Corporate Corruption News ArticlesExcerpts of Key Corporate Corruption News Articles in Media
The U.S. lambastes and strong-arms countries that help drug lords and millionaire investors hide their money from tax collectors. Critics say it should look closer to home. America itself is emerging as a top tax haven alongside the likes of Switzerland, the Cayman Islands and Panama. And states such as Delaware, Nevada, South Dakota and Wyoming, in particular, are competing with each other to provide foreigners with the secrecy they crave. "There's a big neon sign saying the U.S. is open to tax cheats," says John Christensen, executive director of the Tax Justice Network. America's openness to foreign tax evaders is coming under new scrutiny after the leak this week of 11.5 million confidential documents from a Panamanian law firm, [which] show how some of the world's richest people hide assets in shell companies to avoid paying taxes. Christensen's group, which campaigns for a global crackdown on tax evaders, says the United States ranks third in the world in financial secrecy, behind Switzerland and Hong Kong but ahead of notorious tax havens such as the Cayman Islands and Luxembourg. Under a 2010 law, passed after it was learned that the Swiss bank UBS helped thousands of Americans evade U.S. taxes, the United States demands that banks and other financial institutions disclose information on Americans abroad to make sure they pay their U.S. taxes. But ... American banks don't even collect the kind of information foreign countries would need to identify tax dodgers.
Note: A 2015 Guardian newspaper article further describes how the US helps the super-rich hide assets. For more along these lines, see concise summaries of deeply revealing financial industry corruption news articles from reliable major media sources.
The world is awash in glyphosate, the active ingredient in the herbicide Roundup, produced by Monsanto. It has now become the most heavily-used agricultural chemical in the history of the world. A study published Tuesday ... reveals that Americans have applied 1.8 million tons of glyphosate since its introduction in 1974. Worldwide, 9.4 million tons of the chemical have been sprayed onto fields. That’s ... enough to spray nearly half a pound of Roundup on every cultivated acre of land in the world. And it’s troubling, considering that in March 2015 the World Health Organization’s International Agency for Research on Cancer unanimously determined that glyphosate is probably carcinogenic to humans. Research has also shown that glyphosate is an endocrine disruptor, meaning that it interferes with the proper functioning and production of hormones, in human cell lines. The mass-spraying of glyphosate has [also] led to the explosion of resistant weeds, which have evolved to survive despite being sprayed. Already, weeds resistant to the herbicide are found on half of all American farmers’ fields. Glyphosate was once only used on a small-scale. However, in the 1990s, Monsanto began introducing genetically modified crops that were resistant to the herbicides, such as Roundup Ready corn and soybeans. Since then, its use has skyrocketed. At the same time, the U.S. Environmental Protection Agency has relaxed its rules. Fifty times more glyphosate is allowed on corn grain now than in 1996.
Note: The negative health impacts of Monsanto's Roundup are well known. Major lawsuits are building over Monsanto's lies to regulators and the public about the safety of glyphosate. For more along these lines, see concise summaries of deeply revealing GMO news articles from reliable major media sources.
On Page 5 of a credit card contract used by American Express ... is a clause that most customers probably miss. If cardholders have a problem with their account, American Express explains, the company “may elect to resolve any claim by individual arbitration.” Those nine words are at the center of a far-reaching power play orchestrated by American corporations. By inserting individual arbitration clauses into a soaring number of consumer and employment contracts, companies like American Express devised a way to circumvent the courts and bar people from joining together in class-action lawsuits, realistically the only tool citizens have to fight illegal or deceitful business practices. It has become increasingly difficult to apply for a credit card, use a cellphone, get cable or Internet service, or shop online without agreeing to private arbitration. The same applies to getting a job, renting a car or placing a relative in a nursing home. By banning class actions, companies have essentially disabled consumer challenges to ... predatory lending, wage theft and discrimination. “This is among the most profound shifts in our legal history,” William G. Young, a federal judge ... said in an interview. “Ominously, business has a good chance of opting out of the legal system altogether and misbehaving without reproach.” Thousands of cases brought by single plaintiffs over fraud, wrongful death and rape are now being decided behind closed doors. And the rules of arbitration largely favor companies.
