Media ArticlesExcerpts of Key Media Articles in Major Media
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.
The CIA, which has been monitoring foreign countries' use of electronic voting systems, has reported apparent vote-rigging schemes in Venezuela, Macedonia and Ukraine and a raft of concerns about the machines' vulnerability to tampering. In a presentation that could provide disturbing lessons for the United States, where electronic voting is becoming universal, [CIA cybersecurity expert] Steve Stigall summarized what he described as attempts to use computers to undermine democratic elections in developing nations. His remarks have received no news media attention until now. Stigall told the Election Assistance Commission ... that computerized electoral systems can be manipulated at five stages, from altering voter registration lists to posting results. Stigall said voting equipment connected to the Internet could be hacked, and machines that weren't connected could be compromised wirelessly. Eleven U.S. states have banned or limited wireless capability in voting equipment, but Stigall said elections officials didn't always know it when wireless cards were embedded in their machines. Stigall said that most Web-based ballot systems had proved to be insecure. The commission has been criticized for giving states more than $1 billion to buy electronic equipment without first setting performance standards. Numerous computer-security experts have concluded that U.S. systems can be hacked, and allegations of tampering in Ohio, Florida and other swing states have triggered a campaign to require all voting machines to produce paper audit trails.
Note: For key articles from reliable sources exposing the many flaws in electronic voting systems, click here.
The Obama administration appears to be backing away from the phrase "global war on terror," a signature rhetorical legacy of its predecessor. In a memo e-mailed this week to Pentagon staff members, the Defense Department's office of security review noted that "this administration prefers to avoid using the term 'Long War' or 'Global War on Terror' [GWOT.] Please use 'Overseas Contingency Operation.' " Senior administration officials had been publicly using the phrase "overseas contingency operations" in a war context for roughly a month before the e-mail was sent. The Bush administration adopted the phrase ["Global War on Terror"] soon after the Sept. 11, 2001. But critics abroad and at home, including some within the U.S. military, said the terminology mischaracterized the nature of the enemy and its abilities. Some military officers said, for example, that classifying al-Qaeda and other anti-American militant groups as part of a single movement overstated their strength. Last month, the International Commission of Jurists urged the Obama administration to drop the phrase "war on terror." The commission said the term had given the Bush administration "spurious justification to a range of human rights and humanitarian law violations," including detention practices and interrogation methods that the International Committee of the Red Cross has described as torture.
Civil liberties advocates are accusing the Obama administration of ... adopting the same expansive arguments that his predecessor used to cloak some of the most sensitive intelligence-gathering programs of the Bush White House. The first signs have come just weeks into the new administration, in a case filed by an Oregon charity [accused] of funding terrorism. President Obama's Justice Department not only sought to dismiss the lawsuit by arguing that it implicated "state secrets," but also escalated the standoff -- proposing that government lawyers might take classified documents from the court's custody to keep the charity's representatives from reviewing them. The suit by the al-Haramain Islamic Foundation has proceeded further than any other in challenging the use of warrantless wiretaps, threatening to expose the inner workings of that program. In his campaign plan to "change Washington," Obama criticized the Bush administration, saying that it had "ignored public disclosure rules" and that it too often invoked the state-secrets privilege. Now, Obama's claim of state secrets has prompted criticism. "There [have] to be other ways to protect secret information without having to block accountability," said Erwin Chemerinsky, a law professor at the University of California at Irvine. He said that "state secrets" has become a sort of "talismanic phrase" uttered by government officials who want to dispose of inconvenient or troubling challenges to their authority.
Note: For many reports from major media sources on government secrecy, click here.
