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Note: Explore our full index to key excerpts of revealing 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.
Lawrence H. Summers, the top economic adviser to President Obama, earned more than $5 million last year from the hedge fund D. E. Shaw and collected $2.7 million in speaking fees from Wall Street companies that received government bailout money, the White House disclosed. Mr. Summers, the director of the National Economic Council, wields important influence over Mr. Obama’s policy decisions for the troubled financial industry, including firms from which he recently received payments. Last year, he reported making 40 paid appearances, including a $135,000 speech to the investment firm Goldman Sachs, in addition to his earnings from the hedge fund, a sector the administration is trying to regulate. Mr. Summers’s role at the White House includes advising Mr. Obama on whether — and how — to tighten regulation of hedge funds, which engage in highly sophisticated financial trading that many analysts have said contributed to the economic collapse. Mr. Summers ... appeared before large Wall Street companies like Citigroup ($45,000), J. P. Morgan ($67,500) and the now defunct Lehman Brothers ($67,500), according to his disclosure report. While Mr. Obama campaigned on a pledge to restrict lobbyists from working in the White House, a step intended to reduce any influence between the administration and corporations, the ban did not apply to former executives like Mr. Summers, who was not a registered lobbyist. In 2006, he became a managing director of D. E. Shaw, a firm that manages about $30 billion in assets, making it one of the biggest hedge funds in the world.
Note: For many revealing reports on the realities behind the Wall Street bailouts, click here.
BILL MOYERS: For months now, revelations of the wholesale greed and blatant transgressions of Wall Street have reminded us that "The Best Way to Rob a Bank Is to Own One." In fact, the man you're about to meet wrote a book with just that title. Bill Black, ... what's your definition of fraud? WILLIAM K. BLACK: Fraud is deceit. And the essence of fraud is, "I create trust in you, and then I betray that trust, and get you to give me something of value." And as a result, there's no more effective acid against trust than fraud, especially fraud by top elites, and that's what we have. Well, The way that you do it is to make really bad loans, because they pay better. Then you grow extremely rapidly, in other words, you're a Ponzi-like scheme. And the third thing you do is we call it leverage. That just means borrowing a lot of money, and the combination creates a situation where you have guaranteed record profits in the early years. That makes you rich, through the bonuses that modern executive compensation has produced. It also makes it inevitable that there's going to be a disaster down the road. BILL MOYERS: So you're ... saying that CEOs of some of these banks and mortgage firms in order to increase their own personal income, deliberately set out to make bad loans? WILLIAM K. BLACK: Yes. BILL MOYERS: If I wanted to go looking for the parties to this, with a good bird dog, where would you send me? WILLIAM K. BLACK: Well, that's exactly what hasn't happened. We haven't looked, all right? You'd look at the specialty lenders. The lenders that did almost all of their work in the sub-prime and what's called Alt-A, liars' loans.
Note: William K. Black is the former senior regulator who cracked down on banks during the savings and loan crisis of the 1980s. He is now an Associate Professor of Economics and Law at the University of Missouri. The video of this fascinating interview is available here. For a powerfully revealing archive of reports from reliable sources on the hidden realities of the financial bailout, click here.
The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity. A single clause in Point 19 of the communiqué issued by the G20 leaders amounts to revolution in the global financial order. "We have agreed to support a general SDR allocation which will inject $250bn (Ł170bn) into the world economy and increase global liquidity," it said. SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century.In effect, the G20 leaders have activated the IMF's power to create money and begin global "quantitative easing". In doing so, they are putting a de facto world currency into play. It is outside the control of any sovereign body. Conspiracy theorists will love it. There is now a world currency in waiting. In time, SDRs are likely evolve into a parking place for the foreign holdings of central banks, led by the People's Bank of China. Beijing's moves this week to offer $95bn in yuan currency swaps to developing economies show how fast China aims to break dollar dependence.
Note: For an extensive archive of key reports on the hidden realities of the Wall Street bailout, click here.
