As of Feb 19th, we're $4,000 in the red for 2018. Please donate here to support this vital work.
Subscribe here to our free email list

Financial Media Articles
Excerpts of Key Financial Media Articles in Major Media


Below are highly revealing excerpts of important banking and finance articles reported in the media suggesting a major cover-up. Links are provided to the full articles on major media websites. If any link fails to function, read this webpage. These banking and finance articles are listed by article date. You can also explore the articles listed by order of importance or by date posted. By choosing to educate ourselves on these important issues and to spread the word, we can and will build a brighter future.

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.


Kept out: How banks block people of color from homeownership
2018-02-16, Chicago Tribune/Associated Press
http://www.chicagotribune.com/news/sns-bc-us--reveal-modern-day-redlining-201...

Fifty years after the federal Fair Housing Act banned racial discrimination in lending, African Americans and Latinos continue to be routinely denied conventional mortgage loans at rates far higher than their white counterparts. This modern-day redlining persisted in 61 metro areas even when controlling for applicants' income, loan amount and neighborhood, according to millions of ... records analyzed by Reveal from The Center for Investigative Reporting. Lenders and their trade organizations do not dispute the fact that they turn away people of color at rates far greater than whites, [and] singled out the three-digit credit score ... as especially important in lending decisions. Reveal's analysis included all records publicly available under the Home Mortgage Disclosure Act. Credit score was not included because that information is not publicly available. That's because lenders have deflected attempts to force them to report that data to the government. America's largest bank, JPMorgan Chase & Co., has argued that the data should remain closed off even to academics. At the same time, studies have found proprietary credit score algorithms to have a discriminatory impact on borrowers of color. The "decades-old credit scoring model" currently used "does not take into account consumer data on ... bill payments," Republican Sen. Tim Scott of South Carolina wrote in August. "This exclusion disproportionately hurts African-Americans, Latinos, and young people who are otherwise creditworthy."

Note: For more along these lines, see concise summaries of deeply revealing news articles on financial industry corruption and civil liberties.


Trump Administration Waives Punishment For Convicted Banks, Including Deutsche — Which Trump Owes Millions
2018-01-09, International Business Times
http://www.ibtimes.com/political-capital/trump-administration-waives-punishme...

The Trump administration has waived part of the punishment for five megabanks whose affiliates were convicted and fined for manipulating global interest rates. One of the Trump administration waivers was granted to Deutsche Bank - which is owed at least $130 million by President Donald Trump ... and has also been fined for its role in a Russian money laundering scheme. The waivers were issued in a little-noticed announcement published in the Federal Register. Under laws designed to protect retirement savings, financial firms whose affiliates have been convicted of violating securities statutes are effectively barred from ... managing those savings. However, that punishment can be avoided if the firms manage to secure a special exemption from the U.S. Department of Labor. In late 2016, the Obama administration extended ... one-year waivers to five banks - Citigroup, JPMorgan, Barclays, UBS and Deutsche Bank. Late last month, the Trump administration issued new, longer waivers for those same banks. Leading up to the new waiver for Deustche Bank, Trump’s financial relationship with the firm has prompted allegations of a conflict of interest. In 2016, the Wall Street Journal reported Trump and his companies have received at least $2.5 billion in loans from Deutsche Bank and co-lenders. In 2015, Deutsche Bank pled guilty in the U.S. to wire fraud for its role in the [LIBOR] scandal. Less than two years later ... Deutsche Bank agreed to a $7.2 billion settlement with the Justice Department for misleading investors.

Note: The megabanks again get away with huge manipulations resulting in financial losses for many millions, yet hardly any media focuses on how these banks hardly get a slap on the wrist for their huge criminal offenses. For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the financial industry.


Paradise Papers: US puts sanctions on billionaire over dealings in DRC
2017-12-22, The Guardian (One of the UK's leading newspapers)
https://www.theguardian.com/news/2017/dec/22/paradise-papers-us-sanctions-bil...

