Government Corruption News Articles

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The Deputy Governor of the Bank of England encouraged Barclays to try to lower interest rates after coming under pressure from senior members of the last Labour government, documents have disclosed. A memo published by Barclays suggested that Paul Tucker gave a hint to Bob Diamond, the bank’s chief executive, in 2008 that the rate it was claiming to be paying to borrow money from other banks could be lowered. His suggestion followed questions from “senior figures within Whitehall” about why Barclays was having to pay so much interest on its borrowings, the memo states. Barclays and other banks have been accused of artificially manipulating the Libor rate, which is used to set the borrowing costs for millions of consumers, businesses and investors, by falsely stating how much they were paying to borrow money. The bank claimed yesterday that one of its most senior executives cut the Libor rate only at the height of the credit crisis after intervention from the Bank of England. The memo, written on Oct 29, 2008, by Mr Diamond and circulated to two other senior bank officials, said: “Mr Tucker reiterated that he had received calls from a number of senior figures within Whitehall to question why Barclays was always toward the top end of the Libor pricing.” Government sources suggested that Baroness Vadera, one of Gordon Brown’s closest colleagues, was responsible for the contact with the Bank of England.

Note: For deeply revealing and reliable major media reports on corruption and criminality in the operations and regulation of the financial sector, click here.

Wall Street has already watered down or delayed most of Dodd-Frank [financial reform act]. Now it wants to create a giant loophole, exempting its foreign branches from the law. Yet the overseas branches of Wall Street banks are where the banks have done some of their wilder betting. Four years ago, bad bets by American International Group's London office nearly unraveled the U.S. financial system. When the Commodity Futures Trading Commission, the main regulator of derivatives (bets on bets), recently proposed extending Dodd-Frank to the foreign branches of Wall Street banks, the banks screamed. "If JPMorgan overseas operates under different rules than our foreign competitors," warned Jamie Dimon, chairman and CEO of JPMorgan, Wall Street will lose financial business to the banks of nations with fewer regulations, allowing "Deutsche Bank to make the better deal." This is the same Jamie Dimon who chose London as the place to make highly risky derivatives trades that have lost the firm upward of $2 billion so far - and could leave American taxpayers holding the bag if JPMorgan's exposure to tottering European banks gets much worse. JPMorgan's risky betting in London is added proof that unless the overseas operations of Wall Street banks are covered by U.S. regulations, giant banks will hide irresponsible bets overseas. Squadrons of Wall Street lawyers and lobbyists have been pressing all the agencies charged with implementing Dodd-Frank to go easy on the Street.

Note: The author of this article, Robert Reich, is former U.S. secretary of labor, professor of public policy at UC Berkeley and the author of Aftershock: The Next Economy and America's Future. He blogs at www.robertreich.org.

Five of the biggest banks in the United States are putting finishing touches on plans for going out of business as part of government-mandated contingency planning that could push them to untangle their complex operations. The plans, known as living wills, are due to regulators no later than July 1 under provisions of the Dodd-Frank financial reform law designed to end too-big-to-fail bailouts by the government. The living wills could be as long as 4,000 pages. Since the law allows regulators to go so far as to order a bank to divest subsidiaries if it cannot plan an orderly resolution in bankruptcy, the deadline is pushing even healthy institutions to start a multi-year process to untangle their complex global operations, according to industry consultants. JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley are among those submitting the first liquidation scenarios to regulators at the Federal Reserve and the Federal Deposit Insurance Corp. The liquidation plans are coming amid renewed questions about the safety of big banks following JPMorgan's stunning announcement last month that a trading debacle has cost it more than $2 billion.

Note: For other key major media articles showing blatant financial corruption, click here. For more vitally important information on banking manipulations, explore the excellent, reliable information in our Banking Corruption Information Center available here.

