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Financial News Articles
Excerpts of key news articles on banking and finance


Below are key excerpts of little-known, yet highly revealing news articles on banking and finance from the major media. Links are provided to the full news articles for verification. If any link fails to function, read this webpage. These articles on banking and finance are listed by order of importance. You can also explore them ordered by the date of the article or by the date posted. By choosing to educate ourselves, we can build a brighter future.


Note: Explore our full index to revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.


Coruscating criticism of the free market ideology of the IMF
2001-04-27, BBC News
http://news.bbc.co.uk/2/hi/events/newsnight/1312942.stm

GREG PALAST: Protesters say that what we have here is a conspiracy - the World Bank, IMF and World Trade Organisation don't help the poor of the world, they crush them. Well, the bosses are here today, let's ask them. Joseph Stiglitz was chief economist of the World Bank - he should know. He was in the meetings when the World Bank and IMF met to decide the fate of nations. JOSEPH STIGLITZ: They were making the countries worse off. They'll take a strong position on petty larceny and petty theft, but on grand larceny, they'll look the other way. PALAST: The insider says there's a "one-size-fits-all" plan. Every nation gets the same exact four-step programme to the free market paradise. Step one - freedom for hot money. Step two - freedom to increase prices. Step three - free trade for all. Step four, where it all begins, freedom to privatise everything. Insiders saw how it worked in Russia. JOSEPH STIGLITZ: That was the extreme case. You turned over these assets to these oligarchs at a time when the government didn't have enough money to pay pensions to old people. It turned over billions of dollars to a few oligarchs for a fraction of the value of those assets. When it comes to corruption in Russia, they were willing to turn the other way. The IMF and the US Treasury actually almost encouraged it.

Note: To watch the eight-minute video of this BBC clip, click here. For a powerful summary of John Perkins book describing this process in detail, click here. Perkins say he was hired to use the big international banks' money to corrupt dictators and enrich the coffers of the biggest multinational corporations.


Russia's Move To Gold May Jolt Your Company
2022-05-02, Forbes
https://www.forbes.com/sites/zengernews/2022/05/02/russias-move-to-gold-may-j...

Suffering from U.S. and EU sanctions, Russia made a surprise move–its central bank fixed the price of 5,000 rubles to a gram of gold. Few Western investors or executives noticed. Then, Russia ... announced that it would require payment for oil, natural gas and other of its significant exports in rubles. "What the Russians did was a genius," explains Jack Bouroudjian, former president of Commerce Bank in Chicago. "It forces people to go to the Russian central bank and pay gold to get rubles to make the transactions." The ruble had been trading in the range of 70 to 80 for a U.S. dollar. After the sanctions, it plummeted to 120. "Now the ruble basically recovered, trading 80 rubles to the dollar. And it's because of the way they pegged the ruble to gold." U.S. companies that have either international suppliers or customers could be jolted by Russia's golden move. Overseas business partners may need to barter gold for rubles to pay for inputs, like energy, minerals or fertilizers, and therefore demand that their U.S. counterparts pay in rubles or bullion. Additionally, American firms may need to acquire a stack of rubles to pay for their own inputs for foreign-based factories, warehouses or raw materials. Russia isn't alone in its desire. "China has been explicit" in its desire to displace the dollar and make the yuan more central. China is taking preliminary measures to defend their state-owned assets against financial sanctions similar to those the U.S. launched against Russia.

Note: For more along these lines, see concise summaries of deeply revealing news articles on government corruption from reliable major media sources.


Banks have been ripping off Americans for too long.
2019-05-17, CNN News
https://www.cnn.com/2019/05/17/perspectives/bernie-sanders-loan-shark-prevent...