Yesterday was a great day for the people of Appalachia and for all of America. In a bold departure from Bush-era energy policy, the Obama administration suspended a coal company's permit to dump debris from its proposed mountaintop mining operation into a West Virginia valley and stream. In addition, the administration promised to carefully review upward of 200 such permits awaiting approval by the U.S. Army Corps of Engineers. Mountaintop-removal coal mining is the greatest environmental tragedy ever to befall our nation. This radical form of strip mining has already flattened the tops of 500 mountains, buried 2,000 miles of streams, devastated our country's oldest and most diverse temperate forests, and blighted landscapes famous for their history and beauty. Using giant earthmovers and millions of tons of explosives, coal moguls have eviscerated communities, destroyed homes, and uprooted and sickened families with coal and rock dust, and with blasting, flooding and poisoned water, all while providing far fewer jobs than does traditional underground mining. The Corps has been working overtime to oblige impatient coal barons by quickly issuing the pending permits. Each such permit amounts to a death sentence for streams, mountains and communities. Taken together, these pending permits threatened to lay waste to nearly 60,000 acres of mountain landscape, destroy 400 valleys and bury more than 200 miles of streams. The Corps already had issued a dozen permits before the White House stepped in.
A U.S. Navy researcher announced today that her lab has produced “significant” new results that indicate cold fusion-like reactions. If the work by analytical chemist Pamela Mosier-Boss and her colleagues is confirmed, it could open the door to a cheap, near-limitless reservoir of energy. Devising a fusion-based source of energy on Earth has long been a “clean-energy” holy grail of physicists. A small group of scientists has [tried] to produce fusion reactions at low temperatures. If such experiments did produce fusion reactions, they would generate highly energetic neutrons as a byproduct. These are what Mosier-Boss says her San Diego-based group has found. “If you have fusion going on, then you have to have neutrons,” she said. “But we do not know if fusion is actually occurring. It could be some other nuclear reaction.” Today’s announcement is based partly on research published by Mosier-Boss’ group last year in the journal Naturwissenschaften. The announcement may turn heads, given its stage at the American Chemical Society’s big meeting and the fact that the organization promoted it to science journalists in advance. “It’s big,” said Steven Krivit, founder of the New Energy Times publication, which has tracked cold fusion developments for two decades. “What we’re talking about may be more than anybody actually expected,” he said. “We’re talking about a new field of science that’s a hybrid between chemistry and physics.”
Note: For a powerful documentary showing a major cover-up around cold fusion, click here. Many highly esteemed scientists have repeatedly demonstrated the reality of cold fusion, only to have their research sometimes ruthlessly shut down. For many hopeful reports from reliable sources on the array of new energy developments currently underway, click here.
The Internal Revenue Service is not living up to its pledge to crack down on wealthy tax cheats, an IRS watchdog group says, citing a drop in audits of millionaires last year. Those with incomes of $1 million and above had a 5.6 percent chance of getting audited in fiscal year 2008, which ended last September, down from 6.8 percent the previous year, according to IRS figures. The actual number of millionaires audited fell from 23,200 to 21,874; the number of millionaires filing tax returns grew from 339,138 to 392,776. "In the face of growing federal deficits and public calls to lower the tax gap — the amount of taxes due but not reported and paid — the drop in millionaire audits is surprising," said the Syracuse University-based Transactional Records Access Clearinghouse in a report Monday. It said the significant drop in audits of richer Americans contrasted with IRS statements last year that it was making strong progress in enforcement, especially of those with incomes of more than $1 million. The TRAC report said focus on high earner returns is critical because of the huge rewards. Among those millionaire audit cases where additional taxes were recommended, the average was $198,000 after face-to-face audits and $137,000 for audits done through correspondence. In total, the IRS collected $56.4 billion in enforcement revenues last year, down from $59.2 billion in 2007 and the first decline in collections in a decade.
Note: The highly important statistic only mentioned in passing here is "the number of millionaires filing tax returns grew from 339,138 to 392,776." That's an over-15% increase in the number of millionaires in one year, while most everyone else seems to be losing money. Hmmmm. Makes you wonder.