A new report provides data illustrating just how big a budgetary issue tax avoidance has become. The analysis released Tuesday comes from ... Citizens for Tax Justice and U.S. Public Interest Research Group. The groups find that almost 72 percent of Fortune 500 companies are operating subsidiaries in so-called “tax haven” countries like Bermuda and the Cayman Islands. In all, those firms are “holding more than $2.1 trillion in accumulated profits offshore for tax purposes.” The report says that among the U.S.-based firms with the biggest overseas cash holdings are major financial firms such as Citigroup and Bank of America, which were bailed out by taxpayers after the 2008 financial crisis. Also on the list are tech giants such as Microsoft - which International Business Times last year reported was keeping $92 billion offshore. Assuming a tax rate of just 6 percent on those profits - far less than the official U.S. corporate tax rate and less than Trump’s proposed “repatriation” rate - the groups estimate that the firms “would collectively owe $620 billion in additional federal taxes” if they weren’t able to shelter their cash in tax havens. For comparison, that’s more than the federal government’s entire projected budget deficit for 2015.
Note: For more along these lines, see concise summaries of deeply revealing corporate corruption news articles from reliable major media sources.
The head of a US pharmaceutical company has defended his company's decision to raise the price of a 62-year-old medication used by Aids patients by over 5,000%. Turing Pharmaceuticals acquired the rights to Daraprim in August. After Turing's acquisition, a dose of Daraprim in the US increased from $13.50 (Ł8.70) to $750. The pill costs about $1 to produce, but [CEO Martin] Mr Shkreli, a former hedge fund manager, said that does not include other costs like marketing and distribution, which have increased dramatically in recent years. "We needed to turn a profit on this drug," Mr Shkreli told Bloomberg TV. "The companies before us were actually giving it away almost." He says the practice is not out of line with the rest of the industry. "Daraprim is still underpriced relative to its peers," he told Bloomberg TV. The Infectious Diseases Society of America, the HIV Medicine Association and other health care providers wrote an open letter to Turing, urging the company to reconsider.
Note: Following public outcry, Martin Shkreli now says that Daraprim's price will not increase by 5000%, but the fact that this would even be consider shows how rampant corruption is in the industry. For more along these lines, see concise summaries of deeply revealing big pharma corruption news articles from reliable major media sources.
Risperdal is a billion-dollar antipsychotic medicine with real benefits — and a few unfortunate side effects. It can cause strokes among the elderly. And it can cause boys to grow large, pendulous breasts; one boy developed a 46DD bust. Yet Johnson & Johnson marketed Risperdal aggressively to the elderly and to boys while allegedly manipulating and hiding the data about breast development. J&J got caught, pleaded guilty to a crime and has paid more than $2 billion in penalties and settlements. But that pales next to some $30 billion in sales of Risperdal around the world. In 1994, J&J released Risperdal. The Food and Drug Administration said it ... was effective primarily for schizophrenia in adults. That’s a small market. So J&J reinvented Risperdal as a drug for a broad range of problems, targeting everyone from seniors with dementia to children with autism. The company also turned to corporate welfare: It paid doctors and others consulting fees and successfully lobbied for Texas to adopt Risperdal in place of generics. Even though Risperdal wasn’t approved for the elderly, J&J formed a sales force called ElderCare. The F.D.A. protested and noted that there were “an excess number of deaths” among the elderly who took the drug. At the same time, J&J ... began peddling the drug to pediatricians, so that by 2000, more than one-fifth of Risperdal was going to children and adolescents. In 2003, the company had a “back to school” marketing campaign for Risperdal. By 2004 Risperdal was a $3-billion-a-year drug.