The Federal Reserve recently reported that about half of Americans have virtually no wealth at all, with four in 10 unable to afford a $400 emergency expense. That means that if their car breaks down or their child gets sick, they have to charge those expenses to a credit card. And when they do that, they get ripped off — big time. Despite the fact that banks can borrow money from the Fed at less than 2.5%, the median credit card interest rate ... is now over 21%. Last year, Wall Street banks made $113 billion in credit card interest alone, up by nearly 50% in just five years. In other words, while working class Americans pay outrageously high interest rates, Wall Street banks get rich. And if you live in a low-income community without a bank or cannot get a credit card, what do you do when you need to borrow money? You may have to turn to a predatory payday lender where the average interest rate on an annual basis is a jaw-dropping 391%. When banks and payday lenders charge these unconscionably high interest rates, they are not engaged in the business of making credit available. They are involved in extortion. We need a national usury law that caps interest rates ... at 15%. And that's exactly what the legislation I introduced with Representative Alexandria Ocasio-Cortez would do. Under our Loan Shark Prevention Act, we would make sure that no bank or store in America could charge an interest rate higher than 15%. 88% of Americans support a cap on credit card interest rates.

Note: The above was written by Senator Bernie Sanders. For more along these lines, see concise summaries of deeply revealing news articles on financial industry corruption and income inequality.


Just 2% of the richest Americans had their taxes audited in 2019, down from 16% in 2010
2022-05-17, CNBC News
https://www.cnbc.com/2022/05/17/super-wealthy-irs-tax-audits-plunge-over-deca...

The audit rate for Americans earning more than $5 million a year plunged to just over 2% in 2019 from over 16% in 2010, according to a recent report from the Government Accountability Office, a federal watchdog. The report estimated that taxpayers underreported their income tax by a combined $245 billion a year between 2011 and 2013, and said that "taxpayers are more likely to voluntarily comply with the tax laws if they believe their return may be audited." The main reason for the decline, according to the report, is a lack of IRS funding. In fiscal year 2021, the agency's budget was $11.9 billion – $200 million less than its 2010 budget. The IRS also has seen its staffing levels fall to the same levels as 1973. The decline in funding and auditors means that taxpayers, and especially the top earners, are far less likely to get caught underpaying their taxes than a decade ago. Overall audit rates for American taxpayers fell to 0.2% in 2019 from 0.9% in 2010. The wealthy are still audited at a higher rate than the general taxpayer population. Yet their audit rates have declined at a much higher rate. The audit rate for taxpayers earning between $5 million and $10 million fell to 1.4% from 13.5%. Those earning more than $10 million saw their audit rate fall to 3.9% in 2019 from 21.2% in 2010, while audit rates for $10 million-plus earners ticked up slightly for the 2017 and 2018 tax years due to a Treasury Department mandate to impose audit rates of at least 8% on those making $10 million or more.

Note: For more along these lines, see key news articles on the financial industry from reliable major media sources.


How a Chase Bank Chairman Helped the Deposed Shah of Iran Enter the U.S.
2019-12-29, New York Times
https://www.nytimes.com/2019/12/29/world/middleeast/shah-iran-chase-papers.html

40 years ago, a worn-out white Gulfstream II jet descended over Fort Lauderdale, Fla., carrying a regal but sickly passenger almost no one was expecting. Aboard were a Republican political operative, a retinue of Iranian military officers ... and Mohammed Reza Pahlavi, the newly deposed shah of Iran. The only one waiting to receive the deposed monarch was a senior executive of Chase Manhattan Bank, which had not only lobbied the White House to admit the former shah but had arranged visas for his entourage. Less than two weeks later, on Nov. 4, 1979, vowing revenge for the admission of the shah to the United States, revolutionary Iranian students seized the American Embassy in Tehran and then held more than 50 Americans — and Washington — hostage for 444 days. The shah, Washington’s closest ally in the Persian Gulf, had fled Tehran in January 1979. The shah sought refuge in America. But President Jimmy Carter ... refused him entry for the first 10 months of his exile. Chase Manhattan Bank and its well-connected chairman worked behind the scenes to persuade the Carter administration to admit the shah, one of the bank’s most profitable clients. For Mr. Carter, for the United States and for the Middle East it was an incendiary decision. The ensuing hostage crisis enabled Ayatollah Ruhollah Khomeini to consolidate his theocratic rule, started a four-decade conflict between Washington and Tehran ... and helped Ronald Reagan take the White House.