Five Clay County [Kentucky] officials, including the circuit court judge, the county clerk, and election officers were arrested Thursday after they were indicted on federal charges accusing them of using corrupt tactics to obtain political power and personal gain. The 10-count indictment, unsealed Thursday, accused the defendants of a conspiracy from March 2002 until November 2006 that violated the Racketeering Influenced and Corrupt Organizations Act (RICO). The defendants were also indicted for extortion, mail fraud, obstruction of justice, conspiracy to injure voters' rights and conspiracy to commit voter fraud. According to the indictment, these alleged criminal actions affected the outcome of federal, local, and state primary and general elections in 2002, 2004, and 2006. Clay County Circuit Court Judge Russell Cletus Maricle, 65, and school superintendent Douglas C. Adams, 57, allegedly used their status in the county to influence the appointment of corrupt members to the Clay County Board of Election Officials. [They also] caused election officers to commit acts of extortion, mail fraud, and bribery. Clay County Clerk, Freddy Thompson, 45, allegedly provided money to election officers to be distributed by the officers to buy votes. He also instructed officers how to change votes at the voting machine. Paul E. Bishop, 60, ... hosted alleged meetings at his home where money was pooled together by candidates and distributed to election officers, including himself. He was also accused of instructing the officers how to change votes at the voting machine. The investigation preceding the indictment was conducted by the FBI, Kentucky State Police, and Appalachia
Note: For some strange reason, the article is no longer available at the link above. To read it on an MSNBC affiliate website, click here. The media have almost always proclaimed that voting machine tampering has never been proven to affect election outcome. This article demonstrates that not only does it happen, but it may be much more prevalent than most would think. For more on this indictment, click here. For more reliable information on widespread election fraud, click here.
Israelis on Friday got a fuller dose of rank-and-file angst over their army's winter assault on the Gaza Strip, as newspapers elaborated on allegations that commanders created a permissive attitude toward the killing of civilians. Soldiers' accounts of two killings of women and children appeared Thursday in Haaretz and Maariv. Both papers followed up Friday with lengthy excerpts of the soldiers’ comments about confusion and doubt over the rules of engagement during the 22-day offensive, which left an estimated 1,400 Palestinians dead. The accounts came from a Feb. 13 discussion at a military preparatory academy. AVIV: At first the specified action was to go into a house ... with an armored personnel carrier ... and start shooting inside. I call this murder. We were supposed to go up floor by floor, and any person we identified, we were supposed to shoot. I initially asked myself, "Where is the logic?" They said it was permissible because anyone who remained in the sector was in effect condemned, a terrorist, because they hadn't fled. I didn't really understand. They don't have anywhere to flee to. ... This scared me a bit. I tried to exert some influence I try to explain to the guy that not everyone in there is a terrorist, and that after he kills, say, three children and four mothers, we'll go upstairs and kill another 20 or so people. I tried to explain why we had to let them leave. It didn't really help. This is really frustrating, to see that they understand that inside Gaza you are allowed to do anything you want.
Note: For many revelations of the realities of the wars in the Middle East and Afghanistan, click here.
Two Israeli newspapers published disturbing accounts this week about misconduct by Israeli soldiers during this country's January offensive in Gaza – and one statement ... conveyed an over-riding state of mind, one that enabled at least some Israeli soldiers to carry out some thoroughly loathsome deeds while they were deployed in Gaza – including, it seems, the cold-blooded murder of Palestinian civilians. "I don't know how to describe it," said the soldier in question, a squad leader who is clearly troubled by much of what he saw. "The lives of Palestinians, let's say, is something much, much less important than the lives of our soldiers." Psychologists have at least a couple of terms for the tendency of humans to view their adversaries as springing from a lower order of being. Known either as pseudo-speciation or dehumanization, the phenomenon is as ancient as the Bible and as common nowadays as olive trees in the Holy Land. If there is one man in this country who has explored the dark side of Israel's heart, it is Yehuda Shaul, director of Breaking the Silence, an organization that collects and publishes accounts by Israeli soldiers about their sometimes brutal behaviour while on duty in the Palestinian territories. Shaul says ... "The soldiers say: `Everyone is an enemy. Everyone here is a legitimate target.' That was the notion."
