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Government Corruption News Articles
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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.


The F.B.I.’s Anthrax Case
2010-02-28, New York Times
http://www.nytimes.com/2010/02/28/opinion/28sun2.html

The Federal Bureau of Investigation has issued a report that is supposed to clinch the case that a lone scientist mailed anthrax-laced letters in 2001, terrorizing a country already traumatized by the 9/11 attacks. The agency cites voluminous circumstantial evidence ... but its report leaves too many loose ends to be taken as a definitive verdict. The scientist — Dr. Bruce Ivins, an Army biodefense expert — killed himself in 2008 as the investigation moved ever closer to an indictment. That means the evidence and the F.B.I.’s conclusion that he was the culprit and acted alone will never be tested in court. Problematic is the investigative work that led the F.B.I. to conclude that only Dr. Ivins, among perhaps 100 scientists who had access to the same flask, could have sent the letters. The case has always been hobbled by a lack of direct evidence tying Dr. Ivins to the letters. No witnesses who saw him prepare the powdered anthrax or mail the letters. No anthrax spores in his house or car. No incriminating fingerprints, fibers or DNA. No confession to a colleague or in a suicide note, just opaque ramblings in e-mail that the F.B.I. interprets as evidence of guilt. The F.B.I. has a troubling history of building a circumstantial case against suspects who are later exonerated. We ... agree with Representative Rush Holt of New Jersey, who is calling for an independent assessment to validate the findings.

Note: For a recent Wall Street Journal report on the unsolved anthrax attacks, click here.


Justice Dept. Reveals More Missing E-Mail Files
2010-02-26, New York Times
http://www.nytimes.com/2010/02/27/us/27justice.html

Large batches of e-mail records from the Justice Department lawyers who worked on the 2002 legal opinions justifying the Bush administration’s brutal interrogation techniques are missing. At a Senate Judiciary Committee hearing, Senator Patrick J. Leahy, the Vermont Democrat who leads the panel, angrily demanded to know what had happened to the e-mail files, and he noted that the destruction of government records, including official e-mail messages, was a criminal offense. He said the records gap called into question the completeness of the department’s internal reviews of the work done by the lawyers in the Bush years. The Justice Department’s Office of Professional Responsibility, which spent more than four years investigating the handling of the legal opinions about interrogation policies after the Sept. 11 attacks, pushed to get access to a range of e-mail records and other internal documents from the Justice Department to aid in its investigation. But it discovered that many e-mail messages to and from John C. Yoo, who wrote the bulk of the legal opinions for the Justice Department’s Office of Legal Counsel, were missing. Also deleted were a month’s worth of e-mail files from the summer of 2002 for Patrick Philbin, another Justice Department lawyer who worked on the interrogation opinions.

Note: For powerful exposures from reliable sources of growing government secrecy, click here.


A Vision of Iceland as a Haven for Journalists
2010-02-22, New York Times
http://www.nytimes.com/2010/02/22/business/media/22link.html

Iceland, where the journalists run free. Iceland is considering a new vision: to become a haven for journalists and publishers by offering some of the most aggressive protections for free speech and investigative journalism in the world. The proposal, the Icelandic Modern Media Initiative, combines in a single piece of legislation provisions from around the world: whistle-blower laws and rules about Internet providers from the United States; source protection laws from Belgium; freedom of information laws from Estonia and Scotland, among others; and New York State’s law to counteract “libel tourism,” the practice of suing in courts, like Britain’s, where journalists have the hardest time prevailing. “We would become the inverse of a tax haven,” said Birgitta Jonsdottir, a member of Parliament and a sponsor of the initiative. “They are trying to make everything opaque. We are trying to make it transparent.” For many observers, this legislation represents a direct reversal of recent Icelandic history. Secret dealings by a few banks in Iceland, combined with a lack of regulation and oversight, led to calamitous debts that were nine times the gross domestic product. In response, Iceland would institutionalize the most aggressive sunshine laws possible.


U.S. data about Guantanamo detainee's treatment is revealed in Britain
2010-02-11, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2010/02/10/AR20100210019...