Since HPV vaccines were introduced seven years ago, it has been assumed that they would prevent cervical cancer. But the vaccines have never been shown to prevent any cancer. It has also been assumed for seven years that the vaccine is safe. Yet there have been thousands of adverse event reports. The CDC itself admits there are three times as many adverse events for the HPV vaccine Gardasil as there are for all other vaccines combined. Compared to all other vaccines in the U.S. schedule, Gardasil alone is associated with 61 percent of all serious adverse events, including 63.8 percent of all deaths and 81.2 percent of all permanent disabilities in females under 30 years of age. Japan, India and France have removed HPV vaccines from their recommended list due to safety and efficacy concerns. The Health, Welfare and Labor Ministry of Japan also conducted a national investigation regarding post HPV vaccine injuries, [which] concluded that the harm experienced by women taking the vaccine is overwhelmingly greater than any expected benefits. Prompted by medical reports of post-HPV vaccination arrhythmia and motor neuron disabilities in children in Denmark, the European Medicines Agency is conducting an investigation of HPV injection adverse events. Lawsuits for HPV injuries and deaths have also been filed in Spain, France and Columbia.
Note: Read an article showing that several countries have filed lawsuits claiming damage from the HPV vaccine. For more along these lines, see concise summaries of deeply revealing vaccine controversy news articles from reliable major media sources.
The prison phone business is a wildly complex, fiercely secretive and enormously lucrative industry. Over the last decade, [this] business has become a scandalous industry, characterized by lawsuits, exorbitant fees, high phone rates and monopolistic relationships between public jails and private companies that openly offer kickbacks to local sheriffs. "This is about shifting the cost of the police state onto the backs of the poor people being policed," says Paul Wright, executive director of Human Rights Defense Center. [There are] an estimated 2.2 million inmates currently behind bars in America. If you've ever tried to call an inmate, there's a good chance you've heard of Securus, or its main competitor, Global Tel*Link (GTL). The two companies reportedly make up about 80 percent of the prison phone business, which drives about $1.2 billion per year in revenues. In the last few years, Securus, especially, has emerged into one of the largest, if not most secretive, prison technology companies in the business. The company employs 1,000 associates in 46 states, contracts with 2,600 jails and prisons across North America, and provides service to more than 1 million inmates and their families. Securus earned $114.6 million in profits 2014, on revenues of about $404 million. When companies like Securus send proposals to jails and prisons around the country, they offer a percentage of the call rate back to the sheriff's office. It's typical for commissions to range anywhere from 40 percent and 80 percent.
The May 20 settlement between the Justice Department and five giant banks reveals the appalling weakness of modern antitrust. The banks had engaged in the biggest price-fixing conspiracy in modern history. It was a "brazen display of collusion" that went on for years, said Attorney General Loretta Lynch. But there will be no trial [and] no executive will go to jail. The fines ... will be treated by the banks as costs of doing business. America used to have antitrust laws that permanently stopped corporations from monopolizing markets. No longer. The result has been higher prices for the many, and higher profits for the few. It's a hidden upward redistribution from the majority of Americans to corporate executives and wealthy shareholders. Similar upward distributions are occurring elsewhere in the economy. The four largest food companies control 82 percent of beef packing, 85 percent of soybean processing, 63 percent of pork packing, and 53 percent of chicken processing. Monsanto alone owns the key genetic traits to more than 90 percent of the soybeans planted by farmers in the United States, and 80 percent of the corn. Big Agribusiness wants to keep it this way. The list goes on, industry after industry, across the economy. Antitrust has been ambushed by the giant companies it was designed to contain. The market is rigged. And unless government unrigs it through bold antitrust action to restore competition, the upward distributions hidden inside the "free market" will become even larger.
Note: The above article was written by former US Secretary of Labor and current professor of public policy at UC Berkeley Robert Reich. For more along these lines, see concise summaries of deeply revealing news articles about the systemically corrupt financial industry and the income inequality that this contributes to.