Revelations that top officials are targeting people to be assassinated abroad, including American citizens, are only the most recent, disturbing proof of how far our nation’s violation of human rights has extended. This development began after [9/11] and has been sanctioned and escalated by bipartisan executive and legislative actions. While the country has made mistakes in the past, the widespread abuse of human rights over the last decade has been a dramatic change from the past. With leadership from the United States, the Universal Declaration of Human Rights was adopted in 1948 as “the foundation of freedom, justice and peace in the world.” This was a bold and clear commitment that power would no longer serve as a cover to oppress or injure people, and it established equal rights of all people to life, liberty, security of person, equal protection of the law and freedom from torture, arbitrary detention or forced exile. It is disturbing that, instead of strengthening these principles, our government’s counterterrorism policies are now clearly violating at least 10 of the declaration’s 30 articles, including the prohibition against “cruel, inhuman or degrading treatment or punishment.” Recent legislation has made legal the president’s right to detain a person indefinitely on suspicion of affiliation with terrorist organizations or “associated forces,” a broad, vague power that can be abused without meaningful oversight from the courts or Congress. This law violates the right to freedom of expression and to be presumed innocent until proved guilty, two other rights enshrined in the declaration.

Note: For revealing reports from major media sources on war crimes committed by US forces in the "global war on terror," click here.

In 1992, world leaders signed up to something called "sustainability". Few of them were clear about what it meant. Perhaps as a result, it did not take long for this concept to mutate into something subtly different: "sustainable development". Then it made a short jump to another term: "sustainable growth". And now, in the 2012 Rio+20 text that world leaders are about to adopt, it has subtly mutated once more: into "sustained growth". This term crops up 16 times in the document, where it is used interchangeably with sustainability and sustainable development. But if sustainability means anything, it is surely the opposite of sustained growth. Sustained growth on a finite planet is the essence of unsustainability. As a result, the draft document, which seems set to become the final document, takes us precisely nowhere: 190 governments have spent 20 years bracing themselves to "acknowledge", "recognise" and express "deep concern" about the world's environmental crises, but not to do anything about them. The draft and probably final declaration is 283 paragraphs of fluff. It suggests that the 190 governments due to approve it have, in effect, given up on multilateralism, given up on the world and given up on us. So what do we do now?

The Trans-Pacific Partnership (TPP) may soon be an acronym as recognizable as NAFTA — but this free trade venture could have much more economic strength and impact than its North American predecessor. The Trans-Pacific Partnership is a free trade deal aimed at further expanding the flow of goods, services and capital across borders. Its four founding members — New Zealand, Chile, Singapore and Brunei – soon caught the attention of five other nations: the United States, Australia, Peru, Vietnam and Malaysia, who joined in 2008. The nine partners currently have a combined GDP of more than $17 trillion. Canada and Mexico are now being considered for membership, subject to the approval of the nine countries already involved. Add to this the possibility that Japan could join the TPP, despite mounting protests in that country, and the economic and political traction of the group increases. In fact, the TPP could become the world's largest free-trade zone. "It's really a trade agreement for the one per cent and their corporate interests," said Maude Barlow, the National Chairperson of the Council of Canadians, which opposed and continues to criticize NAFTA. "This is not going to be a good deal for Canadians."

Note: A later Toronto Star article reveals that the agreements of the TPP are secret.

When Jamie Dimon, CEO of JPMorgan Chase Bank, appeared before the Senate Banking Committee on June 13, he was wearing cufflinks bearing the presidential seal. “Was Dimon trying to send any particular message by wearing the presidential cufflinks?” asked CNBC editor John Carney. “Was he . . . subtly hinting that he’s really the guy in charge?” The groveling of the Senators was so obvious that Jon Stewart did a spoof news clip on it. JPMorgan Chase is the biggest campaign donor to many of the members of the Banking Committee. Financial analysts Jim Willie and Rob Kirby think it may be something far larger, deeper, and more ominous. They contend that the $3 billion-plus losses in London hedging transactions that were the subject of the hearing can be traced, not to European sovereign debt (as alleged), but to the record-low interest rates maintained on U.S. government bonds. The national debt is growing at $1.5 trillion per year. Ultra-low interest rates must be maintained to prevent the debt from overwhelming the government budget. Near-zero rates also need to be maintained because even a moderate rise would cause multi-trillion dollar derivative losses for the banks, and would remove the banks’ chief income stream, the arbitrage afforded by borrowing at 0% and investing at higher rates. The low rates are maintained by interest rate swaps, called by Willie a “derivative tool which controls the bond market in a devious artificial manner.”