The British government [has] disclosed once-secret details of the United States' harsh treatment of a former Guantanamo Bay detainee after losing a lengthy legal battle to suppress the information. According to the information, from a judge's summary of a classified CIA report to British authorities, Binyam Mohamed was subjected to "cruel, inhuman and degrading" treatment during interrogations in Pakistan in 2002, including being shackled and deprived of sleep while interrogators played upon "his fears of being removed from United States custody and 'disappearing.' " Mohamed, 31, was born in Ethiopia and lives in Britain. Arrested in Pakistan in 2002, he says he was tortured by American authorities and others under U.S. instruction there and in Morocco. He says he was beaten with a leather strap, subjected to a mock execution and sliced with a scalpel on his chest and penis. Mohamed says Britain knew about his treatment because information used during his questioning could have come only from British intelligence. He spent seven years in detention, four of them at the U.S. military prison at Guantanamo Bay, Cuba. Reprieve, a legal organization representing Mohamed in a lawsuit against the British government, said in a statement that the disclosures show that "the U.S. documented their efforts to abuse Mr. Mohamed" and that British authorities "knew he was being abused and did nothing about it."

Note: For lots more from reliable sources on the illegal actions undertaken by the US and UK in the prosecution of the fraudulent "war on terror," click here.


Pentagon to Increase Stock of High-Altitude Drones
2010-02-05, BusinessWeek/Bloomberg News
http://www.businessweek.com/news/2010-02-05/pentagon-to-increase-stock-of-hig...

The U.S. military plans to more than triple its inventory of high-altitude, armed and unarmed drones capable of 24-hour patrols. The long-range aviation plan delivered to Congress Feb. 2 calls for 800 high-altitude drones, up from 220 currently. “We can’t get enough drones,” General David Petraeus, head of the U.S. Central Command, which includes the Afghanistan and Iraq war theaters, said in a speech Jan. 19. Of the military’s 6,819 unmanned aircraft, only the high- altitude “long-endurance” drones can provide ground commanders wide-ranging, round-the-clock surveillance and the opportunity for instant strike. The new planes will include Global Hawks built by Los Angeles-based Northrop Grumman Corp. and Predator and Reaper drones. The Air Force uses those three model drones in Iraq and Afghanistan. Northrop also will build its new “broad-area’’ surveillance aircraft for the Navy. The U.S. military currently flies about 39 combat-air patrols for 24 hours each over Iraq and Afghanistan, according to Air Force Lieutenant General David Deptula. The Pentagon has said it would increase the patrols to 50 a day in the next two years and 65 by 2013.

Note: For key reports from media sources on new weapons development by the Pentagon, click here and here.


FBI broke law for years in phone record searches
2010-01-19, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/18/AR20100118039...

The FBI illegally collected more than 2,000 U.S. telephone call records between 2002 and 2006 by invoking terrorism emergencies that did not exist or simply persuading phone companies to provide records, according to internal bureau memos and interviews. FBI officials issued approvals after the fact to justify their actions. E-mails obtained by The Washington Post detail how counterterrorism officials inside FBI headquarters did not follow their own procedures that were put in place to protect civil liberties. A Justice Department inspector general's report due out this month is expected to conclude that the FBI frequently violated the law with its emergency requests. FBI officials said they thought that nearly all of the requests involved terrorism investigations. FBI general counsel Valerie Caproni said ... that the FBI technically violated the Electronic Communications Privacy Act when agents invoked nonexistent emergencies to collect records.

Note: The FBI, by admitting that "nearly all" of the phone records they obtained were related to "terrorism investigations," make it clear that some were not. But they used claims of "terrorism emergency" to obtain them. These they then assert were merely "technical" violations. For many disturbing reports from major media sources on the increasing threats to civil liberties under the pretext of the "war on terrorism," click here.


Vets: Burn pits are killing us
2010-01-16, Salt Lake Tribune
http://www.sltrib.com/News/ci_14182242

From the testing of chemical and biological weapons on soldiers and some civilians during the Cold War, to the vast use of toxic herbicides such as Agent Orange in Vietnam, to the unexplained illnesses suffered by veterans of the first war in Iraq, military service has sickened generation after generation of U.S. service members. But when confronted with ill and dying veterans, the nation's military leaders have turned to a time-honored tradition: denial. For years flames lapped at the sky, sending thick black plumes of smoke into the air across Iraq and Afghanistan. Yet even as the military's own environmental health experts quietly warned that the toxic fumes from open-air burn pits, located at every major U.S. base across the war zones, might sicken troops, military health officials stood their ground. The pits, they said, were not a danger. But veterans groups, families and members of Congress pressed for a more thorough investigation as thousands of warfighters returned suffering from respiratory illnesses, skin diseases, cancers and blood diseases.