A once-obscure accounting rule that infuriated banks ... was changed Thursday to give banks more discretion in reporting the value of mortgage securities. The change seems likely to allow banks to report higher profits by assuming that the securities are worth more than anyone is now willing to pay for them. But critics objected that the change could further damage the credibility of financial institutions by enabling them to avoid recognizing losses from bad loans they have made. Critics also said that since the rules were changed under heavy political pressure, the move compromised the independence of the organization that did it, the Financial Accounting Standards Board. During the financial crisis, the market prices of many securities, particularly those backed by subprime home mortgages, have plunged to fractions of their original prices. That has forced banks to report hundreds of billions of dollars in losses over the last year, because some of those securities must be reported at market value each three months, with the bank showing a profit or loss based on the change. At first FASB ... resisted making changes, but that changed within a few days of a Congressional hearing at which legislators from both parties demanded the board act. “There is a perception that we are yielding to political pressure,” one board member, Lawrence W. Smith, said as he voted for the changes. A group headed by two former chairmen of the Securities and Exchange Commission, one who served under President Bill Clinton and one who was appointed by President George W. Bush, said that it feared that politicization of accounting standards would destroy the credibility of the board.
Note: For many revealing reports on the realities behind the Wall Street bailouts, click here.
NATO leaders gathered here Friday to celebrate the 60th anniversary of [the] alliance ... also must face the harsh reality that NATO’s first military mission outside Europe is failing in a way that risks fracturing the alliance. Obama, [by] increasing American troops in Afghanistan to some 68,000 by the end of the year from 38,000 today, is also likely to significantly Americanize an operation that in recent years had been divided equally between American troops and allied forces. By year’s end, American troops will outnumber allied forces by at least two to one. His NATO allies are giving ... him very few new troops on the ground, underlining the fundamental strains in the alliance. The allies will offer more funds but no more than several thousand new personnel members, according to alliance military planners. Many of those will not be soldiers, but police trainers to meet a central pillar of the president’s new Afghan strategy, which focuses on an expansion of Afghan security forces. But even for the small numbers of European combat reinforcements, check the fine print: Nearly all will be sent to provide security for Afghanistan’s elections this summer, and will not be permanently deployed. Defense Secretary Robert M. Gates and his British counterpart, John Hutton, have publicly warned that the performance of some European troops demonstrates that NATO risks slipping toward a two-tiered alliance. In that event, it would be divided between those that can and will fight, like Britain, Canada, France and Poland, and those that cannot or will not because of public opinion at home.
Note: Why does the U.S. need a strong presence in Afghanistan? Obama is clearly giving in to the military/industrial complex by pouring billions of tax dollars into operations in this country where military contractors can reap huge profits. For the comments of a top U.S. general revealing the deeper reasons behind war, click here. For further important revelations from reliable sources about the wars in Iraq and Afghanistan, click here.
Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and buses after that. The goal, which radiates from the very top of the Chinese government, suggests that Detroit’s Big Three, already struggling to stay alive, will face even stiffer foreign competition on the next field of automotive technology than they do today. To some extent, China is making a virtue of a liability. It is behind the United States, Japan and other countries when it comes to making gas-powered vehicles, but by skipping the current technology, China hopes to get a jump on the next. The United States has been a laggard in alternative vehicles. G.M.’s plug-in hybrid Chevrolet Volt is scheduled to go on sale next year, and will be assembled in Michigan using rechargeable batteries imported from LG in South Korea. China’s intention, in addition to creating a world-leading industry that will produce jobs and exports, is to reduce urban pollution and decrease its dependence on oil, which comes from the Mideast and travels over sea routes controlled by the United States Navy. Beyond manufacturing, subsidies of up to $8,800 are being offered to taxi fleets and local government agencies in 13 Chinese cities for each hybrid or all-electric vehicle they purchase. China wants to raise its annual production capacity to 500,000 hybrid or all-electric cars and buses by the end of 2011, from 2,100 last year.
Note: For lots more on new developments in auto and energy technologies from reliable sources, click here.
For the first time, MIT researchers have shown they can genetically engineer viruses to build both the positively and negatively charged ends of a lithium-ion battery. The new virus-produced batteries have the same energy capacity and power performance as state-of-the-art rechargeable batteries being considered to power plug-in hybrid cars, and they could also be used to power a range of personal electronic devices, said Angela Belcher, the MIT materials scientist who led the research team. The new batteries ... could be manufactured with a cheap and environmentally benign process: The synthesis takes place at and below room temperature and requires no harmful organic solvents, and the materials that go into the battery are non-toxic. In a traditional lithium-ion battery, lithium ions flow between a negatively charged anode, usually graphite, and the positively charged cathode, usually cobalt oxide or lithium iron phosphate. Three years ago, an MIT team led by Belcher reported that it had engineered viruses that could build an anode by coating themselves with cobalt oxide and gold and self-assembling to form a nanowire. In the latest work, the team focused on building a highly powerful cathode to pair up with the anode. Cathodes are more difficult to build than anodes because they must be highly conducting to be a fast electrode. Most candidate materials for cathodes are highly insulating (non-conductive). To achieve that, the researchers ... genetically engineered viruses that first coat themselves with iron phosphate, then grab hold of carbon nanotubes to create a network of highly conductive material.