The US government has imposed sanctions on the Israeli billionaire Dan Gertler, whose African business dealings were exposed in the Paradise Papers, over “hundreds of millions of dollars’ worth of opaque and corrupt mining and oil deals” in the Democratic Republic of the Congo. In a strongly worded statement, the US president ... placed sanctions on 13 people and companies associated with them, declaring a state of “national emergency with respect to serious human rights abuse and corruption around the world”. In November, the Paradise Papers investigation unveiled new details of Gertler’s mining deals in strife-torn but resource-rich DRC, in particular over a $45m loan in shares to one of his companies from the world’s biggest miner, Glencore. In imposing sanctions on Gertler, the US Office of Foreign Assets Control (OFAC) said the Israeli billionaire’s corrupt dealings had deprived the state coffers of DRC of ... more than $1.36bn in revenues from the underpricing of mining assets that were sold to offshore companies linked to Gertler. Gertler’s involvement in the DRC spans nearly two decades. He was cited by a 2001 UN investigation that said he had given the DRC’s then-president $20m to buy weapons to equip his army against rebel groups in exchange for a monopoly on the country’s diamonds, and a 2013 Africa Progress Panel report said a string of mining deals struck by companies linked to him had deprived the country of more than $1.3bn in potential revenue.

Note: Gertler had close ties with Mark Rich, who was once on the FBI's 10 most wanted list only to later be pardoned by Bill Clinton. This revealing article on Gertler in the UK's Guardian shows corruption and abuse leading to very high places. For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the corporate world.


U.S. Imposes Sanctions on 52 People and Entities for Abuse and Corruption
2017-12-21, New York Times
https://www.nytimes.com/2017/12/21/world/global-magnitsky-act-sanctions.html

The United States imposed sanctions on 52 people and entities Thursday for alleged human rights violations and corruption, a list that included Maung Maung Soe, a top Burmese general cited for an ongoing deadly crackdown on the Rohingya, a Muslim ethnic group. Maj. Gen. Maung Maung Soe was the chief of the Burmese Army’s Western Command during a crackdown that survivors say involved government soldiers stabbing babies, cutting off the heads of boys, gang-raping girls and burning entire families to death. Maj. Gen. Maung Maung Soe is the first high-level Burmese military official to be named in sanctions. “Today, the United States is taking a strong stand against human rights abuse and corruption globally by shutting these bad actors out of the U.S. financial system,” said Steven Mnuchin, the Treasury secretary. Among others penalized on Thursday was Yahya Jammeh, former president of Gambia. Mr. Jammeh created a terror and assassination squad ... that he used to intimidate, interrogate and kill people who threatened him. Benjamin Bol Mel of South Sudan, Dan Gertler, who did business in the Democratic Republic of Congo, and Mukhtar Hamid Shah of Pakistan were also on the list. The sanctions freeze any assets the individuals or entities hold in the United States and also prevent them from using any American financial institution.

Note: Importantly, billionaire Israeli mine kingpin Dan Gertler is on this list. This revealing article on Gertler in the UK's Guardian shows corruption and abuse leading to very high places. For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the corporate world.


MSU Scholars Find $21 Trillion in Unauthorized Government Spending
2017-12-11, MSU Today (Michigan State University's newspaper)
http://msutoday.msu.edu/news/2017/msu-scholars-find-21-trillion-in-unauthoriz...

Earlier this year, a Michigan State University economist, working with graduate students and a former government official, found $21 trillion in unauthorized spending in the departments of Defense and Housing and Urban Development for the years 1998-2015. The work of Mark Skidmore and his team, which included digging into government websites and repeated queries to U.S. agencies that went unanswered, coincided with the Office of Inspector General, at one point, disabling the links to all key documents showing the unsupported spending. Now, the Department of Defense has announced it will conduct the first department-wide, independent financial audit in its history. The Defense Department did not say specifically what led to the audit. But the announcement came four days after Skidmore discussed his team’s findings on USAWatchdog, a news outlet run by former CNN and ABC News correspondent Greg Hunter. Skidmore got involved last spring when he heard Catherine Austin Fitts, former assistant secretary of Housing and Urban Development, refer to a report which indicated the Army had $6.5 trillion in unsupported adjustments, or spending, in fiscal 2015. Given the Army’s $122 billion budget, that meant unsupported adjustments were 54 times spending authorized by Congress. Typically, such adjustments in public budgets are only a small fraction of authorized spending. Skidmore thought Fitts had made a mistake. “Maybe she meant $6.5 billion and not $6.5 trillion,” he said. “So I found the report myself and sure enough it was $6.5 trillion.”