Ex-Homeland Security chief head said to abuse public trust by touting body scanners
2010-01-01, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/31/AR20091231028...

Since the attempted bombing of a U.S. airliner on Christmas Day, former Homeland Security secretary Michael Chertoff has given dozens of media interviews touting the need for the federal government to buy more full-body scanners for airports. What he has made little mention of is that the Chertoff Group, his security consulting agency, includes a client that manufactures the machines. An airport passengers' rights group ... criticized Chertoff, who left office less than a year ago, for using his former government credentials to advocate for a product that benefits his clients. "Mr. Chertoff should not be allowed to ... privately gain from the sale of full-body scanners under the pretense that the scanners would have detected this particular type of explosive," said Kate Hanni, founder of FlyersRights.org, which opposes the use of the scanners. Chertoff's advocacy for the technology dates back to his time in the Bush administration. In 2005, Homeland Security ordered the government's first batch of the scanners. Today, 40 body scanners are in use at 19 U.S. airports. The number is expected to skyrocket at least in part because of the Christmas Day incident. The Transportation Security Administration this week said it will order 300 more machines.

Note: For lots more on the profiteering that underlies "the war on terror," click here.


Police expect Mumbai-style terror attack on City of London
2009-12-20, Times of London
http://www.timesonline.co.uk/tol/news/uk/crime/article6962867.ece

Scotland Yard has warned businesses in London to expect a Mumbai-style attack on the capital. In a briefing in the City of London ... a senior detective from SO15, the Metropolitan police counter-terrorism command, said: “Mumbai is coming to London.” The detective said companies should anticipate a shooting and hostage-taking raid “involving a small number of gunmen with handguns and improvised explosive devices”. The warning — the bluntest issued by police — has underlined an assessment that a terrorist cell may be preparing an attack on London early next year. It was issued by the Met through its network of “security forums”, which provide business leaders, local government and the emergency services with counter-terrorism advice. Officials now report an increase in “intelligence chatter” — communications captured by electronic eavesdropping agencies. One senior security adviser said the police warnings had intensified and become much more specific in the past fortnight. “Before, there has been speculation. Now we are getting what appears to be a definite plot to carry out a firearms attack on London,” he said. Earlier this year, police, military and intelligence services held an exercise in Kent to see whether they could defeat a commando raid in London by terrorists.

Note: How can police "expect" a terror attack? Why wouldn't they be able to thwart it if they have enough information to expect it? With profound questions about the reality of the Mumbai attacks and "terrorism" still unanswered, this prediction of similar attacks in London raises suspicions that the reality may be quite different from what the police are saying. For many other reports from reliable sources that raise profound questions about the official accounts of "terrorist incidents," click here.


Millions of missing Bush admin. e-mails found
2009-12-14, MSNBC/Associated Press
http://www.msnbc.msn.com/id/34419592

Computer technicians have found 22 million missing White House e-mails from the administration of President George W. Bush ... according to two groups that filed suit over the failure by the Bush White House to install an electronic record keeping system. The two private groups – Citizens for Responsibility and Ethics in Washington [CREW] and the National Security Archive – said Monday they were settling the lawsuits they filed against the Executive Office of the President in 2007. It will be years before the public sees any of the recovered e-mails because they will now go through the National Archives' process for releasing presidential and agency records. Presidential records of the Bush administration won't be available until 2014 at the earliest. The 22 million e-mails "would never have been found but for our lawsuits and pressure from Capitol Hill," said Anne Weismann, chief counsel for CREW. "It was only then that they did this reanalysis and found as a result that there were 22 million e-mails that they were unable to account for before." "We may never discover the full story of what happened here," said Melanie Sloan, CREW's executive director. "It seems like they just didn't want the e-mails preserved." Sloan said the latest count of misplaced e-mails "gives us confirmation that the Bush administration lied when they said no e-mails were missing."

Note: For lots more on government secrecy from reliable sources, click here.