Note: We don't usually use alternet.org as a reliable source, but because the major media failed to ask the hard, very important questions posed in this article, we've included it here. For powerful reports on financial corruption, click here.

Native American tribes are celebrating a major victory in their battle for equal treatment after the US supreme court ruled that the government could no longer short-change them over contracts for public services. The suit claimed that the government had over many years withheld millions of dollars owed to the tribes by imposing a cap on the contracts it had taken out with them. Native American leaders hailed the ruling as an important victory. Rodger Martinez, president of the Ramah Navajo Chapter in New Mexico that was a plaintiff in the case, said they had been saddened that they had to go all the way to the supreme court to find redress. "But we are happy that they sided with us. This gets us back to the principle that the government must pay us what we are entitled to," he said. The dispute over money relates to services provided by the tribes themselves under the Indian Self-Determination Act of 1975. Under that law, the tribes would sub-contract from the federal government public services such as police, schools, fire prevention, hospitals, and infrastructure works, as well as environmental works and subsidies to farmers. Under the arrangement, the federal government would pay the tribes for the services provided, just as it would any other contractor. But from 1994 the government changed the way it paid for the services, no longer paying for each contract in full but handing the tribes a collective lump sum onto which it imposed a ceiling – thereby withholding from them a portion of the moneys owed. The supreme court ruling found this to be unacceptable.

Note: For key reports on government corruption from major media sources, click here.

There's been a lot of speculation about the cufflinks [JPMorgan Chase CEO] Jamie Dimon wore during [his Congressional] testimony. They caught the eye of folks because they seemed to bear some sort of official government stamp. As it turns out, they were emblazoned with the seal of the President of the United States. CNN's Lizzie O'Leary first confirmed the story last night over Twitter. They were, in fact, a gift from a resident of the White House. But people close to the JPMorgan Chase CEO won't say which president gave them to him. Dimon's got a bunch of official U.S. government cufflinks. Search for images of him and you'll see FBI cufflinks, for example. Was Dimon trying to send any particular message by wearing the presidential cufflinks? Was he, for instance, trying to remind the Democrats he supported Obama? Or subtly hinting that he's really the guy in charge?

Note: For powerful reports on financial corruption, click here.

Christine Lagarde, the IMF boss who caused international outrage after she suggested ... that beleaguered Greeks might do well to pay their taxes, pays no taxes, it has emerged. As an official of an international institution, her salary of $467,940 (Ł298,675) a year plus $83,760 additional allowance a year is not subject to any taxes. Lagarde, 56, receives a pay and benefits package worth more than American president Barack Obama earns from the United States government, and he pays taxes on it. According to Lagarde's contract she is also entitled to a pay rise on 1 July every year during her five-year contract. For many years critics have complained that IMF, World Bank, and United Nations employees are able to live large at international taxpayers' expense. During the 1944 economic conference at Bretton Woods, where the IMF was created, American and British politicians disagreed over salaries for the bureaucrats. British delegates, including the economist John Maynard Keynes, considered the American proposals for salaries to be "monstrous", but lost the argument.

Note: For key reports from major media sources on government corruption, click here.

Today marks two years of imprisonment of Private Bradley Manning. The US government was going to use Manning as a warning to anyone else who might feel compelled to report on war crimes, or any other crimes they witness from within the system. Blow the whistle, goes the warning, and you will be buried alive by the state, shredded by the same secrecy machine a whistleblower would try to expose. Because of courage and creativity of activists, Bradley Manning has not been forgotten, even if that was the aim of authorities, and he never shall be forgotten. His case has been largely shunned by most of the mainstream media, especially in the US. This needs to change, because if he is indeed found guilty of being a whistleblower of such magnitude that it shook the entire secrecy machine of our world out of its comfort zone, his acts would need to be honored as an inspiration to change the way governments hide the reality of their actions from the people they are supposed to be serving and informing. Manning should not be convicted in secret: the media should be given access to the court filings; and the media should be pushing harder for the first amendment of the US constitution to be honored in the Manning case.