Note: Explore this webpage for additional background on this story. See also a detailed analysis of these missing trillions, which amount to $65,000 per man, woman, and child in the US. And don't miss this highly revealing interview with Prof. Mark Skidmore of Michigan State with even more startling news. Why isn't the major media reporting this huge news?


Has Our Government Spent $21 Trillion Of Our Money Without Telling Us?
2017-12-08, Forbes
https://www.forbes.com/sites/kotlikoff/2017/12/08/has-our-government-spent-21...

On July 26, 2016, the Office of the Inspector General (OIG) issued a report “Army General Fund Adjustments Not Adequately Documented or Supported”. The report indicates that for fiscal year 2015 the Army failed to provide adequate support for $6.5 trillion. Given that the entire Army budget in fiscal year 2015 was $120 billion, unsupported adjustments were 54 times the level of spending authorized by Congress. An appendix to the July 2016 report shows $2 trillion in changes to the Army General Fund balance sheet due to unsupported adjustments. On the asset side, there is $794 billion increase in the Army's Fund Balance with the U.S. Treasury. There is also an increase of $929 billion in the Army's Accounts Payable. What is the source of the additional $794 billion in the Army's Fund Balance? The July 2016 report is not the only such report of unsubstantiated adjustments. Mark Skidmore and Catherine Austin Fitts, former Assistant Secretary of Housing and Urban Development, conducted a search of government websites and found similar reports dating back to 1998. While the documents are incomplete, original government sources indicate $21 trillion in unsupported adjustments have been reported for the Department of Defense and the Department of Housing and Urban Development for the years 1998-2015. [And why] after Mark Skidmore began inquiring about OIG-reported unsubstantiated adjustments, [was] the OIG's webpage, which documented, albeit in a highly incomplete manner, these unsupported "accounting adjustments," ... mysteriously taken down?

Note: Explore this webpage for a brief background to this astounding news. See also a detailed analysis of these missing trillions, which amount to $65,000 per man, woman, and child in the US. And don't miss this highly revealing interview with Prof. Mark Skidmore of Michigan State with even more startling news.


When Unpaid Student Loan Bills Mean You Can No Longer Work
2017-11-18, New York Times
https://www.nytimes.com/2017/11/18/business/student-loans-licenses.html

Few people realize that the loans they take out to pay for their education could eventually derail their careers. But in 19 states, government agencies can seize state-issued professional licenses from residents who default on their educational debts. Another state, South Dakota, suspends driver’s licenses, making it nearly impossible for people to get to work. Firefighters, nurses, teachers, lawyers, massage therapists, barbers, psychologists and real estate brokers have all had their credentials suspended or revoked. Determining the number of people who have lost their licenses is impossible because many state agencies and licensing boards don’t track the information. Public records requests by The New York Times identified at least 8,700 cases in which licenses were taken away or put at risk of suspension in recent years, although that tally almost certainly understates the true number. With student debt levels soaring — the loans are now the largest source of household debt outside of mortgages — so are defaults. Lenders have always pursued delinquent borrowers: by filing lawsuits, garnishing their wages, putting liens on their property and seizing tax refunds. Blocking licenses is a more aggressive weapon, and states are using it on behalf of themselves and the federal government. Tennessee is one of the most aggressive states at revoking licenses. From 2012 to 2017, officials reported more than 5,400 people to professional licensing agencies. Many - nobody knows how many - lost their licenses. Some ... lost their careers.

Note: For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the financial industry.


Podesta Group on the verge of shuttering amid ties to Mueller probe
2017-11-11, CNN News
http://www.cnn.com/2017/11/11/politics/podesta-group-mueller-investigation/in...