Note: For many reports from major media sources on promising new energy technologies, click here.
An international drug company made a hit list of doctors who had to be "neutralised" or discredited because they criticised the anti-arthritis drug the pharmaceutical giant produced. Staff at US company Merck &Co emailed each other about the list of doctors - mainly researchers and academics - who had been negative about the drug Vioxx or Merck and a recommended course of action. The email, which came out in the Federal Court in Melbourne yesterday as part of a class action against the drug company, included the words "neutralise", "neutralised" or "discredit" against some of the doctors' names. It is also alleged the company used intimidation tactics against critical researchers, including dropping hints it would stop funding to institutions and claims it interfered with academic appointments. "We may need to seek them out and destroy them where they live," a Merck employee wrote, according to an email excerpt read to the court by Julian Burnside QC, acting for the plaintiff. Merck & Co and its Australian subsidiary, Merck, Sharpe and Dohme, are being sued for compensation by more than 1000 Australians, who claim they suffered heart attacks or strokes as a result of Vioxx. The drug was launched in 1999 and at its height of popularity was used by 80 million people worldwide because it did not cause stomach problems as did traditional anti-inflammatory drugs. It was voluntarily withdrawn from sale in 2004 after concerns were raised that it caused heart attacks and strokes and a clinical trial testing these potential side affects was aborted for safety reasons. Merck last year settled thousands of lawsuits in the US over the effects of Vioxx for $US 4.85 billion, but made no admission of guilt.
Note: For lots more on corporate corruption from reliable sources, click here.
The Obama administration’s $500 billion or more proposal to deal with America’s ailing banks has been described by some in the financial markets as a win-win-win proposal. Actually, it is a win-win-lose proposal: the banks win, investors win — and taxpayers lose. Treasury hopes to get us out of the mess by replicating the flawed system that the private sector used to bring the world crashing down, with a proposal marked by overleveraging in the public sector, excessive complexity, poor incentives and a lack of transparency. In theory, the administration’s plan is based on letting the market determine the prices of the banks’ “toxic assets” — including outstanding house loans and securities based on those loans. The reality, though, is that the market will not be pricing the toxic assets themselves, but options on those assets. The two have little to do with each other. The government plan in effect involves insuring almost all losses. Since the private investors are spared most losses, then they primarily “value” their potential gains. This is exactly the same as being given an option. Under the plan by Treasury Secretary Timothy Geithner, the government would provide about 92 percent of the money to buy the asset but would stand to receive only 50 percent of any gains, and would absorb almost all of the losses. Some partnership! What the Obama administration is doing is far worse than nationalization: it is ersatz capitalism, the privatizing of gains and the socializing of losses. It is a “partnership” in which one partner robs the other.
Note: The author of this analysis, Joseph E. Stiglitz, is a professor of economics at Columbia University. He was chairman of the Council of Economic Advisers from 1995 to 1997, and was awarded the Nobel prize in economics in 2001. For many revealing reports on the realities behind the Wall Street bailouts, click here.
Don't dismiss the Nano as a small, poor man's car that will cause a mere ripple on the world market. The Nano is a radical innovation, with the potential to revolutionize automobile manufacturing and distribution. The tiny Nano incorporates three innovations, which together make it huge. First, the Nano uses a modular design that enables a knowledgeable mechanic to assemble the car in a workshop. Thus, Tata can outsource assembly to independent workshops that can then assemble the car on buyers' orders. This innovation not only removes costly labor from the manufacturer's side but also allows for distributed entrepreneurship on the dealer's side. Second, the low cost of the Nano comes from a combination of its no-frills design and its use of numerous lighter components, from simple door handles and bulbs to the transmission and engine parts. The lighter vehicle enables a more energy-efficient engine that gets 67 miles to the gallon. Third, at just 122 inches long, the Nano is one of the shortest four-passenger cars on the market, yet it allows for ample interior space. These innovations have enabled Tata to introduce the Nano at a base price of $2,000. The low price has triggered worldwide interest in the car and a surge of orders, even in a struggling auto market. The Nano has the potential of flourishing despite the recession or softening its sting because of its extraordinary low price. It's a radical innovation precisely because it is a poor man's car.
Note: For a treasure trove of inspiring developments in new energy and automotive technologies, click here.