Note: For key reports on government secrecy from reliable sources, click here.

Congress gets into the JPMorgan Chase affair Tuesday with the first in a series of hearings into how a federally insured bank incurred [huge] losses on the kind of risky bets some, mistakenly, thought were a thing of the past. The losses, as suspected, look to be far higher than the $2 billion initially estimated. As of Friday, the number was $5 billion. What did CEO Jamie Dimon know, and when did he know it? "Dimon personally approved the concept behind the disastrous trades," according to the Wall Street Journal. Reportedly, similar trades, involving credit derivatives, date to 2006, ramping up with ever bigger bets as risk controls were eased in 2011.On the one hand, JPMorgan and other U.S. corporations are banking record profits and ever-growing piles of cash - $2 trillion at last count. On the other, U.S. unemployment remains unacceptably high, people are still losing their homes, small businesses are screaming for credit, local governments are cutting services left and right, and the nation's infrastructure is crumbling. Tons of money [are] sloshing around, courtesy of the Federal Reserve, but banks and corporations ... are hoarding it.

Note: For lots more from reliable sources on corruption and criminality in the finance industry, click here.

Thousands of nurses and other protesters gathered [on May 18] at a downtown Chicago plaza for a noisy but peaceful demonstration demanding a "Robin Hood" tax on banks' financial transactions. Members of National Nurses United, the nation's largest nurses union, were joined by members of the Occupy movement, unions and veterans at the rally city officials have said could attract more than 5,000. The nurses and their supporters dressed in red shirts and wore green felt Robin Hood caps with red feathers. The rally — which originally was scheduled to coincide with the start of the G-8 economic summit before it was moved from Chicago to Camp David — drew a broad spectrum of causes, from anti-war activists to Occupy protesters. Meanwhile, lawyers for NATO summit protesters said police on [May 18] released four of nine activists arrested ... on accusations that they had or planned to make Molotov cocktails. The lawyers said police, with their guns drawn, raided an apartment building where activists were staying and arrested nine people. The Chicago chapter of the National Lawyers Guild said officers broke down doors in the building in the South Side Bridgeport neighborhood and produced no warrants. "The nine have absolutely no idea what they're being charged with because they were not engaged in any criminal activity at all," said guild attorney Sarah Gelsomino. "They're really very confused and very frightened." The Chicago Police Department refused to comment.

Note: For more on the defense of the victims of the police crackdown on Occupy in Chicago and elsewhere, click here. For a most excellent two-minute video of former U.S. Labor Secretary Robert Reich presenting five of the most urgent problems with the economy and an easy solution all in two minutes, click here. For an enlightening five-minute TED talks video further showing how the rich getting richer while they pay increasingly less taxes is at the root of most economic woes, click here.

America's top military officer [the Chairman of the Joint Chiefs of Staff, General Martin Dempsey] has condemned a course taught about Islam at one of America's top military schools as "totally objectionable". The course taught officers there was no such thing as moderate Islam and that they should consider the religion their enemy. It advocated "total war" against all the world's Muslims, including possible nuclear attacks on the holy cities of Mecca and Medina and the wiping out [of] civilian populations. The Pentagon has confirmed [that] the course material found on their website is authentic. This is not ... a rather sick academic exercise in stretching the bounds of what could be thought. It is actually what the officer teaching it believes. In other words: completely nutty stuff that would disgrace the wilder fringes of the blogosphere. The voluntary course aimed at senior officers was taught at the Joint Forces Staff College in Norfolk, Virginia, for a year. It came to light when one of the officers on the course complained last month. There is now an investigation into how the course was approved and why it was part of the curriculum. A lieutenant colonel has been suspended from teaching, but for the moment keeps his job.

Note: For lots more from reliable sources on the extremism evident in the prosecution of the "global war on terror," click here.