Within hours of Superstorm Sandy slamming the East Coast two years ago, Americans opened their wallets to help — donating millions to the first charity that came to mind: the American Red Cross. In the months after the disaster, the Red Cross touted its success in delivering food, clothes and shelter to tens of thousands of people left homeless by the storm. The venerable charity's track record in dealing with the megastorm is now being challenged. Multiple internal documents obtained by NPR and ProPublica along with interviews with top Red Cross officials ... depict an organization so consumed with public relations that it hindered the charity's ability to provide disaster services. Among NPR and ProPublica's findings: The Red Cross national headquarters in Washington "diverted assets for public relations purposes." A former Red Cross official managing the Sandy effort says 40 percent of available trucks were assigned to serve as backdrops for news conferences. Distribution of relief was "politically driven instead of [Red Cross] planned." Relief organizers were ordered to produce 200,000 additional meals one day — to drive up numbers. They did it at extraordinary cost, even though there was no one to deliver them to and most went to waste. It wasn't just Sandy. When Isaac hit Mississippi and Louisiana earlier in 2012 ... one Red Cross official had 80 trucks drive around empty or largely empty "just to be seen," as one of the drivers recalls.
Note: The above story follows up on this Salon/ProPublica article, where the Red Cross called its spending habits a "trade secret". For more along these lines, see concise summaries of deeply revealing stories about corporate corruption from reliable sources.
Did Merck use false pretenses to monopolize the market for mumps vaccines? A pair of lawsuits – one of which is filed by former employees and the other by doctors – make this allegation and a federal judge is allowing both claims to proceed. The former employees – virologists who filed a whistleblower lawsuit four years ago – charge Merck knew its vaccine was less effective than the purported 95% efficacy level. And they alleged that senior management was aware, complicit and in charge of testing that concealed the actual effectiveness. They claim to have witnessed fIrsthand what they describe as “improper testing and data falsification in which Merck engaged in order to conceal what the drug maker knew about the vaccine’s diminished efficacy. In fact, their Merck superiors and senior management pressured them to participate in the fraud and subsequent cover up when they objected to and tried to stop it,” according to their lawsuit. The feds declined to join the lawsuit, which was unsealed two years ago. Shortly afterwards, the physicians subsequently filed the other lawsuit charge the vaccine was mislabeled and was not the product for which the government or other purchasers paid, which meant that Merck violated the False Claims Act. Both lawsuits note that Merck held an exclusive license to sell a mumps vaccine and its actions discouraged competition. “The ultimate victims here are the millions of children who, every year, are being injected with a mumps vaccine that is not providing them with an adequate level of protection,” the lawsuit filed by the virologists states. Meanwhile, the mumps vaccine was ringing the register at Merck, which reported that sales reached $621 million last year.
Note: Read a CBS News article which shows how Merck literally created a hit list for doctors who opposed use of the deadly drug Vioxx, which was responsible for thousands of deaths. A second CBS article shows how Merck created a fake medical journal to support Vioxx and harassed reporters revealing the truth. For more along these lines, see concise summaries of deeply revealing health corruption news articles from reliable major media sources.
Just weeks before Blackwater guards fatally shot 17 civilians at Baghdad’s Nisour Square in 2007, the State Department began investigating the security contractor’s operations in Iraq. But the inquiry was abandoned after Blackwater’s top manager there issued a threat: “that he could kill” the government’s chief investigator and “no one could or would do anything about it as we were in Iraq.” American Embassy officials in Baghdad sided with Blackwater rather than the State Department investigators as a dispute over the probe escalated in August 2007, the previously undisclosed documents show. The officials told the investigators that they had disrupted the embassy’s relationship with the security contractor and ordered them to leave the country. After returning to Washington, the chief investigator wrote a scathing report to State Department officials documenting misconduct by Blackwater employees and warning that lax oversight of the company, which had a contract worth more than $1 billion to protect American diplomats, had created “an environment full of liability and negligence.” “The management structures in place to manage and monitor our contracts in Iraq have become subservient to the contractors themselves,” the investigator, Jean C. Richter, wrote in an Aug. 31, 2007, memo to State Department officials. “Blackwater contractors saw themselves as above the law,” he said, adding that the “hands off” management resulted in a situation in which “the contractors, instead of Department officials, are in command and in control.”
