse its loans performed during the economic downturn -- and the more bailout dollars it received, according to a study published by the National Bureau of Economic Research this week. The report, titled "A Fistful of Dollars: Lobbying and the Financial Crisis," said that banks' lobbying efforts may be motivated by short-term profit gains, which can have devastating effects on the economy. "Overall, our findings suggest that the political influence of the financial industry played a role in the accumulation of risks, and hence, contributed to the financial crisis," said the report, written by three economists from the International Monetary Fund. Data collected by the three authors -- Deniz Igan, Prachi Mishra and Thierry Tressel -- show that the most aggressive lobbiers in the financial industry from 2000 to 2007 also made the most toxic mortgage loans. They securitized a greater portion of debt to pass the home loans onto investors and their stock prices correlated more closely to the downturn and ensuing bailout. The banks' loans also suffered from higher delinquencies during the downturn.
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.