Poor Children Likelier to Get Antipsychotics
2009-12-12, New York Times
http://www.nytimes.com/2009/12/12/health/12medicaid.html

New federally financed drug research reveals a stark disparity: children covered by Medicaid are given powerful antipsychotic medicines at a rate four times higher than children whose parents have private insurance. And the Medicaid children are more likely to receive the drugs for less severe conditions than their middle-class counterparts, the data shows. Those findings, by a team from Rutgers and Columbia, are almost certain to add fuel to a long-running debate. Do too many children from poor families receive powerful psychiatric drugs not because they actually need them – but because it is deemed the most efficient and cost-effective way to control problems that may be handled much differently for middle-class children? The questions go beyond the psychological impact on Medicaid children, serious as that may be. Antipsychotic drugs can also have severe physical side effects, causing drastic weight gain and metabolic changes resulting in lifelong physical problems. Part of the reason is insurance reimbursements, as Medicaid often pays much less for counseling and therapy than private insurers do. Studies have found that children in low-income families may have a higher rate of mental health problems – perhaps two to one – compared with children in better-off families. But that still does not explain the four-to-one disparity in prescribing antipsychotics.

Note: For many important health reports from reliable sources, click here.


Mark Pittman, Reporter Who Challenged Fed Secrecy, Dies at 52
2009-11-30, Bloomberg News
http://www.bloomberg.com/apps/news?pid=20601109&sid=af7QohP8YdRo&pos=12

Mark Pittman, the award-winning reporter whose fight to make the Federal Reserve more accountable to taxpayers led Bloomberg News to sue the central bank and win, died Nov. 25 in Yonkers, New York. He was 52. Pittman suffered from heart-related illnesses. “He was one of the great financial journalists of our time,” said Joseph Stiglitz, a professor at Columbia University in New York and the winner of the 2001 Nobel Prize for economics. “His death is shocking.” A former police-beat reporter who joined Bloomberg News in 1997, Pittman wrote stories in 2007 predicting the collapse of the banking system. That year, he won the Gerald Loeb Award from the UCLA Anderson School of Management, the highest accolade in financial journalism, for "Wall Street’s Faustian Bargain," a series of articles on the breakdown of the U.S. mortgage industry. Pittman’s push to open the Fed to more scrutiny resulted in an Aug. 24 victory in Manhattan Federal Court affirming the public’s right to know about the central bank’s more than $2 trillion in assistance to financial firms.

Note: To see a one-minute video of mind-blowing US Congressional testimony on a CIA dart gun which can easily cause a heart attack, click here. The poison from this gun is undetectable on autopsy. Could such a weapon be used by the rich and powerful bankers who might want to silence someone who threatens literally billions of dollars of profits, someone like Mark Pittman?


Afghans Detail Detention in ‘Black Jail’ at U.S. Base
2009-11-29, New York Times
http://www.nytimes.com/2009/11/29/world/asia/29bagram.html

An American military detention camp in Afghanistan is still holding inmates ... without access to the International Committee of the Red Cross. The site, known to detainees as the black jail, consists of individual windowless concrete cells, each illuminated by a single light bulb glowing 24 hours a day. Former detainees said that their only human contact was at twice-daily interrogation sessions. While Mr. Obama signed an order to eliminate so-called black sites run by the [CIA] in January, it did not also close this jail, which is run by military Special Operations forces. Military officials said as recently as this summer that the Afghanistan jail and another like it at the Balad Air Base in Iraq were being used to interrogate high-value detainees. And officials said recently that there were no plans to close the jails. All three former detainees interviewed by The New York Times complained of being held for months after the intensive interrogations were over without being told why. Human rights researchers say they worry that the jail remains in the shadows and largely inaccessible both to the Red Cross and the Afghan Independent Human Rights Commission.

Note: For many revealing reports from major media sources on the worsening threats to civil liberties, click here.


U.S. readies plan to ID departing visitors
2009-11-08, Washingon Post
http://www.washingtonpost.com/wp-dyn/content/article/2009/11/07/AR20091107031...

The Department of Homeland Security is finalizing a proposal to collect fingerprints or eye scans from all foreign travelers at U.S. airports as they leave the country, officials said, a costly screening program that airlines have opposed. The plan ... would collect fingerprints at airport security checkpoints, departure gates or terminal kiosks, allowing the government to track when roughly 35 million foreign visitors a year. In a concession to industry, DHS said it probably will drop plans to require airlines to pay for the bulk of the program and is looking to cut costs, which could reach $1 billion to $2 billion over a decade, largely to be paid by taxpayers or foreign travelers. In addition, the program would not operate for now at land borders, where 80 percent of noncitizens enter and leave the country, because fingerprinting travelers there could cost billions more and significantly delay commerce. Congress focused on inbound travelers after the [September 11, 2001 attacks,] appropriating $3 billion since 2003 on the US-VISIT tracking program. The program collects biological identifiers, such as fingerprints and digital photographs, from all arriving foreigners except Canadians and Mexicans with special border-crossing cards. By the time Bush administration officials unveiled a $3.5 billion program in April 2008, however, political impetus for changes had weakened.