Note: More information is available in this 1991 New York Times article and this article. For more along these lines, see concise summaries of deeply revealing news articles on government corruption from reliable major media sources.


Major funds exposed to companies allegedly engaged in Uyghur repression in China
2022-11-23, The Guardian (One of the UK's Leading Newspapers)
https://www.theguardian.com/world/2022/nov/23/major-pension-funds-exposed-com...

Many of the world's largest asset managers and state pension funds are passively investing in companies that have allegedly engaged in the repression of Uyghur Muslims in China, according to a new report. The report, by UK-based group Hong Kong Watch and the Helena Kennedy Centre for International Justice at Sheffield Hallam University, found that three major stock indexes provided by MSCI include at least 13 companies that have allegedly used forced labour or been involved in the construction of the surveillance state in China's Xinjiang region. In recent years, China has come under increased scrutiny over what the UN has called "serious human rights violations" against Uyghur Muslims in the region, including systemic discrimination, mass arbitrary detention, torture, and sexual and gender-based violence. The report includes a list of major asset managers, including BlackRock, HSBC and Deutsche Bank among others, exposed to index funds that include companies accused of engaging in labour transfers and the construction of repressive infrastructure in the region. It found public pension funds across the UK, Canada and the US and funds in New Zealand and Japan exposed by the investments. "So many people's pensions, retirement funds and savings are invested passively because, as average consumers, we don't have time to investigate each and every investment," said Laura Murphy, one of the report's authors and professor of human rights and contemporary slavery at Sheffield Hallam University.

Note: Read an eye-opening article about the shocking human rights violations happening to the Uyghur people under the auspices of the Chinese government. For more along these lines, see concise summaries of deeply revealing news articles on financial system corruption from reliable major media sources.


How May Edwards became the forgotten whistleblower
2021-01-08, Washington Post
https://www.washingtonpost.com/lifestyle/media/may-edwards-treasury-buzzfeed-...

By the time Natalie Mayflower Sours Edwards stood before Judge Gregory Woods in a courtroom in Lower Manhattan last month, she had lost her job, her car, her home and had spent nearly three years on supervised release, awaiting a likely prison sentence. Her family had come to watch the hearing, and so had the BuzzFeed reporter, Jason Leopold, to whom she had leaked more than 2,000 sensitive government documents. She explained how she had tried to go through proper whistleblower channels when she witnessed corruption within the Treasury Department and did not hide that she had also gone to the press. "I could not stand by aimlessly," she said, "as this would have been a violation of my oath of office, which is also a federal crime." She was sentenced to six months in federal prison. On Oct. 29, 2017, BuzzFeed published the first in a series of scoops by Leopold, based on leaks from Edwards – then a senior official in the Treasury Department's division of financial crimes, known as FinCEN. The story revealed the existence of 13 suspicious wire transfers involving offshore companies connected to Donald Trump's former campaign manager Paul Manafort, totaling more than $3 million. At her sentencing, Judge Woods described Edwards's leaks as "intentional" and "reckless." But [Mark] Schoofs, of BuzzFeed, recently called upon Biden to pardon Edwards, who "did more to bring transparency to the global financial system than almost anyone else in recent memory," he wrote in the New York Times.

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


Another Housing Crisis Ahead? New Book, 'Homewreckers,' Says It Could Happen
2019-10-15, San Francisco Chronicle (San Francisco's leading newspaper)
https://www.sfgate.com/realestate/article/Another-Housing-Crisis-Ahead-New-Bo...