One of Washington's most prominent lobbying firms is on the verge of shuttering after becoming ensnared by special counsel Robert Mueller's investigation. Kimberley Fritts, the chief executive of the Podesta Group, told employees during a Thursday staff meeting that the firm would cease to exist at the end of the year. The developments come after the Podesta Group was tied last week to Mueller's indictments of Paul Manafort and Rick Gates, who pleaded not guilty after being charged with failing to file as foreign agents relating to a decade of work they did for ... a pro-Russia political party in the Ukraine. Mueller's special investigation team has also interviewed multiple people from the Podesta Group, which was recruited by Manafort and Gates to work along with another firm. Talk of potentially closing the Podesta Group marks a dramatic downfall of one of K Street's most iconic and well-connected firms. In its heyday, Podesta Group was the largest non-law firm lobbying organization in Washington. Tony Podesta, the firm's founder and chairman, helped fuel the company with work for foreign governments. He and his brother, John, founded the company almost three decades ago. John Podesta chaired Hillary Clinton's 2016 presidential campaign. He left the firm in 1993. Mueller is looking into whether the Podesta Group properly identified to federal authorities its foreign advocacy for ... a Brussels-based non-profit group that federal prosecutors have called a mouthpiece for pro-Russian Ukrainian politicians.

Note: The Podesta brothers were deeply implicated in the Pizzagate affair. Though many believe Pizzagate was just a "conspiracy theory," our careful research shows powerful evidence that the Podestas were indeed involved in a child sex abuse ring. Could it be that behind the curtains, some are taking action against the Podestas for their involvement in these child abuse rings? For some intriguing, yet difficult to verify evidence along these lines, see this webpage.


Paradise Papers Shine Light on Where the Elite Hide Their Money
2017-11-05, New York Times
https://www.nytimes.com/2017/11/05/world/paradise-papers.html

It’s called the Paradise Papers: the latest in a series of leaks made public by the International Consortium of Investigative Journalists shedding light on the trillions of dollars that move through offshore tax havens. The core of the leak, totaling more than 13.4 million documents, focuses on the Bermudan law firm Appleby, a 119-year old company that caters to blue chip corporations and very wealthy people. As with the Panama Papers, the Paradise Papers leak came through ... the German newspaper Süddeutsche Zeitung and was then shared with I.C.I.J., a Washington-based group that won the Pulitzer Prize for reporting on the millions of records of a Panamanian law firm. The release of that trove of documents led to the resignation of one prime minister last year. This week, The New York Times is publishing articles on the Paradise Papers that were reported in cooperation with our I.C.I.J. partners. The predominantly elite clients of Appleby contrast with those of Mossack Fonseca - the company whose leaked records became the Panama Papers - which appeared to be less discriminating in the business it took on. Americans - companies and people - dominate the list of clients. Past disclosures, such as the 2013 “Offshore Leaks” from two offshore incorporators in Singapore and the British Virgin Islands, the 2015 “Swiss Leaks” from a private Swiss bank owned by the British bank HSBC and another leak in 2016 from the Bahamas were dominated by clients not from the United States.

Note: A directory of several New York Times articles detailing specific revelations from the Paradise Papers is available at the link above. In the US, many large companies pay little or no federal taxes, and former tax lobbyists now write the rules on tax dodging. For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the financial industry.


Soros fund manager raped, beat Playboy models, $27M lawsuit alleges
2017-11-03, Fox News
http://www.foxnews.com/us/2017/11/03/playboy-models-among-3-seeking-27m-say-s...

Two Playboy Playmates and a third woman have filed a lawsuit seeking $27 million, alleging a former fund manager for billionaire George Soros raped and beat them in a New York City penthouse described as a dungeon. The three plaintiffs, who were not identified, claim portfolio manager Howie Rubin beat them to the point they needed extensive medical attention, the New York Post reported, citing a lawsuit filed in federal court. “I’m going to rape you like I rape my daughter,” Rubin, a former Bear Stearns trader, yelled out during one of the attacks, according to the lawsuit. It states that Rubin rented out the $8 million penthouse in Manhattan and paid women $2,000 to $5,000 for brutal sex sessions in a side room with ropes, chains and sex toys. The New York Post said it reached out to Rubin, but he declined to comment. John Balestriere, the lawyer who filed the suit, said Rubin gagged, tied up and abused women in the penthouse. Balestriere alleged Rubin punched one woman in the head. In another encounter, Rubin is accused of beating a woman’s “breasts so badly that her right implant flipped,” the lawsuit stated. The suit alleges the woman was paid $20,000 by Rubin to repair the damage. The New York Post report also said Rubin had the women sign non-disclosure agreements. Rubin collaborated with two female fixers and a lawyer who sought to “cover up” his “sexual misconduct and criminal abuse of women and to serve as a cover for his wide-ranging human trafficking scheme,” Balestriere added.

