Government Corruption News Articles

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Wall Street tactics akin to the ones that fostered subprime mortgages in America have worsened the financial crisis shaking Greece and undermining the euro by enabling European governments to hide their mounting debts. As worries over Greece rattle world markets, records and interviews show that with Wall Street’s help, the nation engaged in a decade-long effort to skirt European debt limits. One deal created by Goldman Sachs helped obscure billions in debt from the budget overseers in Brussels. As in the American subprime crisis and the implosion of the American International Group, financial derivatives played a role in the run-up of Greek debt. Instruments developed by Goldman Sachs, JPMorgan Chase and a wide range of other banks enabled politicians to mask additional borrowing in Greece, Italy and possibly elsewhere. In dozens of deals across the Continent, banks provided cash upfront in return for government payments in the future, with those liabilities then left off the books. Greece, for example, traded away the rights to airport fees and lottery proceeds in years to come. Critics say that such deals, because they are not recorded as loans, mislead investors and regulators about the depth of a country’s liabilities.

Note: For a treasure trove of investigations from reliable sources into the many tricks by which Wall Street firms enriched themselves at the expense of others, click here.

The discovery of three American soldiers among the dead in a suicide bombing at the opening of a girls’ school in the northwestern Pakistan town of Dir [has] reignited the fears of many Pakistanis that Washington was set on invading their country. In Pakistan, the US president has dramatically stepped up the covert war against Islamic extremists. US airstrikes in Pakistan, launched from unmanned drones, are now averaging three a week, triple the number last year. “We're quietly seeing a geographical shift,” an intelligence officer said. The discovery of the dead US soldiers revealed that America’s shadowy war in Pakistan not only involves drones but also small cadres of special operations soldiers. Sources said there were about 200 US military inside the country. “I’m not sure you could just call it training,” one official said. “They are hardly behind the wire if they are on trips to schools in Dir.” The three US soldiers, who have been described variously as special operations forces and civil affairs troops, were killed when their convoy was bombed as it travelled to the re-opening of the school. One official suggested the “trainers” may be used to pick up intelligence on drone targets. If the drones are controversial, the presence of US soldiers on Pakistani soil is far more so.

Note: For more from reliable sources on the covert aspects of the US military aggression worldwide, click here.

De facto segregation is alive and well in public schools in virtually every state, but is more common in charter schools - an educational option increasingly endorsed in state and national reform efforts, according to a [new] national study. The trend is particularly severe for African American students, the UCLA researchers found. Nearly 3 out of 4 black students who attend charters are in "intensely segregated" schools with student populations that are at least 90 percent minority, according to the study by the UCLA Civil Rights Project. That's twice the rate of regular public schools. Almost a third of those black students are in what the researchers called "apartheid schools," where 0 to 1 percent of their classmates are white. These are "the very kind of schools that decades of civil rights struggles fought to abolish in the South," researchers said.

In a case that could have far-reaching implications for medical research and health care based on genetics, groups representing thousands of doctors, scientists and patients went to court ... to argue that no one should be able to patent human genes, a question that has long been controversial in scientific circles. The case involves a Utah company, Myriad Genetics, and the University of Utah Research Foundation, which in 1994 isolated the DNA sequence for the BRCA1 and later the BRCA2 genes, mutations of which can greatly increase a woman's chance of developing breast and ovarian cancer. Myriad sells a test for the genes. The American Civil Liberties Union and the Public Patent Foundation ... argued before federal district court Judge Robert Sweet that patents on genes are unconstitutional. The U.S. Patent Office allows genes to be patented as soon as someone isolates the DNA by removing it from the cell, says ACLU attorney Sandra Park. "We're arguing that isolating it does not make it patentable. It's a natural phenomenon, and the Supreme Court has always said natural phenomena are not patentable."

Note: For many key investigations from major media sources into corporate and governmental threats against civil liberties, click here.

President Obama's fiscal 2011 budget blueprint calls for an increase in funding of more than 13 percent for the agency that oversees the U.S. nuclear weapons complex, a greater percentage increase than for any other government agency. The $11.2 billion request for the National Nuclear Security Administration (NNSA) represents a 13.4 percent increase for the agency from the previous fiscal year. Most agencies across the rest of the government saw either no increase in the spending plan announced this week or a single-digit percentage increase. Sen. Jon Kyl (R-Ariz.), who has actively followed negotiations over a new nuclear treaty with Russia, said the increase in the budget was "a definite improvement over previous years." Other observers already see the new budget as a boon for arms-control advocates.