More than 10 years after the housing crash that devastated the economy, people are still debating just what happened. Although the economy and the housing market have made a comeback, homeownership remains low. Aaron Glantz, a prize-winning investigative journalist ... set out to explain why, in "Homewreckers: How a Gang of Wall Street Kingpins, Hedge Fund Magnates, Crooked Banks, and Vulture Capitalists Suckered Millions Out of Their Homes and Demolished the American Dream." Eight million Americans lost their homes in the bust. Where did those homes go? Those houses didn’t just disappear. Who won, when everyone else lost? The people who won - a small group of businessmen who pounced to seize thousands of homes and made billions of dollars - they’re the “homewreckers.” But even though the housing bust is over, the nation’s homeownership rate is at its lowest in 50 years, and continues to go down. It helps explain why people feel so uneasy. As long as the unemployment rate is low and people have jobs and they can afford rents, the financial market is secure. If people lose their jobs, what’s going to happen? We could be back in another housing bust. Right now there’s a real crisis of affordability. People think we don’t have enough inventory because we haven’t built enough houses. Only 10 years ago, our country was awash in real estate. We have to ask ourselves if we really have a housing shortage, or if we have rigged the market so it only benefits a few of the players.

Note: For more along these lines, see concise summaries of deeply revealing news articles on income inequality from reliable major media sources.


'The level of sneakiness with Americans hiding money abroad is staggering'
2022-07-22, Yahoo News
https://finance.yahoo.com/news/patrick-radden-keefe-americans-hiding-money-ab...

Whether dodging taxes or legal peril, wealthy Americans often succeed in concealing assets from the government by hiding their money in offshore bank accounts. Research from the IRS and a group of economists last year found that the top 1% of earners in the U.S. neglect to report 20% of their income – and that random audits almost never detect offshore accounts. Tax havens like Switzerland or the Cayman Islands have traditionally offered Americans a place to hide their assets because they fiercely guard financial privacy and have minimal to no taxes. Often, they also have laws that inhibit scrutiny from foreign tax officials. Prior to his latest book, [author Patrick Radden] Keefe published "Empire of Pain," which chronicled the billionaire Sackler family's connection to the nation's opioid epidemic. The Sacklers, the notorious family that owned the now bankrupt Purdue Pharma, reportedly have much of their wealth hidden in offshore accounts. An audit commissioned by Purdue showed the family withdrew more than $10 billion from their company during the opioid crisis, CNN reported in October 2020. They began drawing especially large amounts of money from the firm after paying $600 million in a 2007 plea deal with the Justice Department for misleading physicians and consumers about the opioid OxyContin, CNN reported. "The kind of sophistication of the whole industry of financial dissimulation ... such that nobody can put their hands on the money, is really interesting." Keefe told Yahoo Finance.

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 financial industry corruption news articles from reliable major media sources.


This tax loophole costs $180bn a decade.
2021-12-14, The Guardian (One of the UK's leading newspapers)
https://www.theguardian.com/commentisfree/2021/dec/14/carried-interest-tax-lo...

Remember the "carried interest" loophole that lets hedge fund executives and private equity managers – among the wealthiest people in America – pay a tax rate no higher than most Americans? It's a pure scam. They get the tax break even though they invest other peoples' money rather than risk their own. Barack Obama promised to get rid of the loophole. He failed. So, remarkably, did Donald Trump. Now that Democrats are trying to find ways to finance President Biden's Build Back Better package, you might think that the carried interest loophole would be high on their list. After all, closing it could raise $180bn over 10 years. Think again. The loophole – which treats the earnings of private equity managers and venture capitalists as capital gains, taxed at a top rate of just 20%, instead of income, whose top tax rate is 37% – remains as big as ever. Bigger. Influential Democrats, such as House ways and means committee chair Richard Neal, argue that closing the loophole would hobble the private equity industry, and, by extension, the US economy. The truth is there's zero economic justification for retaining this loophole. The sole reason the loophole survives even during Democratic Congresses, is fierce lobbying by the private equity industry – and the dependence of too many Democrats on campaign funding from the partners of private equity and hedge funds. The private equity industry ... has contributed hundreds of millions of dollars to congressional campaigns.

Note: For more along these lines, see concise summaries of deeply revealing news articles on government corruption from reliable major media sources.