Note: The NY Post article is available here. This may be related to Pizzagate sex abuse rings. For evidence this may be the case, read this speculative article. For more along these lines, see concise summaries of deeply revealing sexual abuse scandal news articles from reliable major media sources.


Malta car bomb kills Panama Papers journalist
2017-10-16, The Guardian (One of the UK's leading newspapers)
https://www.theguardian.com/world/2017/oct/16/malta-car-bomb-kills-panama-pap...

The journalist who led the Panama Papers investigation into corruption in Malta was killed. Daphne Caruana Galizia died on Monday afternoon when her car ... was destroyed by a powerful explosive device. A blogger whose posts often attracted more readers than the combined circulation of the country’s newspapers, Caruana Galizia was recently described by the Politico website as a “one-woman WikiLeaks”. Her most recent revelations pointed the finger at Malta’s prime minister, Joseph Muscat, and two of his closest aides, connecting offshore companies linked to the three men with the sale of Maltese passports and payments from the government of Azerbaijan. Caruana Galizia filed a police report 15 days ago to say that she had been receiving death threats. The journalist posted her final blog on her Running Commentary website at 2.35pm on Monday, and the explosion ... was reported to police just after 3pm. Caruana Galizia ... set her sights on a wide range of targets, from banks facilitating money laundering to links between Malta’s online gaming industry and the Mafia. Over the last two years, her reporting had largely focused on revelations from the Panama Papers, a cache of 11.5m documents leaked from the internal database of the world’s fourth largest offshore law firm, Mossack Fonseca. Her family have filed a court application demanding a change of inquiring magistrate. Investigations into the case are being led by Consuelo Scerri Herrera. But Herrera had come under criticism by Galizia in her blog.

Note: The release of the Panama Papers exposed tax-dodging elites in many countries. There is speculative evidence that the CIA had a hand in releasing these documents. For more along these lines, see concise summaries of deeply revealing financial industry corruption news articles from reliable major media sources.


Wells Fargo shareholder lawsuit can proceed, judge rules
2017-10-05, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/business/article/Wells-Fargo-shareholder-lawsuit-can-pr...

Wells Fargo & Co. executives and directors accused of steering the bank into the worst scandal of its modern history were ordered to defend a lawsuit accusing them of profiting from the creation of millions of fake customer accounts. A San Francisco federal judge ruled this week that shareholders can proceed with a suit alleging the company’s top brass “repeatedly and brazenly” failed to serve Wells Fargo’s best interests. He found the complaint properly laid out evidence showing that executives and directors made false statements about the scheme in the bank’s filings to the Securities and Exchange Commission. The ruling came a day after Sen. Elizabeth Warren ... attacked Wells Fargo Chief Executive Officer Tim Sloan while he testified before Congress. “You should be fired,” Warren said. “You enabled this fake account scam, you got rich off it, and you tried to cover it up.” Last month, U.S. District Judge Jon Tigar ... dismissed insider trading claims under California law against Sloan and Wells Fargo Chief Risk Officer Michael Loughlin, as well as former CEO John Stumpf and former head of community banking Carrie Tolstedt. An independent probe commissioned by the bank concluded in April that senior bank managers failed to heed warnings of spreading sales abuses for more than a decade, treating thousands of fired employees as rogues, and then downplayed the mounting terminations as the board began raising questions.

Note: Read more about the massive fraud perpetrated by Wells Fargo. Steve Glazer, chairman of the California Senate Banking and Financial Institutions Committee, recently compared this bank's actions with the behavior of Enron when its culture of corruption initially came to light. For more along these lines, see concise summaries of deeply revealing banking corruption news articles from reliable major media sources.