Note: So the winner of the Nobel Peace Prize, President Obama, is increasing the budget for nuclear weapons more than any other agency. Kind of ironic, isn't it? For the real reasons behind this, read what one of the most highly decorated US generals ever had to say about the real forces behind war at this link.

The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists. After this week’s congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all. Wednesday’s hearing described a secretive group deploying billions of dollars to favored banks, operating with little oversight by the public or elected officials. We’re talking about the Federal Reserve Bank of New York, whose role as the most influential part of the federal-reserve system -- apart from the matter of AIG’s bailout -- deserves further congressional scrutiny. The New York Fed is in the hot seat for its decision in November 2008 to buy out, for about $30 billion, insurance contracts AIG sold on toxic debt securities to banks. Treasury Secretary Timothy Geithner was head of the New York Fed at the time of the AIG moves. The hearing revealed some of the inner workings of the New York Fed and the outsized role it plays in banking. This insight is especially valuable given that the New York Fed is a quasi-governmental institution that isn’t subject to citizen intrusions such as freedom of information requests, unlike the Federal Reserve. This impenetrability comes in handy since the bank is the preferred vehicle for many of the Fed’s bailout programs. It’s as though the New York Fed was a black-ops outfit for the nation’s central bank.

Note: For lots more from reliable sources on the secret deliberations by the highest levels of government and private elites in their attempts to bail out the biggest financial corporations, click here.

U.S. military teams and intelligence agencies are deeply involved in secret joint operations with Yemeni troops who in the past six weeks have killed scores of people. The operations, approved by President Obama, involve several dozen troops from the U.S. military's clandestine Joint Special Operations Command (JSOC), whose main mission is tracking and killing [targeted persons]. Obama approved a Dec. 24 strike against a compound where a U.S. citizen, Anwar al-Aulaqi, was thought to be. He has since been added to a shortlist of U.S. citizens specifically targeted for killing or capture by the JSOC. The combined efforts have resulted in more than two dozen ground raids and airstrikes. After the Sept. 11 attacks, Bush gave the CIA, and later the military, authority to kill U.S. citizens abroad. The Obama administration has adopted the same stance. Both the CIA and the JSOC maintain lists of individuals, called "High Value Targets" and "High Value Individuals," whom they seek to kill or capture. The JSOC list includes three Americans, including Aulaqi, whose name was added late last year. As of several months ago, the CIA list [also] included three U.S. citizens.

Note: For many reports from reliable sources on the growing governmental threats to civil liberties, click here.

Although the FBI has acknowledged it improperly obtained thousands of Americans' phone records for years, the Obama administration continues to assert that the bureau can obtain them without any formal legal process or court oversight. In further support of [this assertion] the Justice Department's Office of Legal Counsel backed the FBI in a written opinion issued this month. The opinion by the OLC — the section that wrote the memos that justified enhanced interrogation techniques during the last administration — appears to be yet another sign that the Obama administration can be just as assertive as Bush's in claiming sweeping and controversial anti-terrorism powers. "The FBI says that this kind of activity is in the past," said Michael German, a former FBI agent who's now the American Civil Liberties Union's policy counsel. "But if they're saying that they have a continuing legal authority that means it's not in the past." In another similarity to Bush era-legal decisions to keep legal theories under wraps, Obama's Justice Department refused to release to McClatchy the OLC opinion, despite the administration's vow to be more open than its predecessors.

Note: For many reports from reliable sources on the growing governmental threats to civil liberties, click here.

The Supreme Court has handed lobbyists a new weapon. A lobbyist can now tell any elected official: if you vote wrong, my company ... will spend unlimited sums explicitly advertising against your re-election. “We have got a million we can spend advertising for you or against you — whichever one you want,’ ”a lobbyist can tell lawmakers, said Lawrence M. Noble, ... former general counsel of the Federal Election Commission. It is expected to unleash a torrent of attack advertisements from outside groups aiming to sway voters, without any candidate having to take the criticism for dirty campaigning. The biggest beneficiaries might be well-placed incumbents whose favor companies and interests groups are eager to court. It could also have a big impact on state and local governments, where a few million dollars can have more influence on elections. Fred Wertheimer, a longtime advocate of campaign finance laws, said the decision “wipes out a hundred years of history” during which American laws have sought to tamp down corporate power to influence elections.