Note: For a former Marine Corps general's analysis of the purposes served by the dehumanizaton of the "enemy" inculcated in soldiers by their officers, click here.
A city in Brazil recruited local farmers to help do something U.S. cities have yet to do: end hunger. More than 10 years ago, Brazil’s fourth-largest city, Belo Horizonte, declared that food was a right of citizenship and started working to make good food available to all. One of its programs puts local farm produce into school meals. This and other projects cost the city less than 2 percent of its budget. Belo, a city of 2.5 million people, once had 11 percent of its population living in absolute poverty, and almost 20 percent of its children going hungry. Then in 1993, a newly elected administration declared food a right of citizenship. The new mayor, Patrus Ananias—now leader of the federal anti-hunger effort—began by creating a city agency, which included assembling a 20-member council of citizen, labor, business, and church representatives to advise in the design and implementation of a new food system. The city already involved regular citizens directly in allocating municipal resources—the “participatory budgeting” that started in the 1970s and has since spread across Brazil. During the first six years of Belo’s food-as-a-right policy, perhaps in response to the new emphasis on food security, the number of citizens engaging in the city’s participatory budgeting process doubled to more than 31,000. The city agency developed dozens of innovations to assure everyone the right to food, especially by weaving together the interests of farmers and consumers.
Note: Why not take this movement to each of our states and provinces? Are you willing to make a difference? To contact your local and national media and political representatives, click here.
Canadian officials have denied outspoken anti-war British MP George Galloway entry into Canada on grounds he poses a threat to national security. Alykhan Velshi, a spokesperson for Immigration Minister Jason Kenney, said today Galloway has openly supported Hamas, classified as a terrorist group in Canada, as well as other terrorists. Galloway, who was expected to begin a Canadian speaking tour in Toronto on March 30, called the ban outrageous. Galloway said his supposed support for Hamas amounted to leading an aid convoy into Gaza to break the "illegal siege" following the month-long Israeli incursion in January. "I led a convoy of 110 British vehicles, more than 300 British citizens, to break the illegal siege of Gaza just a few days ago. Most people in the world think that feeding people under siege is something to be commended rather than something to get you banned," he told the Star in a telephone interview from his London office. He noted that when news he was being denied entry to visit Canada first appeared in the British press, it was supposedly because he had expressed opposition to the NATO-led Afghan war. Some critics have called the government's decision to bar Galloway an attack on free speech. Galloway was expelled from the Labour Party in 2003 for urging British soldiers not to fight in Iraq. He formed his own party, Respect, and won re-election to the Commons in 2005.
As a novice CIA case officer in the Middle East, Andrew Warren quickly learned the value of sex in recruiting spies. Colleagues say that he made an early habit of taking informants to strip clubs, and that he later began arranging out-of-town visits to brothels for his best recruits. Often Warren would travel with them, according to two colleagues who worked with him for years. His methods earned him promotions and notoriety over a lengthy career, until Warren, 41, became ensnared in a sex scandal. Two Algerian women have accused the Virginia native of drugging and sexually assaulting them, and, in one instance, videotaping the encounter. The episode -- one of three sex-related scandals to shake the CIA this year -- has drawn harsh questions from Congress about whether the agency adequately polices its far-flung workforce or takes sufficient steps to root out corrupt behavior. Former officers say the cases underscore a perennial challenge: guarding against scandal in a workforce -- the size of which is classified but is generally estimated to be 20,000 -- that prides itself on secrecy and deception. "You have an organization of professional liars," said Tyler Drumheller, who oversaw hundreds of officers as chief of the agency's European division. Experienced field managers are needed, he said, because inevitably "some people will try to take advantage of the system . . . and it's a system that can be taken advantage of." The recent string of embarrassing revelations started with the CIA's former No. 3 officer, Kyle "Dusty" Foggo, who was indicted on corruption charges two years ago.