Wells Fargo aggressive with consumers, careful with companies
2017-09-12, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfchronicle.com/business/article/Wells-Fargo-aggressive-with-consu...

Wells Fargo’s admission that its employees created up to 3.5 million fraudulent accounts suggests a reckless, out-of-control culture. But the San Francisco banking giant seems to have a split personality of sorts. While branch employees aggressively pressured consumers ... commercial bankers adopted a relatively stingy approach to lending money to companies. That strategy allowed Wells Fargo to avoid the same kind of bad commercial loans that wiped out many banks during the financial crisis a decade ago. Had Wells Fargo applied the same due diligence to consumer banking as it did to commercial banking, the company might have avoided its current troubles. How do we reconcile these reckless/conservative sides of Wells Fargo? For one thing, federal regulators were not exactly keeping a close watch over Wells Fargo’s consumer business. Over the past two decades, the Office of the Comptroller of the Currency, which is charged with protecting consumers, issued just 448 enforcement actions against Wells Fargo, even as the bank’s total assets have soared from nearly $200 billion in 1998 ... to $1.85 trillion today. The sheer size ... of the bank allows different divisions to essentially act like separate companies. That means community and commercial operations can boast completely different strategies and methods of compensating employees. In Wells Fargo’s case, branch employees would receive more pay if they hit aggressive sales goals, prompting them to open fraudulent accounts.

Note: Read more about the massive fraud perpetrated by Wells Fargo. Steve Glazer, chairman of the California Senate Banking and Financial Institutions Committee, recently compared this bank's actions with the behavior of Enron when its culture of corruption initially came to light. For more along these lines, see concise summaries of deeply revealing banking corruption news articles from reliable major media sources.


Why Corrupt Bankers Avoid Jail
2017-07-31, The New Yorker
http://www.newyorker.com/magazine/2017/07/31/why-corrupt-bankers-avoid-jail

In the summer of 2012, a subcommittee of the U.S. Senate released a report. [After] looking into the London-based banking group HSBC, [investigators] discovered that ... the bank had laundered billions of dollars for Mexican drug cartels, and violated sanctions. No criminal charges were filed, and no executives or employees were prosecuted. Instead, HSBC pledged to clean up its institutional culture, and to pay a fine of nearly two billion dollars: the equivalent of four weeks’ profit for the bank. In the years since the mortgage crisis of 2008 ... corporate executives have essentially been granted immunity. As recently as 2006, when Enron imploded, such titans as Jeffrey Skilling and Kenneth Lay were convicted of conspiracy and fraud. Something has changed in the past decade, however, and federal prosecutions of white-collar crime are now at a twenty-year low. As Jesse Eisinger, a reporter for ProPublica, explains in a new book ... a financial crisis has traditionally been followed by a legal crackdown, because a market contraction reveals all the wishful accounting and outright fraud that were hidden when the going was good. After the mortgage crisis, people in Washington and on Wall Street expected prosecutions. Eisinger reels off a list of potential candidates for criminal charges: Countrywide, Washington Mutual, Lehman Brothers, Citigroup, A.I.G., Bank of America, Merrill Lynch, Morgan Stanley. Although fines were paid ... there were no indictments, no trials, no jail time.

Note: For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the financial industry.


Wells Fargo charged 570,000 customers for auto insurance they didn’t need
2017-07-28, Washington Post
https://www.washingtonpost.com/news/business/wp/2017/07/28/wells-fargo-charge...

Wells Fargo acknowledged Friday that for six years about 570,000 of its customers were charged for auto insurance they didn’t need, potentially driving some to default on their loan and have their cars repossessed. The San Francisco bank said it would start refunding about $80 million, or about $140 each, to customers next month. The revelation quickly sparked a backlash from lawmakers still angry after Wells Fargo admitted last year that thousands of its employees had created millions of fake credit card and bank accounts for customers without their knowledge. “No wonder so many hard-working Americans believe the system is rigged against them in Wall Street’s favor,” Sen. Sherrod Brown, the ranking Democrat on the Banking Committee, said in a statement. Sen. Elizabeth Warren ... renewed her call for the Federal Reserve to force Wells Fargo’s board of directors to resign. “There are surely deep ... problems at a bank when it opens millions of fake customer accounts and charges nearly a million customers for a financial product they don’t need,” Warren said in a statement. “The Wells Fargo Board is ultimately responsible for that failure.” Wells Fargo said the most recent scandal is centered on its auto lending business. Customers’ loan contracts require them to maintain auto insurance and allow the bank to buy it for them if there is no evidence that the customers have a policy, the bank said. But ... customers were being charged for auto insurance premiums even though they already had another policy.