Note: If you want to voice your opinion about this recent Supreme Court ruling, click here. For many key articles from reliable sources on serious flaws in the electoral process in the US, click here.

Simon Glik, a lawyer, was walking down Tremont Street in Boston when he saw three police officers struggling to extract a plastic bag from a teenager’s mouth. Thinking their force seemed excessive for a drug arrest, Glik pulled out his cellphone and began recording. Within minutes, Glik said, he was in handcuffs. The charge? Illegal electronic surveillance. Civil libertarians call [such arrests] a troubling misuse of the state’s wiretapping law to stifle the kind of street-level oversight that cellphone and video technology make possible. “The police apparently do not want witnesses to what they do in public,’’ said Sarah Wunsch, a staff attorney with the American Civil Liberties Union. With the advent of media-sharing websites like Facebook and YouTube, the practice of openly recording police activity has become commonplace. But in Massachusetts and other states, the arrests of street videographers, whether they use cellphones or other video technology, offers a dramatic illustration of the collision between new technology and policing practices. Police are not used to ceding power, and these tools are forcing them to cede power.

Note: For lots more on increasing government and corporate threats to civil liberties, click here.

An investigation by BBC's Newsnight has cast doubts on the key piece of evidence which convicted the Lockerbie bomber, Abdelbaset Ali al-Megrahi. Tests aimed at reproducing the blast appear to undermine the case's central forensic link, based on a tiny fragment identified as part of a bomb timer. The tests suggest the fragment, which linked the attack to Megrahi, would not have survived the mid-air explosion. Newsnight has ... exposed serious doubts about the forensics used to identify the fragment as being part of a trigger circuit board. The fragment was found three weeks after the attack. For months it remained unnoticed and unremarked, but eventually it was to shape the entire investigation. The fragment was embedded in a charred piece of clothing, which was marked with a label saying it was made in Malta. So the focus turned to Malta and the question of who had bought the clothes. A shopkeeper on the island identified Megrahi, but this came only years later after he saw him pictured in a magazine as a Lockerbie suspect. Newsnight has discovered that the fragment - crucial to the conviction - was never subjected to chemical analysis or swabbing to establish whether it had in fact been involved in any explosion.

Note: For a revealing documentary showing a major cover-up of the Lockerbie bombing, click here. For many reports from major media sources questioning the evidence presented in the prosecution of "terrorism" cases, click here.

Bush administration officials came up with all kinds of ridiculously offensive rationalizations for torturing prisoners. It's not torture if you don't mean it to be. It's not torture if you don't nearly kill the victim. It's not torture if the president says it's not torture. It was deeply distressing to watch the United States Court of Appeals for the District of Columbia Circuit sink to that standard in April when it dismissed a civil case brought by four former Guantánamo detainees never charged with any offense. The court said former Secretary of Defense Donald Rumsfeld and the senior military officers charged in the complaint could not be held responsible for violating the plaintiffs' rights because at the time of their detention ... it was not "clearly established" that torture was illegal. The Supreme Court could have corrected that outlandish reading of the Constitution, legal precedent, and domestic and international statutes and treaties. Instead, last month, the justices abdicated their legal and moral duty and declined to review the case. The justices surely understood that their failure to accept the case would further undermine the rule of law. In effect, the Supreme Court has granted the government immunity for subjecting people in its custody to terrible mistreatment. It has deprived victims of a remedy and Americans of government accountability, while further damaging the country's standing in the world.

Note: For many reliable reports on the torture used by governments pursuing the "war on terror", click here.

In 2009, the Justice Department began to release reports and top-secret memos detailing interrogation techniques ... used by CIA officers against suspected terror operatives. The list of brutal techniques, including holding prisoners in small boxes, staging mock executions, and water torture, is reminiscent of some of the worst human-rights abuses on record. In medieval Europe, torture was more than just a means of punishment. Many criminal trials of the era consisted of one or more 'ordeals,' painful tests designed to prove guilt or innocence through supernatural judgment. During waterboarding, a technique first used in the 14th century, torturers begin by pumping water directly into a victim's stomach or slowly flooding his throat with liquid. Used extensively during the Spanish Inquisition, the practice became less publicly acceptable during the Enlightenment, then experienced an underground resurgence in the 19th century. Since World War II, different forms of waterboarding have been employed by governments in Japan, Cambodia, the United Kingdom and the United States, among others. In addition to performing forced labor, prisoners at Nazi concentration camps became subjects in some of the cruelest medical experiments ever performed. They were often held at extreme altitudes and temperatures to help develop new survival strategies or exposed to deadly gases and diseases in order to test vaccines. Many of these tests, directed by the infamous Josef Mengele at Auschwitz, advanced Nazi ideology by establishing 'Jewish racial inferiority.'