Note: For more on this, see concise summaries of deeply revealing war crimes news articles from reliable major media sources.
Nearly half of American adults believe the federal government, corporations or both are involved in at least one conspiracy to cover up health information, a new survey finds. Conspiracy theories on everything from cancer cures to cellphones to vaccines are well known and accepted by sizable segments of the population, according to a research letter published this week in JAMA Internal Medicine. The findings reflect "a very low level of trust" in government and business, especially in pharmaceutical companies, says study co-author Eric Oliver, a professor of political science at the University of Chicago. The online survey of 1,351 adults found: • 37% agree the Food and Drug Administration is keeping "natural cures for cancer and other diseases" away from the public because of "pressure from drug companies." • 20% believe health officials are hiding evidence that cellphones cause cancer. • 20% believe doctors and health officials push child vaccines even though they "know these vaccines cause autism and other psychological disorders." • Smaller numbers endorse theories involving fluoride, genetically modified foods and the deliberate infection of African Americans with HIV. • 49% believe at least one of the theories and 18% believe at least three. The beliefs also go along with certain health behaviors, the survey found. Those who believe at least three health conspiracy theories are less likely to use sunscreen, get flu shots or get check-ups and are more likely to use herbal remedies and eat organic foods.
Note: For an intriguing list of 10 major health cover-ups with evidence to back it up, click here.
The FBI has launched an investigation of the Corrections Corporation of America over the company's running of an Idaho prison with a reputation so violent that inmates dubbed it "Gladiator School." CCA has operated Idaho's largest prison for more than a decade, but last year, CCA officials acknowledged it had understaffed the Idaho Correctional Center by thousands of hours in violation of the state contract. CCA also said employees falsified reports to cover up the vacancies. The announcement came after an Associated Press investigation showed CCA sometimes listed guards as working 48 hours straight to meet minimum staffing requirements. The understaffing has been the subject of federal lawsuits and a contempt of court action against CCA. The ACLU sued on behalf of inmates at the Idaho Correctional Center in 2010, saying the facility was so violent that inmates called it "Gladiator School" and that understaffing contributed to the high levels of violence there. In 2012, a Boise law firm sued on behalf of inmates contending that CCA had ceded control to prison gangs so that they could understaff the prison and save money on employee wages, and that the understaffing led to an attack by one prison gang on another group of inmates that left some of them badly injured.
Note: If the above link fails, use this one for the same Associated Press article covering prisons corruption on the website of the UK's Guardian. For more on corruption in the prison-industrial complex, see the deeply revealing reports from reliable major media sources available here.
Consumers are being sold food including mozzarella that is less than half real cheese, ham on pizzas that is either poultry or "meat emulsion", and frozen prawns that are 50% water, according to tests by a public laboratory. The checks on hundreds of food samples, which were taken in West Yorkshire, revealed that more than a third were not what they claimed to be, or were mislabelled in some way. Testers also discovered beef mince adulterated with pork or poultry, and even a herbal slimming tea that was neither herb nor tea but glucose powder laced with a withdrawn prescription drug for obesity at 13 times the normal dose. A third of fruit juices sampled were not what they claimed or had labelling errors. Two contained additives that are not permitted in the EU, including brominated vegetable oil, which is designed for use in flame retardants and linked to behavioural problems in rats at high doses. Experts said they fear the alarming findings from 38% of 900 sample tests by West Yorkshire councils were representative of the picture nationally, with the public at increasing risk as budgets to detect fake or mislabelled foods plummet. In one case, tests revealed that the "vodka" had been made not from alcohol derived from agricultural produce, as required, but from isopropanol, used in antifreeze and as an industrial solvent. Many of the samples were collected from fast-food restaurants, independent retailers and wholesalers; some were from larger stores and manufacturers.