When doctors returned to check on the patient who had almost died and been in a deep coma before being resuscitated, he thanked them for all the work they had done. He had, he told the surprised team of medics, been very impressed and had watched everything they had done. He had heard all that had been said, too, and, at one point, had been concerned when resuscitation was about to be abandoned. He then went on to describe in detail the room where he had been treated – although he had never been conscious in there. That near-death experience is one of a number recorded by Dutch doctors and one of thousands of similar cases that have now been documented in a major worldwide study. New research shows that many critically ill kidney dialysis patients have similar experiences, and that almost one in 10 heart-arrest survivors also report near-death experiences whose features include out of body sensations, bright lights, dark tunnels, and images of life events and spiritual entities. Near-death experiences are surprisingly common. In the latest study, researchers quizzed 710 kidney dialysis patients and found that, out of 70 patients who had suffered a life-threatening event, 45 had gone though a near-death experience. Near-death experiences occur in both sexes, in every culture, and at all ages.
Bill Dubé gets giddy when he talks about batteries and speed. After all, his 500-horsepower Killacycle electric motorcycle goes from 0 to 60 miles per hour in under a second. He claims it is the fastest electric vehicle on the planet. In October, the Killacycle traveled a quarter mile in 7.89 seconds, topping out at 174 mph, a record. Dubé, 56, an engineer and Rhode Island native whose day job is designing air chemistry instruments at the University of Colorado, is the bike's designer, owner, and builder. He is out to prove that electric vehicles do not have to be "nerd-mobiles." At the heart of electric vehicles like the Killacycle are the batteries. A123 Systems Inc., based in Watertown, sponsors the Killacycle and provides its battery. Dubé read about A123's lithium-ion battery technology in 2003 and decided to approach company officials. He thought drag racing was a great way to torture-test the company's innovative battery cells. "I told them I'll take the battery cells out to the drag strip and set a world record," he said. Electric-vehicle racing hit the start line about 15 years ago, when pioneers like Dubé began building the machines. "Bill is quite amazing and does pretty good promoting electric-vehicle racing in general," said Mike Willmon, president of the National Electric Drag Racing Association, based in Santa Rosa, Calif. The mission of the group, whose membership stands at 100, is to increase public awareness about the performance side of electric vehicles.
Note: Why such a weak title for this amazing bike? Why not a title like "Electric motorcycle goes 0 to 60 in one second"? Could it be the media doesn't want us to know things like this? For lots more suggesting this may be the case, click here. And for more on this amazing motorcyle and an unassuming electric car that does the quarter mile in under 12 seconds, click here.
Mexican President Felipe Calderon has warned that corruption among American officials may be making it harder to deal with drug-trafficking between Mexico and the US. Mr Calderon said violence in the border city of Juarez had fallen by 73% in the month since he sent 7,000 extra troops there. There has been open warfare in Juarez for more than a year; last year, 5,600 people were killed in drug-related attacks in Mexico, many in Juarez. President Calderon said it was impossible to smuggle [tons] of cocaine into the United States without the complicity of some American authorities. "There is trafficking in Mexico because there is corruption in Mexico," he told the BBC. "But by the same argument if there is trafficking in the United States it is because there is some corruption in the United States... It is impossible to pass tonnes of cocaine to the United States without the complicity of some American authorities." The situation along the border is very sensitive politically, and although the White House may wonder privately whether there is some corruption among some American customs, immigration and police officials, it is unlikely to admit it publicly.
Note: For powerfully revealing information on involvement of U.S. officials in the illegal drug trade, click here.
When CIA officials subjected their first high-value captive, Abu Zubaida, to waterboarding and other harsh interrogation methods, they ... succeeded in breaking him, and the stories he told of al-Qaeda terrorism plots sent CIA officers around the globe chasing leads. In the end, though, not a single significant plot was foiled as a result of Abu Zubaida's tortured confessions, according to former senior government officials who closely followed the interrogations. Nearly all of the leads attained through the harsh measures quickly evaporated, while most of the useful information from Abu Zubaida -- chiefly names of al-Qaeda members and associates -- was obtained before waterboarding was introduced, they said. Moreover, within weeks of his capture, U.S. officials had gained evidence that made clear they had [falsely accused] Abu Zubaida. Abu Zubaida was not even an official member of al-Qaeda, according to a portrait of the man that emerges from court documents and interviews with current and former intelligence, law enforcement and military sources. Rather, he was a "fixer" for radical Muslim ideologues, and he ended up working directly with al-Qaeda only after Sept. 11 -- and that was because the United States stood ready to invade Afghanistan. Since 2006, Senate intelligence committee members have pressed the CIA, in classified briefings, to provide examples of specific leads that were obtained from Abu Zubaida through the use of waterboarding and other methods, according to officials familiar with the requests. The agency provided none, the officials said.