Note: The above link leads to a revealing 12-part slide show on the history of torture. For more disturbing information on how Nazi torture techniques were eventually used by the CIA for mind control, click here.

H.R. 4173 [is] the financial-reform legislation passed earlier this month by the House of Representatives. The Senate has yet to pass its own reform plan. The baby of Financial Services Committee Chairman Barney Frank, the House bill is meant to address everything from too-big-to-fail banks to asleep-at-the-switch credit-ratings companies to the protection of consumers from greedy lenders. At 1,279 pages, the “Wall Street Reform and Consumer Protection Act” is a real slog. While banks opposed the legislation, they should cheer for its passage by the full Congress in the New Year: There are huge giveaways insuring the government will again rescue banks and Wall Street if the need arises. For all its heft, the bill doesn’t once mention the words “too-big-to-fail,” the main issue confronting the financial system. Instead, it supports the biggest banks. It authorizes Federal Reserve banks to provide as much as $4 trillion in emergency funding the next time Wall Street crashes. So much for “no-more-bailouts” talk. The bill also allows the government, in a crisis, to back financial firms’ debts. Bondholders can sleep easy -- there are more bailouts to come.

Note: For a treasure trove of reliable reports on the government bailout of Wall Street, click here.

The massive U.S. Senate healthcare reform measure passed ... with support from the multibillion drug industry, but makers of cheaper generic rivals are feeling left out in the cold. Generic drugmakers face several obstacles in the bill backed by Democrats that they worry will dampen a potential increase in use even as more people gain access to health insurance and prescription medicines. The hurdles include extensive protections against generic versions of pricey biotech medicines, an incentive for Medicare recipients to use more brand-name drugs, and a possible end to payments from brandname makers to delay the launch of copy-cat medicines. "The bill passed by the Senate unfortunately amounts to a treasure trove to brand drug companies," said Generic Pharmaceutical Association President Kathleen Jaeger. Bill Marth, chief executive of Teva's North American operations, said Democrats missed a chance to further boost [generics] use: "It's frustrating," he said. "Maybe some people have just lost sight of what the bill is supposed to do."

Note: For a powerful analysis by Dr. Marcia Angell, former editor in chief of the New England Journal of Medicine, of the corrupt relationship between the biggest pharmaceutical companies and the federal government, click here. Drug company lobbyists who contribute millions of dollars to the elections campaigns of Congress members have a huge influence which is often detrimental to public health.

Osama bin Laden’s closest relatives are living in a secret compound in Iran, members of the family said. They include a wife and children who disappeared from his Afghan camp at the time of the 9/11 attacks on the United States. There has been uncertainty about the family’s whereabouts for the past eight years, with reports that some of the children had been killed in bombings. However, relatives said that they found out last month that the group, including one of Osama’s wives, six of his children and 11 of his grandchildren, had been kept in a high-security compound outside Tehran. Members of the bin Laden family are now appealing for the group to be allowed to leave Iran and described them as the “forgotten victims of 9/11”. Omar Ossama bin Laden, 29, [Osama bin Laden's] fourth-eldest son, said he had no idea that his brothers and sisters were still alive until they called him in November. They told him how they had fled Afghanistan just before the 9/11 attacks and walked to the Iranian border. They were taken to a walled compound outside Tehran where guards said they were not allowed to leave “for their own safety”.

Note: This article fails to mention that the US government secretly assisted many bin Laden family members to escape the US within days of the 9/11 attacks, as reported in the major media. For more on this, click here. For many other reports by the major media raising serious questions about the involvement of rogue elements of government in 9/11, click here.