Note: For many reports from major media sources of growing government threats to civil liberties, click here.


Brother of Afghan Leader Said to Be Paid by C.I.A.
2009-10-28, New York Times
http://www.nytimes.com/2009/10/28/world/asia/28intel.html

Ahmed Wali Karzai, the brother of the Afghan president and a suspected player in the country’s booming illegal opium trade, gets regular payments from the Central Intelligence Agency, and has for much of the past eight years, according to current and former American officials. The C.I.A.’s practices ... suggest that the United States is not doing everything in its power to stamp out the lucrative Afghan drug trade, a major source of revenue for the Taliban. The relationship between Mr. Karzai and the C.I.A. is wide ranging. He helps the C.I.A. operate a paramilitary group, the Kandahar Strike Force, that is used for raids against suspected insurgents. On at least one occasion, the strike force has been accused of mounting an unauthorized operation against an official of the Afghan government. Mr. Karzai is also paid for allowing the C.I.A. and American Special Operations troops to rent a large compound outside the city. “He’s our landlord,” a senior American official said, speaking on the condition of anonymity. A former C.I.A. officer with experience in Afghanistan said the agency relied heavily on Ahmed Wali Karzai, and often based covert operatives at compounds he owned.

Note: To read an analysis of these revelations, which argues that there is a much bigger story of "heavy dependence by U.S. and NATO counterinsurgency forces on Afghan warlords for security", click here.


Derivatives: Don’t Let Exceptions Kill the Rule
2009-10-18, New York Times
http://www.nytimes.com/2009/10/18/business/economy/18gret.html

Congress began the work of reforming our troubled financial system last week, and a bill aimed at regulating derivatives passed the House Financial Services Committee on Thursday. Derivatives — contracts that theoretically protect buyers from unforeseen financial calamities but more often are used to fuel raw speculation — were ... at the heart of the banking crisis. Credit default swaps ... propelled the American International Group off the cliff. Those swaps also linked millions of trading partners, creating a web in which one default threatened to produce a chain of corporate and economic failures worldwide. And derivatives aren’t going away. So reforming the $42 trillion market for credit swaps is crucial if taxpayers are to be protected from future rescues of institutions deemed not only too big but also too interconnected to fail. The best aspect of the House bill is that it requires many swaps to be traded on exchanges just like stocks, subjecting them for the first time to the light of day. But elsewhere in the bill, ... exceptions to this exchange-trading rule undermine its regulatory power. Big banks dealing in swaps don’t want exchange trading, where pricing and the identities of participants would be more publicly transparent. Michael Greenberger, a University of Maryland law professor and an expert in derivatives, criticized the House bill. “The plain language of the legislation can only be read as a Christmas tree of decorative gifts to the banking industry,” he said. “And this is being done when people acknowledge the unregulated O.T.C. derivatives market was a principal reason for the meltdown.”

Note: For lots more on the realities of the Wall Street bailout, click here.


C.I.A. Is Still Cagey About Oswald Mystery
2009-10-17, New York Times
http://www.nytimes.com/2009/10/17/us/17inquire.html

Is the Central Intelligence Agency covering up some dark secret about the assassination of John F. Kennedy? For six years, the agency has fought in federal court to keep secret hundreds of documents from 1963, when an anti-Castro Cuban group it paid clashed publicly with the soon-to-be [alleged] assassin, Lee Harvey Oswald. The files in question, some released under direction of the court and hundreds more that are still secret, involve the curious career of George E. Joannides, the case officer who oversaw the dissident Cubans in 1963. In 1978, the agency made Mr. Joannides the liaison to the House Select Committee on Assassinations — but never told the committee of his earlier role. That concealment has fueled suspicion that Mr. Joannides’s real assignment was to limit what the House committee could learn about C.I.A. activities. The agency’s deception was first reported in 2001 by Jefferson Morley, who has doggedly pursued the files ever since. Mr. Morley, 51, [is] a former Washington Post reporter and the author of a 2008 biography of a former C.I.A. station chief in Mexico. After losing an appeals court decision in Mr. Morley’s lawsuit, the C.I.A. released material last year confirming Mr. Joannides’s deep involvement with the anti-Castro Cubans who confronted Oswald. But the agency is withholding 295 specific documents from the 1960s and ’70s, while refusing to confirm or deny the existence of many others. The deceptions began in 1964 with the Warren Commission. The C.I.A. hid its schemes to kill Fidel Castro and its ties to the anti-Castro Directorio Revolucionario Estudantil, or Cuban Student Directorate, which received $50,000 a month in C.I.A. support during 1963. In the years since Oswald was named as the assassin, speculation about who might have been behind him has never ended.