Note: Was the torture of Abu Zubaida an error, or was it for some other purpose than extracting information from him? For many reports which raise similar questions about the so-called "Global War on Terror", click here.
The unmanned bombers that frequently cause unintended civilian casualties in Pakistan are a step toward an even more lethal generation of robotic hunters-killers that operate with limited, if any, human control. The Defense Department is financing studies of autonomous, or self-governing, armed robots that could find and destroy targets on their own. On-board computer programs, not flesh-and-blood people, would decide whether to fire their weapons. "The trend is clear: Warfare will continue and autonomous robots will ultimately be deployed in its conduct," Ronald Arkin, a robotics expert at the Georgia Institute of Technology in Atlanta, wrote in a study commissioned by the Army. Autonomous armed robotic systems probably will be operating by 2020, according to John Pike, an expert on defense and intelligence matters and the director of the security Web site GlobalSecurity.org in Washington. This prospect alarms experts, who fear that machines will be unable to distinguish between legitimate targets and civilians in a war zone. "We are sleepwalking into a brave new world where robots decide who, where and when to kill," said Noel Sharkey, an expert on robotics and artificial intelligence at the University of Sheffield, England. Human operators thousands of miles away in Nevada, using satellite communications, control the current generation of missile-firing robotic aircraft, known as Predators and Reapers. Armed ground robots, such as the Army's Modular Advanced Armed Robotic System, also require a human decision-maker before they shoot.
Note: For further reports from reliable sources on new weapons under development for future wars, click here.
America's criminal justice system has deteriorated to the point that it is a national disgrace. Its irregularities and inequities cut against the notion that we are a society founded on fundamental fairness. Our failure to address this problem has caused the nation's prisons to burst their seams with massive overcrowding, even as our neighborhoods have become more dangerous. We are wasting billions of dollars and diminishing millions of lives. We need to fix the system. Doing so will require a major nationwide recalculation of who goes to prison and for how long and of how we address the long-term consequences of incarceration. The United States has by far the world's highest incarceration rate. With 5% of the world's population, our country now houses nearly 25% of the world's reported prisoners. We currently incarcerate 756 inmates per 100,000 residents, a rate nearly five times the average worldwide of 158 for every 100,000. All told, about one in every 31 adults in the United States is in prison, in jail, or on supervised release. This all comes at a very high price to taxpayers: Local, state, and federal spending on corrections adds up to about $68 billion a year. Our overcrowded, ill-managed prison systems are places of violence, physical abuse, and hate, making them breeding grounds that perpetuate and magnify the same types of behavior we purport to fear. Post-incarceration re-entry programs are haphazard or, in some places, nonexistent, making it more difficult for former offenders who wish to overcome the stigma of having done prison time and become full, contributing members of society.
Note: The author of this analysis, Senator Jim Webb (D. Va.), is a PARADE Contributing Editor and the author of nine books, including A Time to Fight.
A Spanish court has agreed to consider opening a criminal case against six former Bush administration officials, including former Attorney General Alberto Gonzales, over allegations they gave legal cover for torture at Guantanamo Bay, a lawyer in the case said Saturday. Human rights lawyers brought the case before leading anti-terror judge Baltasar Garzon, who agreed to send it on to prosecutors to decide whether it had merit, Gonzalo Boye, one of the lawyers who brought the charges, told The Associated Press. The ex-Bush officials are Gonzales; former undersecretary of defense for policy Douglas Feith; former Vice President Dick Cheney's chief of staff David Addington; Justice Department officials John Yoo and Jay S. Bybee; and Pentagon lawyer William Haynes. Spanish law allows courts to reach beyond national borders in cases of torture or war crimes under a doctrine of universal justice. Garzon became famous for bringing charges against former Chilean dictator Augusto Pinochet in 1998, and he and other Spanish judges have agreed to investigate alleged abuses everywhere from Tibet to Argentina's "dirty war," El Salvador and Rwanda. The officials are charged with providing a legal cover for interrogation methods like waterboarding against terrorism suspects at Guantanamo, which the Spanish human rights lawyers say amounted to torture. Yoo, for instance, wrote a series of secret memos that claimed the president had the legal authority to circumvent the Geneva Conventions.