Note: For in-depth analysis of the continuing revelations of a long history of the CIA's use of sex to control people, click here.
Ten years after he was diagnosed HIV-positive, Paul was still alive. This was long before tri-therapy—the remarkably effective treatment that keeps AIDS patients alive—and everyone asked what he was doing to stave off the illness. He replied that he was taking natural supplements, watching his diet carefully and exercising regularly. One day at a press conference, a professor of medicine told him, "I'm sorry to say I've had a lot of patients who were doing the same thing and they all died. Unfortunately, I expect that within a year, or at most two, your disease will have gotten the upper hand." Indeed, Paul died within two years, his hopes struck down by that terrible omen. It takes 24 hours for certain voodoo priests to bring about the death of a person on whom they've cast an "evil spell." The grand priests of modern medicine aren't so quick but can sometimes be as deadly. Cancer seems to develop faster and more aggressively in patients who have less control over the inevitable stress of existence, which seems to be one of the reasons support groups prolong survival. Now what could be more stressful than being told there's no hope of a cure? At the University of California, Los Angeles, Assistant Professor Steve Cole demonstrated that among AIDS patients on tri-therapy, the treatment benefits those who remain calm facing life's difficulties far more than those who have trouble controlling their stress. To guard against this Western-style voodoo, patients often need to know more than their doctors about what they can do to help themselves—beginning by placing more hope in their bodies than medicine is prepared to give them.
Note: For many hopeful reports on health issues from major media sources, click here.
There must be a criminal investigation of the AIG debacle, and it looks as if New York's top lawman is on the case. The collusion to save this toxic company in order to salvage the rogue financiers who conspired to enrich themselves by impoverishing millions is being revealed as the greatest financial scandal in U.S. history. Instead of taking bonuses, the culprits should be taking perp walks. The real culprits are the AIG leaders who, as New York Attorney General Andrew Cuomo revealed Tuesday, signed those bonus contracts a year ago to reward the very people "principally responsible for the firm's meltdown." As Cuomo noted in a letter to Rep. Barney Frank: "The contracts shockingly contain a provision that required most individuals' bonuses to be 100 percent of their 2007 bonuses. Eleven of the individuals who received 'retention' bonuses of $1 million or more are no longer working at AIG, including one who received $4.6 million." But the $165 million in taxpayer funds used to reward them is but a sideshow in a far larger drama of moral decay swirling around the banking bailout. It should not distract from the many billions, not paltry millions, of our dollars being diverted to reward the very folks who brought us such misery. Consider the $12.8 billion of the $170 billion that taxpayers gave AIG in bailout funds that AIG then secretly diverted to Goldman Sachs, a company that evidently has a lock on both the Treasury Department and the Federal Reserve no matter which political party is in power.
Note: For an excellent analysis of "the real AIG conspiracy", click here. For lots more on the hidden realities of the Wall Street bailout, click here.
The Federal Reserve announced Wednesday it will spend up to $300 billion over the next six months to buy long-term government bonds, a new step aimed at lifting the country out of recession by lowering rates on mortgages and other consumer debt. Fed purchases should boost Treasury prices and drive down their rates. That would ripple through and lower rates on other kinds of debt. The last time the Fed set out to influence long-term interest rates was during the 1960s. The Fed also said it will buy more mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help that battered market. The central bank will buy an additional $750 billion, bringing its total purchases of these securities to $1.25 trillion. It also will boost its purchase of Fannie and Freddie debt to $200 billion. Pimco's Bill Gross tells CNBC that the move has expanded the Fed’s balance sheet by perhaps 50 percent, up to $3 trillion. In addition, the Fed said a $1 trillion program to jump-start consumer and small business lending could be expanded to include other financial assets. Across the Atlantic, the Bank of England last week began buying government bonds from financial institutions as it turned to other ways to help revive Britain's moribund economy. The Bank of England, like the Fed, already had lowered its key interest rate to a record low of 0.5 percent. Finance leaders from top economies have discussed coordinating actions from their governments and central banks to provide a more potent punch against the global financial crisis.