Here's what you need to know about impact investing, where returns are not the only reward
2020-11-18, CNBC News
https://www.cnbc.com/2020/11/18/heres-what-y-impact-investing-where-returns-a...

Growing rapidly within the socially responsible investing landscape is the world of so-called impact investing, which deploys your money more directly toward solving societal problems. Largely executed through direct investing platforms, this approach addresses specific problems, such as alleviating poverty in certain communities or reducing pollution. These investments are designed to generate specific, positive and measurable environmental, social and/or good governance outcomes, oftentimes with market-rate financial returns, said Michael Kramer, managing partner of Natural Investments in Kona, Hawaii. Furthermore, outcomes can have a local or a societal focus. "It's very solution focused, very proactive – often investing in innovations, and supporting social entrepreneurs and socially focused start-ups," he said. Retail investors do have some opportunities to participate in impact investing, along with their accredited counterparts. Two of the most accessible, according to Kramer, are direct debt – i.e., investing in certificates of deposit and other loan instruments sponsored by socially focused lending institutions, such as community development financial institutions (privately owned banks that invest in struggling communities) – and peer-to-peer micro-lending platforms such as Kiva, which enable individuals to invest directly in small businesses worldwide. Another option for the retail market is to use Calvert Impact Capital's Community Investment Notes instead of traditional CDs.

Note: Explore a treasure trove of concise summaries of incredibly inspiring news articles which will inspire you to make a difference.


California Just Legalized Public Banks. Will the Rest of the Nation Follow Suit?
2019-10-03, Yes! Magazine
https://www.yesmagazine.org/new-economy/california-public-banking-law-20191003

The Standing Rock movement in 2016 brought together Indigenous activists from across the nation to fight against the Dakota Access Pipeline. One of the demands of this movement included divestment from Wells Fargo, a bank that was funding development of the pipeline. This brought into the spotlight ... big for-profit banks that the government uses to invest public money into Wall Street, rather than local communities. Some of those investments include the fossil fuel industry, private prisons, immigrant detention centers, and more. The divestment movement is mostly about getting those government investments ... out of the big banks. The question then becomes where to put them. Some ... say the answer is public banking. In September, the California State Legislature passed Assembly Bill 857, a law that would allow a regulatory framework for public banking in the state. This would allow the establishment of banks that hold the government’s money and include socially responsible charters. Debbie Notkin, who works with the California Public Banking Alliance, says that by law, all corporations, which includes private banks, are legally obligated to maximize profit. Public banks are not held to this expectation, however, and are instead mandated to serve their communities. Community investments have unlimited possibilities, including affordable housing, saving people from foreclosure, making student loans more affordable, and creating more infrastructure to defend against the effects of climate change.

Note: Ellen Brown is a dedicated researcher who has promoted public banks for years. Check out her excellent work on her website at https://ellenbrown.com. Explore a treasure trove of concise summaries of incredibly inspiring news articles which will inspire you to make a difference.


The Pentagon’s Bottomless Money Pit
2019-03-17, Rolling Stone
https://www.rollingstone.com/politics/politics-features/pentagon-budget-myste...

Despite being the taxpayers’ greatest investment - more than $700 billion a year - the Department of Defense has remained an organizational black box throughout its history. It’s repelled generations of official inquiries, the latest being an audit three decades in the making, mainly by scrambling its accounting into such a mess that it may never be untangled. Ahead of misappropriation, fraud, theft, overruns, contracting corruption and other abuses that are almost certainly still going on, the Pentagon’s first problem is its books. It’s the world’s largest producer of wrong numbers. At the tail end of last year, the Department of Defense finally completed an audit. At a cost of $400 million, some 1,200 auditors charged into the jungle of military finance, but returned in defeat. They were unable to pass the Pentagon or flunk it. They could only offer no opinion, explaining the military’s empire of hundreds of acronymic accounting silos was too illogical to penetrate. Twenty-nine years ago, in 1990, Congress ordered all government agencies to begin producing audited financial statements. In 2011, [the Pentagon] finally agreed to be ready by 2017, which turned into 2018. If and when the defense review is ever completed, we’re likely to find ... the military’s losses and liabilities hidden in Enron-like special-purpose vehicles, assets systematically overvalued, monies Congress approved for X feloniously diverted to Program Y, contractors paid twice, parts bought twice, repairs done unnecessarily and at great expense, and so on.