Note: It is encouraging that at least Spanish courts view it as their responsibility to prosecute torturers. For more on torture and other attacks on civil liberties, click here.
If there is one scientist who knows more about sea levels than anyone else in the world, it is the Swedish geologist and physicist Nils-Axel Mörner, formerly chairman of the INQUA International Commission on Sea Level Change. And the uncompromising verdict of Dr Mörner, who for 35 years has been using every known scientific method to study sea levels all over the globe, is that all this talk about the sea rising is nothing but a colossal scare story. Despite fluctuations down as well as up, "the sea is not rising," he says. "It hasn't risen in 50 years." If there is any rise this century it will "not be more than 10cm (four inches), with an uncertainty of plus or minus 10cm". The reason why Dr Mörner, formerly a Stockholm professor, is so certain that ... claims about sea level rise are 100 per cent wrong is that they are all based on computer model predictions, whereas his findings are based on "going into the field to observe what is actually happening in the real world". When running the International Commission on Sea Level Change, he launched a special project on the Maldives, whose leaders have for 20 years been calling for vast sums of international aid to stave off disaster. Six times he and his expert team visited the islands, to confirm that the sea has not risen for half a century.
Note: Though evidence shows that most glaciers have rapidly been melting over the past three decades, and ice in the Arctic Ocean reached a record low in 2007, there is strikingly little evidence this is causing any shift in sea level. The frequently quoted 1972 Club of Rome report "Limits to Growth" warned of a potential major rise in sea level wreaking havoc by the year 2000. Where is it? Why all the fear-mongering about rising sea levels when there is so little evidence of any rise? For many reports on global warming from reliable sources, click here.
Dr. Joseph Biederman, chief of the Massachusetts General Pediatric Psychopharmacology Clinic, is already under investigation by Harvard University and the National Institutes of Health for failing to report income received from drug companies. Biederman has strongly pushed treating children's mental illnesses with powerful antipsychotic medicines. Diagnoses like ADHD and pediatric bipolar disorder, along with psychiatric drug use in American children, have soared in the last 15 years. No other country medicates children as frequently. Now, in newly released court documents, Biederman appears to be promising drugmaker Johnson & Johnson in advance that his studies on the antipsychotic drug risperidone will prove the drug to be effective when used on preschool age children. Biederman's status at Harvard and his research have arguably made him, until recently, America's most powerful doctor in child psychiatry. Reports from court actions, along with an ongoing investigation of conflict of interest charges led by Sen. Chuck Grassley, R-Iowa, threaten to topple Biederman from his heretofore untouchable Olympian heights. Biederman's conflict of interest problems have exposed his strong pro-drug views to the public for scrutiny. Until now, fear of the Biederman team has operated quietly on the small club of child psychiatric researchers. Only when 2-year-olds started taking three psychiatric drugs simultaneously under a Biederman protocol for bipolar disorder did the emperor's clothes become so invisible as to begin the naming of names. Biederman's personal travails tragically inform us about a crisis in academic medicine that must be resolved.
Note: For a powerful overview of corruption in the pharmaceutical industry, click here.
Members of Congress and the New York State attorney general demanded detailed information Thursday on how tens of billions of taxpayer dollars flowed through the American International Group during its crisis last fall and ended up in the coffers of several dozen big banks, shielding them from losses. The new inquiries shine a spotlight on a question that is exponentially bigger, in dollars, than the $165 million in bonuses that A.I.G. paid out this month, but which has been overshadowed until now by the uproar over the bonuses. “We would like to know if the A.I.G. counterparty payments, as made, were in the best interests of the taxpayers who provided the funding,” said Representative Elijah E. Cummings, Democrat of Maryland, in a letter to Neil M. Barofsky, the special inspector general for the Troubled Asset Relief Program. The banks and investment firms that ended up with A.I.G.’s bailout money last fall were, in many cases, counterparties to derivatives contracts it had sold, known as credit-default swaps, which guaranteed the value of assets in their investment portfolios. They included Wall Street firms, like Goldman Sachs, JPMorgan Chase and Merrill Lynch, that have successfully resisted efforts to regulate credit derivatives in the past. In several hearings this month, members of Congress said they believed the derivatives had often been used to speculate, not to manage risk. They have expressed outrage that A.I.G.’s trading partners got 100 cents on the dollar for their money-losing trades when ordinary Americans paying for the bailout have suffered big losses in their 401(k) accounts and other investments.
Note: For many revealing reports on the realities behind the Wall Street bailouts, click here.
Important Note: Explore our full index to key excerpts of revealing 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.