Note: For more on corporate corruption, see the deeply revealing reports from reliable major media sources available here.
On Dec. 23, 1913, President Woodrow Wilson signed the Owen Glass Act, creating the Federal Reserve. As we note its centennial, what has the Fed accomplished during the last 100 years? The stated original purposes were to protect the soundness of the dollar and banks and also to lessen the jarring ups and downs of the business cycle. Oops. Under the Fed’s supervision, boom and bust cycles have continued. Three of them have been severe: the Great Depression, the stagflationary period of 1974-82, and the current “Great Recession.” Bank failures have occurred in alarmingly high numbers. Depending on what measurements are used, the dollar has lost between 95 and 98 percent of its purchasing power. (Amazingly, the Fed’s official position today is that inflation is not high enough, so the erosion of the dollar continues as a matter of policy.) Having failed to achieve its original goals, the Fed also has had a miserable record in accomplishing later goals. The 1970 amendments to the Federal Reserve Act stipulated that the Fed should “promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” In baseball parlance, the Fed has been “0-for-three.” So, what has the Fed accomplished during its century of existence? Well, it has become adept at bailing out mismanaged banks. In the aftermath of the 2008 financial crisis, the Fed orchestrated the big bailout of Wall Street. Politically, the Fed is repugnant. Its chairman is commonly referred to as the second most powerful person in the country. In a democratic republic, should the second most powerful policymaker be unelected?
Note: How remarkable for Forbes to publish an article chastising the Fed! The times are a changin'! For an essay by noted financial researcher Ellen Brown on this occasion, click here. For more on the collusion between government and the biggest banks, see the deeply revealing reports from reliable major media sources available here.
My first year on Wall Street, 1993, I was paid 14 times more than I earned the prior year and three times more than my father's best year. For that money, I helped my company create financial products that were disguised to look simple, but which required complex math to properly understand. That first year I was roundly applauded by my bosses, who told me I was clever, and to my surprise they gave me $20,000 bonus beyond my salary. When I did ask, rather naively, if this was all kosher, I would be assured multiple times that multiple lawyers and multiple managers had approved the sales. One senior trader, consoling me late at night, reminded me, “You are playing in the big leagues now. If a customer wants a red suit, you sell them a red suit. If that customer is Japanese, you charge him twice what it costs. ”Being paid very well also helped ease any of my concerns. Feeling guilty, kid? Here take a big check. I was, for the first time in my life, feeling valued for my math skills. Ego and money are nice salves for any potential feeling of guilt. After a few years on Wall Street it was clear to me: you could make money by gaming anyone and everything. The more clever you were, the more ingenious your ability to exploit a flaw in a law or regulation, the more lauded and celebrated you became. Nobody seemed to be getting called out. No move was too audacious. Traders got more and more audacious, and corruption became more and more diffused through the system. By 2006 you could open up almost any major business, look at its inside workings, and find some wrongdoing.
Note: For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.
Tons of contaminated groundwater from the stricken Fukushima nuclear plant have overwhelmed an underground barrier and are emptying daily into the Pacific, creating what a top regulator has called a crisis. The water contains strontium and cesium, as well as tritium. The plant was already struggling to store hundreds of thousands of tons of contaminated water that flowed through the buildings housing three reactors where [three] meltdowns occurred in 2011. But the contamination in this new groundwater problem is from different sources, Tepco said. The company has admitted that it failed to respond quickly enough to the latest groundwater contamination, saying it was preoccupied with more pressing issues like cooling the damaged reactors. “Tepco appears overwhelmed in dealing with what is a very serious problem,” said Akio Yamamoto, a professor of nuclear engineering at Nagoya University, who serves as outside expert for the Nuclear Regulation Authority, Japan’s nuclear watchdog. Critics contend that the plant has emitted far more radioactive materials than it is saying, based in part on levels of contaminants discovered in the harbor, which are well above safe levels in some places. The contamination appears to be spreading, with tests last month by Tepco showing high levels of tritium and other radioactive elements like strontium starting at other locations near the two other crippled reactors.