Since the start of the wars in Iraq and Afghanistan, there has been a large and steady rise in the prevalence of post-traumatic stress disorder among our troops. One recent study of ... Americans who served in those countries found that the rates of the disorder jumped to 22 percent in 2008 from just 0.2 percent in 2002. [A] factor that might be playing a role in the increasing rates of the disorder ... has escaped attention: the military’s use of stimulant medications, like Ritalin and Adderall, in our troops. Annual spending on stimulants jumped to $39 million in 2010 from $7.5 million in 2001 - more than a fivefold increase. The number of Ritalin and Adderall prescriptions written for active-duty service members increased by nearly 1,000 percent in five years, to 32,000 from 3,000. The military almost certainly uses the stimulants to help fatigued and sleep-deprived troops stay alert. By causing the direct release of norepinephrine — a close chemical relative of adrenaline — in the brain, stimulants facilitate memory formation. Not surprisingly, emotionally arousing experiences — both positive and negative — also cause a surge of norepinephrine, which helps to create vivid, long-lasting memories. That’s why we tend to remember events that stir our feelings and learn best when we are a little anxious. Since PTSD is basically a pathological form of learning known as fear conditioning, stimulants could plausibly increase the risk of getting the disorder. It is an open question whether the use of stimulants in combat does more good than harm.

Note: For more along these lines, see concise summaries of deeply revealing news articles on corruption in drug companies and in the military.

On 3 April [2002] Maria de los Angeles Veron, known as "Marita", went missing. In February [2012], 13 people accused of kidnapping Ms Veron and selling her to traffickers who forced her into prostitution went on trial in a court in Tucuman province, in the north west of Argentina. This case has become over the years a symbol of the fight against human trafficking in Argentina and most of South America. Especially because of what Mrs Trimarco has done over the last decade. In the search for her daughter she infiltrated herself into human trafficking gangs pretending to be interested in "buying" women. The information gathered by these actions led to police raids which rescued dozens of women who were being sexually exploited. Mrs Trimarco later launched the Fundacion Maria de los Angeles, named after her missing daughter. Since 2007 it has helped rescue hundreds of victims of sexual exploitation and human trafficking. She and her husband Daniel, who died in 2010, asked at hospitals, and spoke to police and neighbours about Marita. No-one knew her whereabouts. After several days there was a breakthrough. Someone had seen her being pushed inside a vehicle by three men. And weeks later a prostitute confirmed their worst fears. They were told that their daughter had been "sold" to traffickers. Mrs Trimarco says the authorities in the province at the time, as well as former members of the police and the judiciary, were in collusion with the traffickers, which is why it was so difficult to find her daughter.

Note: Months after the above article was published, there were riots after the accused were set free. Ms. Trimarco said that "while she cannot prove it, she is sure that judicial corruption influenced the verdicts." For powerful information from a Discovery Channel documentary showing that this kind of corruption is also occurring at the highest levels in the US, click here.

A group [of] political activists and journalists has launched a legal challenge to stop an American law they say allows the US military to arrest civilians anywhere in the world and detain them without trial as accused supporters of terrorism. The seven figures, who include ex-New York Times reporter Chris Hedges, professor Noam Chomsky and Icelandic politician and WikiLeaks campaigner Birgitta Jonsdottir, testified to a Manhattan judge that the law – dubbed the NDAA or Homeland Battlefield Bill – would cripple free speech around the world. They said that various provisions written into the National Defense Authorization Bill, which was signed by President Barack Obama at the end of 2011, effectively broadened the definition of "supporter of terrorism" to include peaceful activists, authors, academics and even journalists interviewing members of radical groups. Controversy centres on the loose definition of key words in the bill, in particular who might be "associated forces" of the law's named terrorist groups al-Qaida and the Taliban and what "substantial support" to those groups might get defined as. Whereas White House officials have denied the wording extends any sort of blanket coverage to civilians, rather than active enemy combatants, or actions involved in free speech, some civil rights experts have said the lack of precise definition leaves it open to massive potential abuse.