Note: Read more about the Pentagon's massive accounting fraud in this article. Read a 2017 article documenting an investigation which found $21 Trillion unaccounted for in government coffers. Then read summaries of several major media articles showing the Pentagon's blatant lies and disregard for accounting. For more along these lines, see concise summaries of deeply revealing news articles on military corruption from reliable major media sources.


Ex-Vatican auditor sues, threatens to expose financial mismanagement
2022-11-10, Washington Post
https://www.washingtonpost.com/religion/2022/11/10/vatican-finances-lawsuit-m...

A former Vatican financial auditor has filed suit against the Vatican Secretariat of State, demanding the Catholic Church pay for damage to his reputation that he alleges followed his unceremonious firing in 2017. Libero Milone was hired in 2015 by Pope Francis to look into the notoriously convoluted and troubled finances of Vatican departments, as part of continuing financial reforms begun by Pope Benedict XVI. Only two years later, the Vatican announced that Milone had resigned in the face of accusations of embezzlement and of spying. Cardinal Angelo Becciu told reporters that the auditor "went against all rules and was spying on the private lives of his superiors and staff, myself included." Milone called the cardinal "a liar." Now, Milone says, he is ready to share proof of the financial mismanagement he said he witnessed at Vatican-owned hospitals and in the church bureaucracy. Milone framed his firing as a battle between "the Middle Ages and modernity" and called out "the small mafia at the Vatican" that was offended by his findings of lapses in the Catholic institution's finances, including "many cases of rule violations, improper predisposition of accounting records, incorrect registrations." He said he has proof that several other Vatican offices concealed transactions or obstructed auditors' attempts to see real estate and investment portfolios. He also pointed to significant anomalies in the management of funds at the troubled Catholic pediatric hospital Bambino GesĂą.

Note: In 2012, leaked documents revealed that the Vatican Bank was used for money laundering. For more along these lines, see concise summaries of deeply revealing news articles on financial corruption from reliable major media sources.


The Fed Likes to Tout its Independence, So Why are Big Banks Lobbying It?
2022-10-26, The Intercept
https://theintercept.com/2022/10/26/federal-reserve-bank-lobby/

The Federal Reserve, far from the independent institution it often touts itself as, is under intense pressure at all times from massive commercial banks and other financial institutions advocating for favorable regulations, according to federal lobbying disclosures reviewed by The Intercept, as well as interviews with former Fed and other finance employees. The Federal Reserve has come under scrutiny in recent months for its aggressive interest rate hikes. The Fed's own research has warned that its aggressive policy mirrors a similar one that caused a "severe recession" under Paul Volcker in the 1980s. Even the United Nations ... recently warned that the Fed's rate hikes risk "inflicting worse damage than the financial crisis in 2008 and the COVID-19 shock in 2020." Besides setting monetary policy, the Fed is also tasked with regulating commercial banks. The intense lobbying the Fed is subjected to is targeted at these banking regulations. Paid lobbyists make their case on behalf of massive financial corporations in the same fashion as K Street lobbyists hawking their wares to members of Congress. In 2022 alone, over 120 groups reported lobbying the Fed on issues ranging from credit card fees to cryptocurrency to sprawling monetary policy initiatives such as mortgage finance. Postings on the Federal Reserve website in the past year record meetings with Discover Financial, Student Loan Servicing Alliance, National Bankers Association, Capital One, JPMorgan Chase, Morgan Stanley, and Goldman Sachs.

Note: For more along these lines, see concise summaries of deeply revealing news articles on financial system corruption from reliable major media sources.