Note: Read more about the massive fraud perpetrated by Wells Fargo. Steve Glazer, chairman of the California Senate Banking and Financial Institutions Committee, recently compared this bank's actions with the behavior of Enron when its culture of corruption initially came to light. For more along these lines, see concise summaries of deeply revealing banking corruption news articles from reliable major media sources.


Newly Released Documents Show Government Misled Public on Fannie/Freddie Takeover
2017-07-25, Rolling Stone
http://www.rollingstone.com/politics/features/taibbi-government-misled-public...

In August 2012, [the US] unilaterally changed the terms of the bailout of Fannie Mae and Freddie Mac. The government originally insisted on a 10 percent annual dividend in exchange for what ultimately became a $187 billion rescue. In 2012, the government quietly changed that 10 percent deal to one in which the state simply seized all profits. The press paid almost no attention to this event, [even though] it was one of the most important decisions of the bailout era. Fannie Mae and Freddie Mac were two of the biggest companies on earth, and held about $5 trillion in mortgage debt. They had gone bust during the crash years. But by the summer of 2012 ... they were about to start making [enormous piles of] money again. The government has always insisted it didn't know this. Officials have insisted that they needed 100 percent of Fannie and Freddie's profits because ... Fannie and Freddie would otherwise be unable to pay back what they owed. But documents just released in a court case show that the government privately believed just the opposite before it made its historic decision. [One key document] concluded that the government would end up getting more through the "revenue sweep" than it would ... if "the 10% [dividend] was still in effect." The documents that came out this week were released in a lawsuit brought by Fannie and Freddie shareholders who believe that the government stole billions of dollars in profits from them.

Note: For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the financial industry.


College Was Once Free and For the Public Good—What Happened?
2017-07-20, Yes! Magazine
http://www.yesmagazine.org/new-economy/college-was-once-free-and-for-the-publ...

Among politicians, college administrators, educators, parents and students, college affordability seems to be seen as a purely financial issue. The roots of the current student debt crisis are neither economic nor financial in origin, but predominantly social. In 2012, more than 44 million Americans were still paying off student loans. And the average graduate in 2016 left college with more than $37,000 in student loan debt. Student loan debt has become the second-largest type of personal debt among Americans. From 1995 to 2015, tuition and fees at 310 national universities ... rose considerably, increasing by nearly 180 percent at private schools and more than 225 percent at public schools. During the 19th century, college education in the United States was offered largely for free. College education was considered a public good. Students who received such an education would put it to use in the betterment of society. The perception of higher education changed dramatically [as] private colleges began to attract more students from upper-class families. In 1927, John D. Rockefeller began campaigning for charging students the full cost it took to educate them. Further, he suggested that students could shoulder such costs through student loans. Tuition - and student loans - thus became commonly accepted aspects of the economics of higher education. If the United States is looking for alternatives to what some would call a failing funding model for college affordability, the solution may lie in looking further back than the current system.

Note: According to former US Secretary of Labor Robert Reich, the sharply increasing cost of a college education serves to redistribute wealth from the poor to the rich. For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.