Note: For discussion of the extreme crackdown by police, based on "anti-terrorism" legislation, against Occupy movement protestors, click here.

The Obama administration is moving to relax restrictions on how counterterrorism analysts may retrieve, store and search information about Americans gathered by government agencies for purposes other than national security threats. Attorney General Eric H. Holder Jr. [has] signed new guidelines for the National Counterterrorism Center. The guidelines will lengthen to five years — from 180 days — the amount of time the center can retain private information about Americans when there is no suspicion that they are tied to terrorism, intelligence officials said. The guidelines are also expected to result in the center making more copies of entire databases and “data mining them.” They also set off civil-liberties concerns among privacy advocates who invoked the “Total Information Awareness” program. That program, proposed early in the George W. Bush administration and partially shut down by Congress after an outcry, proposed fusing vast archives of electronic records — like travel records, credit card transactions, phone calls and more. “We’re all in the dark, and for all we know it could be a rerun of Total Information Awareness, which would have allowed the government to make a computerized database of everything on everybody,” said Kate Martin, the director of the Center for National Security Studies, who criticized the administration for not making the draft guidelines public for scrutiny ahead of time.

Note: For excellent and insightful analyses of the disturbing growth of government surveillance and secrecy described in this NYT report, click here and here and here and here.

The International Criminal Court in The Hague on [March 14] found former Congolese warlord Thomas Lubanga guilty of using children as soldiers, the first verdict in the panel's 10-year history. He could face life imprisonment. After a three-year trial, the court convicted Lubanga of recruiting boys and girls younger than 15 as soldiers during a civil war in the Democratic Republic of Congo in 2002 and 2003. Although his militia was accused of massacres, rapes, torture and ethnic killings by human rights activists and witnesses, the court charged him only with the recruitment and use of children to fight. Amnesty International expressed disappointment that the court failed to prosecute other crimes that Lubanga was alleged to have committed and called on the ICC to widen its future prosecutions. It also called on the court to ensure trials proceeded more swiftly. The verdict was seen as a major breakthrough in forcing warlords and politicians to be held accountable for atrocities and crimes against humanity, sending a message that international justice eventually would catch up with them. The evidence said girls forcibly recruited by the warlord were used as sex slaves, and videos aired in court showed Lubanga surrounded by child combatants. Tens of thousands of children continue to be used in wars across the continent, according to human rights agencies. Other African leaders or warlords indicted by the court include Joseph Kony of the Lord's Resistance Army, whose activities in Uganda were highlighted in a video watched by about 70 million people last week.

Former Florida Sen. Bob Graham, who co-chaired Congress’ Joint Inquiry into the 9/11 terrorist attacks, has seen two classified FBI documents that he says are at odds with the bureau’s public statements that there was no connection between the hijackers and Saudis then living in Sarasota, Fla. “There are significant inconsistencies between the public statements of the FBI in September and what I read in the classified documents,” Graham said. “One document adds to the evidence that the investigation was not the robust inquiry claimed by the FBI,” Graham said. “An important investigative lead was not pursued and unsubstantiated statements were accepted as truth.” Congress’s bipartisan inquiry released its public report in July 2003. The final 28 pages, regarding possible foreign support for the terrorists, were censored in their entirety -- on President George W. Bush’s instructions. Graham said the two classified FBI documents that he saw, dated 2002 and 2003, were prepared by an agent who participated in the Sarasota investigation. He said the agent suggested that another federal agency be asked to join the investigation, but that the idea was “rejected.” Graham attempted in recent weeks to contact the agent, he said, only to find the man had been instructed by FBI headquarters not to talk.

Note: Much evidence exists implicating not only Saudi Arabia, but also Pakistan, Israel and the UK in the 9/11 attacks. Could the purpose behind these high-profile claims from former US senators be to deflect attention from the key perpetrators, rogue elements within the US government? As WantToKnow team member Prof. David Ray Griffin has exhaustively demonstrated, almost all of the evidence for Muslim hijackers vanishes on close examination. For more serious questions on 9/11, 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.