Pandora Papers: Secret wealth and dealings of world leaders exposed
2021-10-03, BBC News
https://www.bbc.com/news/world-58780465

The secret wealth and dealings of world leaders, politicians and billionaires has been exposed in one of the biggest leaks of financial documents. Some 35 current and former leaders and more than 300 public officials are featured in the files from offshore companies, dubbed the Pandora Papers. They reveal the King of Jordan secretly amassed Ł70m of UK and US property. They also show how ex-UK PM Tony Blair and his wife saved Ł312,000 in stamp duty when they bought a London office. The couple bought an offshore firm that owned the building. The leak also links Russian President Vladimir Putin to secret assets in Monaco, and shows the Czech Prime Minister Andrej Babis - facing an election later this week - failed to declare an offshore investment company used to purchase two villas for Ł12m in the south of France. It is the latest in a string of leaks over the past seven years, following the FinCen Files, the Paradise Papers, the Panama Papers and LuxLeaks. The examination of the files is the largest organised by the International Consortium of Investigative Journalists (ICIJ), with more than 650 reporters taking part. Some figures are facing allegations of corruption, money laundering and global tax avoidance. But one of the biggest revelations is how prominent and wealthy people have been legally setting up companies to secretly buy property in the UK. The documents reveal the owners of some of the 95,000 offshore firms behind the purchases.

Note: Read about the Panama Papers leak that previously shed light on the tax havens of the elite. For more along these lines, see concise summaries of deeply revealing news articles on financial corruption and income inequality from reliable major media sources.


America used to regulate business. Now government subsidises it
2022-08-21, The Guardian (One of the UK's Leading Newspapers)
https://www.theguardian.com/commentisfree/2022/aug/21/america-used-to-regulat...

The biggest thing the federal government now does with businesses is subsidize them. The Clean Air Act of 1970 authorized the government to regulate air pollution. The Inflation Reduction Act, which Joe Biden signed into law ... allocates more than $300bn to energy and climate reform, including $30bn in subsidies for manufacturers of solar panels and wind turbines. Notice the difference? This shift from regulation to subsidy has characterized every recent administration. Today it's politically difficult, if not impossible, for government to demand that corporations (and their shareholders) bear the costs of public goods. Spending by corporations on lobbying increased from $1.44bn in 1999 to $3.77bn in 2021 and is on track to exceed $4bn this year. This tidal wave of corporate money has occurred at the same time large American corporations have globalized ... demanding government subsidies in return for creating jobs and doing their cutting-edge research in America. The question [is] whether the government should subsidize certain industries that generate large social benefits in the form of new technologies. I argued that the government was already engaged in a hidden industrial policy, disguised, for example, as grants to the aerospace and telecom industries by the Department of Defense and to the pharmaceutical industry by the National Institutes of Health. It would be far better to do industrial policy in the open, so that the public could assess what it was paying for and what it was getting in return.

Note: This article was written by former U.S. Secretary of Labor Robert Reich. For more revealing information on the government sponsoring corporate, financial interests without public input, see concise summaries of news articles on corporate corruption, and corruption in government and the financial industry.


The Masters of the Universe Are Terrified of Elizabeth Warren and Bernie Sanders
2019-01-28, Esquire Magazine
https://www.esquire.com/news-politics/politics/a26065308/wall-street-democrat...