How Obama’s Failure To Prosecute Wall Street Set The Stage For Trump’s Win
2017-07-11, Huffington Post
http://www.huffingtonpost.com/entry/chickenshit-club_us_5963fcc6e4b005b0fdc7bacb

As president, Barack Obama oversaw a civil rights renaissance. But his failure to prosecute Wall Street executives for causing the collapse of the housing market ushered in an era of populist rage ... according to Jesse Eisinger’s new book, The Chickenshit Club. “If they had, the history of the country would be different,” Eisinger, a veteran financial reporter at ProPublica whose investigation on shady crisis-era Wall Street practices won a Pulitzer Prize, [said]. “There would be a sense of accountability after the crisis, the reforms would be tougher.” The book traces Department of Justice impotence on corporate crime back two decades. Changes to the way the Justice Department treated white collar crime came into sharp relief after the 2007 financial crisis. [A] Corporate Fraud Task Force [created in] 2002 boasted nearly 1,300 fraud convictions by the time Obama replaced it in 2009 with the Financial Fraud Enforcement Task Force. The new entity [lacked] the focus or prosecutorial muscle of its predecessor. The first stages of a corporate criminal probe are typically carried out by a law firm hired by the company under investigation. “The great secret to corporate criminal prosecution is that we have privatized and outsourced it to the companies themselves,” Eisinger said. “The company is going to be studiously incurious about following investigative threads that might lead to the CEO or board rooms. Instead, they point the finger at a middle manager or someone expendable, and that’s the person who gets indicted by the general government.”

Note: The revolving door between Washington and Wall Street leads to corruption in government and in the financial industry.


Special Report: How the Federal Reserve serves U.S. foreign intelligence
2017-06-26, Reuters
https://www.reuters.com/article/us-fed-accounts-intelligence-specialrepo/spec...

The Federal Reserve’s little-known role housing the assets of other central banks comes with a unique benefit to the United States: It serves as a source of foreign intelligence for Washington. Senior officials from the U.S. Treasury and other government departments have turned to these otherwise confidential accounts several times a year to analyze the asset holdings of the central banks of Russia, China, Iraq, Turkey, Yemen, Libya and others, according to more than a dozen current and former senior Fed and Treasury officials. The U.S. central bank keeps a tight lid on information contained in these accounts. But according to the officials interviewed by Reuters, U.S. authorities regularly use a “need to know” confidentiality exception in the Fed’s service contracts with foreign central banks. Some 250 foreign central banks and governments keep $3.3 trillion of their assets at the Federal Reserve Bank of New York, about half of the world’s official dollar reserves, using a service advertised in a 2015 slide presentation as “safe and confidential.” Other major central banks and some commercial banks offer similar services. But only the Fed offers direct access to U.S. debt markets and to the world’s reserve currency, the dollar. In all, the people interviewed by Reuters identified seven instances in the last 15 years in which the accounts gave U.S. authorities insights into the actions of foreign counterparts or market movements, at times leading to a specific U.S. response.

Note: It's quite telling that no other major media picked up this important piece. For more along these lines, see concise summaries of deeply revealing news articles on financial industry corruption and the disappearance of privacy.


Tax evaders exposed: why the super-rich are even richer than we thought
2017-06-14, The Guardian (One of the UK's leading newspapers)
https://www.theguardian.com/inequality/2017/jun/14/tax-evaders-exposed-why-su...

Tax records are invaluable for the study of economic inequality. Graphs published on the World Wealth and Income Database, for example, show just how ... this information can inform the public debate. The top 1% income share is now closely scrutinised by journalists and policymakers. But if the rich dodge taxes more than others, tax records will underestimate inequality. The key data source used in rich countries to study tax evasion is random tax audits – but these audits do not capture tax evasion by the very wealthy. In our recent study, however, we exploited a massive trove of data leaked from HSBC Switzerland, the so-called HSBC files, to fill this gap. We also made use of the Panama Papers, which last year revealed the identity of the shareholders of shell companies created by the Panamanian firm Mossack Fonseca. Just as with HSBC, this leak is valuable as it can be seen as a random event and involves a prominent provider of offshore financial services. We combined random audits with these new sources of information to shed light on who really evades taxes. The higher one moves up the wealth distribution, the higher the probability of hiding assets. So what are the consequences for inequality? At the very top of the pyramid, it is much greater than previously estimated. In Norway, where the available wealth data is particularly detailed, the super-wealthy appear to be 30% wealthier than previously though. The share of wealth owned by the top 0.1% increases from 8% to 10%.

Note: For more along these lines, see concise summaries of deeply revealing news articles on income inequality and financial industry corruption.


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.