Note: For WantToKnow.info team member Peter Dale Scott's analysis of the extraordinary significance of this New York Times article, click here. For two revealing clips suggesting the official explanation of the JFK assassination was manipulated, click here (for a five-minute clip from the History Channel) and here (for a highly revealing documentary from a CBS affiliate).


Open Letter To New York State Over Mandatory Vaccination
2009-09-30, CBS News blog
http://www.cbsnews.com/blogs/2009/09/30/taking_liberties/entry5353611.shtml

As a group of healthcare workers, we are being mandated by a new New York state law to receive the seasonal flu vaccine and H1N1 vaccines. If we do not receive these vaccines by November 30th, that inaction is to be considered our resignation. We must sign a consent for the vaccines prior to their administration. The manufacturers have been granted immunity by the government; they cannot be sued for untoward effects. We do not want to receive these vaccines. Our educated studies of risks versus benefits conclude that the risks of the vaccine are greater than the possible benefits. All health care workers with direct patient care are mandated to receive the vaccine, so the coercion is real -- we cannot just go find a job "somewhere else." And the job market of 2009 does not offer opportunity in a different arena where we could still feed our families. We understand the fear that swine flu and influenza has generated. While our sources of information indicate that swine flu is not a pandemic, we know that the slanted research fed by the media offers results intended to frighten the public. We do not have the power to stop the fear that mass hype is able to generate. We hear the hype you are fed. We do not want to bring you harm, but we should not be forced into harm's way ourselves.

Note: For more on mandatory flu vaccinations, click here.


Sorry, we can't tell you. And we can't tell you that we can't
2009-09-23, The Guardian (One of the UK's leading newspaper)
http://www.guardian.co.uk/commentisfree/libertycentral/2009/sep/23/gagging-or...

The battle against "legalese" ... has made steady progress since the term was first coined in the early 20th century. Yet one uniquely baffling genre of court document continues to grow: a new generation of omnipotent injunctions ... more abstract, all-encompassing, and powerful [than simple injunctions]. [Imagine] one that, in addition to prohibiting publication of information, ordered that you "must not use and must not publish or communicate or disclose the information that A has obtained an injunction". Regrettably, this is not a rare Kafkaesque experiment in civil procedure. It is, in fact, reality in a growing number of cases brought before England and Wales's high court. Of course it is impossible to say just how many of these cases there are. The parties are unable to discuss them, so their existence often passes by unnoticed by a wider audience; and even where the existence of these injunctions does come to the attention of the press, journalists are equally bound by their terms, risking contempt of court should they report them. There are indications though, that these once rare weapons are becoming a more regular feature of the legal battlefield. More alarming still is the fact that corporations, with motives centred more on their brand and reputation than personal disaster, are invoking these orders, gagging others from saying they have been gagged, let alone whatever they initially wanted to speak out about.


Fed Rejects Geithner Request for Study of Governance, Structure
2009-09-21, Bloomberg News
http://www.bloomberg.com/apps/news?pid=20601068&sid=adjvXg1zP.zY

The Federal Reserve Board has rejected a request by U.S. Treasury Secretary Timothy Geithner for a public review of the central bank’s structure and governance, three people familiar with the matter said. U.S. lawmakers have also called for a review of the Fed’s power and structure, saying Fed Chairman Ben S. Bernanke overstepped his authority as he bailed out creditors of Bear Stearns Cos. and American International Group Inc. while battling a crisis that led to $1.62 trillion in writedowns and losses at financial firms. While the report requested by the Treasury hasn’t been formally scrapped, no work has been done on the project, which was due Oct. 1. Treasury spokesman Andrew Williams declined to comment, as did Fed spokeswoman Michelle Smith. Congressional leaders have balked at the notion of giving the Fed more power and are leaning toward vesting authority over capital, liquidity and risk-management practices of big banks in a council of regulators.

Note: To understand how business corrupts politicians watch the heated MSNBC News clip at this link.


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