Early support from deep-pocketed financial executives could give Democrats seeking to break out of the pack an important fundraising boost. But any association with bankers also opens presidential hopefuls to sharp attacks from an ascendant left. And it’s left senior executives on Wall Street flailing over what to do. “I’m a socially liberal, fiscally conservative centrist who would love to vote for a rational Democrat and get Trump out of the White House,” said the CEO of one of the nation’s largest banks, who, like a dozen other executives interviewed for this story, declined to be identified. After mentioning Bloomberg, Wall Street executives who want Trump out list a consistent roster of appealing nominees that includes former Vice President Joe Biden and Sens. Cory Booker of New Jersey, Kirsten Gillibrand of New York and Kamala Harris of California. Bankers’ biggest fear: The nomination goes to an anti-Wall Street crusader like Sen. Elizabeth Warren (D-Mass.) or Sanders. “It can’t be Warren and it can’t be Sanders,” said the CEO of another giant bank. “It has to be someone centrist and someone who can win.” Clearly, they're not afraid that Senator Professor Warren or Bernie Sanders "can't win," but, rather, they're struck into incoherence that one of them can. Somewhere in the gated community holding their souls, they know that there still is a considerable reckoning out there for what they did throughout the Aughts, and that scares them to death. And now, there are popular vehicles through which that reckoning can be wrought. The universe may be shopping for new masters.

Note: Trump promised to drain the swamp of corrupt bankers, only to then appoint many of them to key positions in his administration. For more along these lines, see concise summaries of deeply revealing news articles on financial corruption from reliable major media sources. Then explore the excellent, reliable resources provided in our Banking Corruption Information Center.


Wall Street Giants Set to Smash Profit Records Off Global Hunger, Energy Crisis
2022-09-09, Common Dreams
https://www.commondreams.org/news/2022/09/09/wall-street-giants-set-smash-pro...

Russia's war on Ukraine has wreaked havoc on global commodity markets, driving up energy and food prices and exacerbating hunger emergencies around the world. But while disastrous for the global poor ... the chaos has been a major boon for Wall Street giants. "The 100 biggest banks by revenue are set to make $18 billion from commodities trading in 2022," Bloomberg reported Friday. "The prediction is the latest evidence that the wild swings in energy prices triggered by the war in Ukraine are delivering a boon to commodity traders, even as they push European nations into crisis," Bloomberg added. "Vali, an analytics firm that tracks trading business, compiled data that includes the leading five banks in commodity trading: Macquarie Group Ltd., Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc., and Morgan Stanley." "People's misery makes capitalists' superprofit," Salvatore De Rosa, a researcher at the Lund University Center for Sustainability Studies. The World Food Program estimates that "as many as 828 million people go to bed hungry every night" and ... "those facing acute food insecurity has soared–from 135 million to 345 million–since 2019." "It's too easy to say the war in Ukraine has unbalanced all these markets, [or that] supply chains and the ports are shot, and that there's a supply and demand reason for these prices going up," [Michael] Greenberger added. "My own best guess is anywhere from 10% to 25% of the price, at least, is dictated by deregulated speculative activity."

Note: For more along these lines, see concise news summaries revealing banking corruption from reliable major media sources. You can also visit our Banking Information Center to further explore corruption in the financial industry.


The super-rich 'preppers' planning to save themselves from the apocalypse
2022-09-04, The Guardian (One of the UK's leading newspapers)
https://www.theguardian.com/news/2022/sep/04/super-rich-prepper-bunkers-apoca...

Tech billionaires are buying up luxurious bunkers and hiring military security to survive a societal collapse they helped create, but like everything they do, it has unintended consequences. Their extreme wealth and privilege ... make them obsessed with insulating themselves from the very real and present danger of climate change, rising sea levels, mass migrations, global pandemics, nativist panic and resource depletion. For them, the future of technology is about only one thing: escape from the rest of us. What, if anything, could we do to resist it? A former president of the American chamber of commerce in Latvia ... JC Cole had witnessed the fall of the Soviet empire, as well as what it took to rebuild a working society almost from scratch. He believed the best way to cope with the impending disaster was to change the way we treat one another, the economy, and the planet right now. JC's real passion wasn't just to build a few isolated, militarised retreat facilities for millionaires, but to prototype locally owned sustainable farms that can be modelled by others and ultimately help restore regional food security in America. Investors not only get a maximum security compound in which to ride out the coming plague, solar storm, or electric grid collapse. They also get a stake in a potentially profitable network of local farm franchises that could reduce the probability of a catastrophic event. His business would do its best to ensure there are as few hungry children at the gate as possible when the time comes to lock down.

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