U.S. banks that spent more money on lobbying were more likely to get government bailout money. Banks whose executives served on Federal Reserve boards were more likely to receive government bailout funds from the Troubled Asset Relief Program, according to the study from Ran Duchin and Denis Sosyura, professors at the University of Michigan's Ross School of Business. Banks with headquarters in the district of a U.S. House of Representatives member who serves on a committee or subcommittee relating to TARP also received more funds. Political influence was most helpful for poorly performing banks, the study found. "Political connections play an important role in a firm's access to capital," Sosyura, a University of Michigan assistant professor of finance, said in a statement. Banks with an executive who sat on the board of a Federal Reserve Bank were 31 percent more likely to get bailouts through TARP's Capital Purchase Program. Banks with ties to a finance committee member were 26 percent more likely to get capital purchase program funds. As of late September, nearly 700 financial institutions had received bailouts of $205 billion under the capital purchase program. The banking industry has long been criticized for using political influence to obtain bailouts.

Note: For lots more from reliable sources on the symbiosis between big finance and big government, click here.

A healthcare firm is seeking to silence a Danish academic from expressing doubts about one of its products by using England’s draconian libel laws. Two years ago in a conference room in the Randolph hotel in Oxford, Henrik Thomsen ... one of Europe’s leading radiologists, revealed how patients treated at his hospital had subsequently contracted a rare and potentially fatal disease. Thomsen and other doctors at his Copenhagen University hospital were baffled as to why 20 kidney patients who had been given routine scans were afflicted by a disorder — nephrogenic systemic fibrosis (NSF) — in which the skin gradually swells, thickens and tightens. Some sufferers were confined to wheelchairs. At least one died. There was no known cure. It was confirmed that all those who had fallen ill with NSF had been given the same drug in advance of a magnetic resonance imaging (MRI) scan. Omniscan was used to enhance the images produced by the scan. The product was sold around the world and was manufactured by GE Healthcare, a subsidiary of General Electric, one of the world’s largest corporations. Thomsen ... now refuses to speak anywhere in England on the possible risks of Omniscan. The reason is that he faces another kind of storm: GE Healthcare is suing him in the High Court for libel. GE has already racked up costs of more than Ł380,000 pursuing the respected academic. Thomsen will have to pay the firm’s costs if he loses the case.

Note: For lots more on corporate corruption from reliable sources, click here.

[Bill Moyers:] Something's not right here. One year after the great collapse of our financial system, Wall Street is back on top while our politicians dither. As for health care reform, you're about to be forced to buy insurance from companies whose stock is soaring, and that's just dandy with the White House. It's capital. Raw money, mounds of it, buying politicians and policy as if they were futures on the hog market. Some of the big insurance companies, Well Point, Cigna, United Health, all surged to a 52 week high in their share prices this week when it was clear there'd be no public option in the health care bill going through Congress right now. What does that tell you? ROBERT KUTTNER: Their strategy was cut a deal with the insurance companies, the drug industry going in. And the deal was, we're not going to attack your customer base, we're going to subsidize a new customer base. And that script was pre-cooked so it's not surprising that this is what comes out the other side. Once the White House made this deal with the insurance companies, the public option was never going to be anything more than a fig leaf. And over the summer and the fall, it got whittled down, whittled down, whittled down to almost nothing and now it's really nothing.

Note: For lots more on corporate and government corruption from reliable sources, click here and here.

A key terror suspect who allegedly helped to plan last year’s attacks in Mumbai and plotted to strike Europe was an American secret agent who went rogue, Indian officials believe. David Headley, 49, who was born in Washington to a Pakistan diplomat father and an American mother, was arrested in Chicago in October. He has denied the charges. He came to the attention of the US security services in 1997 when he was arrested in New York for heroin smuggling. He earned a reduced sentence by working for the US Drug Enforcement Agency (DEA) infiltrating Pakistan-linked narcotics gangs. Indian investigators, who have been denied access to Mr Headley, suspect that he remained on the payroll of the US security services — possibly working for the Central Intelligence Agency (CIA) — but switched his allegiance to LeT. “India is looking into whether Headley worked as a double agent,” an Indian Home Ministry official said yesterday. Mr Headley, who changed his name from Daood Gilani, was in Mumbai until two weeks before the attacks on the city. Despite being firmly on the radar of the US intelligence agencies, he was allowed to return to India as recently as March. Indian officials are furious that their American counterparts did not share details of that visit at the time. The Indian media has raised the possibility that Mr Headley was being protected by his American handlers — a theory that experts say is credible.

Note: For many other reports from major media sources that raise profound questions about the official account of "terrorism," 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.