Note: Declaring the situation an "emergency", the Japanese government has stepped in to take over control of the response from Tepco. For more on this, click here. For a National Geographic article on what you need to know about the radioactive contamination of the Pacific Ocean by the Fukushima disaster, click here. It reports that scientists have estimated that contaminated seawater could reach the West Coast of the United States in five years or less. For more on the environmental devastation of nuclear power, see the deeply revealing reports from reliable major media sources available here.
Recent news out of China raises the question once again of whether any aspect of the pharmaceutical business can be trusted. First, Chinese authorities announced they were investigating GlaxoSmithKline and other pharma companies for bribing doctors, hospitals and government officials to buy and prescribe their drugs. Glaxo is accused of using a Shanghai travel agency to funnel at least $489 million in bribes. Then the New York Times revealed last week the alarming news that an internal Glaxo audit found serious problems with the way research was conducted at the company’s Shanghai research and development center. Last year Glaxo paid $3 billion to resolve civil and criminal allegations of, among other things, marketing widely used prescription drugs for unapproved treatments and using kickbacks to promote sales. Glaxo is a leader in pharma fraud and wrongdoing, with other industry heavyweights close behind. Over the past decade, whistleblowers and government investigations in the US have exposed a never-ending series of problems by numerous pharma companies in all facets of the industry, starting with fraudulent “research” papers used to bolster marketing and continuing through to the manufacture of contaminated and defective products, the marketing of drugs for unapproved and life-threatening uses and the mispricing of prescription drugs. Pharma ... has paid more than $30.2 billion in civil and criminal penalties to the US and state governments and continues to face more allegations of wrongdoing. The industry – despite huge penalties and a long string of public mea culpas – has a fraud habit that is just too profitable to kick. Finding a cure should be a top priority of regulators worldwide.
Note: For more on pharmaceutical industry corruption, see the deeply revealing reports from reliable major media sources available here.
It's long been suspected that ratings agencies like Moody's and Standard & Poor's helped trigger the meltdown. A new trove of embarrassing documents shows how they did it. Everybody else got plenty of blame: the greed-fattened banks, the sleeping regulators, the unscrupulous mortgage hucksters. But what about the ratings agencies? Thanks to a mountain of evidence gathered for a pair of major lawsuits by the San Diego-based law firm Robbins Geller Rudman & Dowd, ... we now know that the nation's two top ratings companies, Moody's and S&P, have for many years been shameless tools for the banks, willing to give just about anything a high rating in exchange for cash. In incriminating e-mail after incriminating e-mail, executives and analysts from these companies are caught admitting their entire business model is crooked. Ratings agencies are the glue that ostensibly holds the entire financial industry together. Their primary function is to help define what's safe to buy, and what isn't. But the financial crisis happened because AAA ratings stopped being something that had to be earned and turned into something that could be paid for. The Financial Crisis Inquiry Commission published a case study in 2011 of Moody's in particular and discovered that between 2000 and 2007, the agency gave nearly 45,000 mortgage-backed securities AAA ratings. One year Moody's doled out AAA ratings to 30 mortgage-backed securities every day, 83 percent of which were ultimately downgraded. "This crisis could not have happened without the rating agencies," the commission concluded.
Note: This is another great, well researched article by Rolling Stone's Matt Taibbi. Why isn't the major media coming up with anything near the quality of this man's work? For deeply revealing reports from reliable major media sources on financial corruption, click here.
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.