Note: The Fed is now buying long-term Treasury bonds because it cannot directly lower interest rates any further. Isn't this just a hidden form of increasing the money supply, with the risk of further devaluing the dollar and eventually causing high inflation? For lots more on the hidden realities of the Wall Street bailout, click here
What quantum mechanics tells us ... is surprising to say the least. It tells us that the basic components of objects – the particles, electrons, quarks etc. – cannot be thought of as "self-existent". The reality that they, and hence all objects, are components of is merely "empirical reality". This reality is something that, while not a purely mind-made construct as radical idealism would have it, can be but the picture our mind forces us to form of [a] mysterious, non-conceptualisable "ultimate reality", not embedded in space and (presumably) not in time either. The quantum mechanical formalism ... compels us to consider that two particles that have once interacted always remain bound in a very strange, hardly understandable way even when they are far apart, the connection being independent of distance. Even though this connection-at-a-distance does not permit us to transmit messages, clearly it is real. In other words space, so essential in classical physics, seems to play a considerably less basic role in quantum physics. [Erwin] Schrödinger had even given [this reality] a name: entanglement, and had claimed entanglement is essential. A real breakthrough took place [when John Bell] published his famous inequalities, which - for the first time - opened a possibility of testing whether or not entanglement-at-a-distance had experimentally testable consequences. Entanglement-at-a-distance does physically exist, in the sense that it has physically verifiable (and verified) consequences. Which proves beyond a shadow of a doubt that some of our most engrained notions about space and causality should be reconsidered.
Note: For lots more intriguing scientific information suggesting reality is much more fluid and miraculous than most might suspect, click here. For a treasure trove of great news articles which will inspire you to make a difference, click here.
Cafe owner Sam Lippert has come up with an innovative way to cope with the recession: He's done away with pricing and simply asks customers to pay what they want. Lippert says sales and customer count has increased markedly since the change, and he's looking at adding more staff. John Roberts: So you run the Java Street Cafe. You actually own the Java Street Cafe there in Kettering, Ohio. And you've got a menu that's got no prices on it. People pay what they think the food is worth. How did you come up with that idea? Sam Lippert: Well, actually, that was thanks to my girlfriend. She is from Bulgaria, and she says it's a common practice in certain cafes in Europe to allow the patrons to decide how much to pay for their meal. Roberts: So, in terms of paying for something, if somebody gets a sandwich or maybe a bowl of soup or something like that, typically how close to the old menu price would they get in what they pay? Lippert: Well, sometimes people shoot a few dollars over, and sometimes it's a few dollars under. And, you know, at the end of the day, it works out for me. ... It works out even. Roberts: Yes, so, does anybody try to game the system? You know, they'll get a big meal that would be worth $10, $12 and then give you 50 cents for it? Lippert: Well, you know, they have to look me in the eye and say that that's what they think is fair. And, you know, that's a big incentive. When someone's at the counter and you say, you get to pay what you think is fair, very few people are going to take advantage of that situation.
Eliot Spitzer must miss his glory days when he was the scourge of Wall Street as New York’s attorney general. With the bonus battle exploding at the American International Group, Mr. Spitzer has jumped into the fray — and dismissed the bonus scandal, arguing that it is obscuring the “real disgrace” at A.I.G. “Why are A.I.G.’s counterparties getting paid back in full, to the tune of tens of billions of taxpayer dollars?” he asks in an article on Slate. Mr. Spitzer notes that A.I.G.’s trading parties were all the big banks including Goldman Sachs, many of which received billions of dollars from the government’s Troubled Asset Relief Program. “So now we know for sure what we already surmised: The A.I.G. bailout has been a way to hide an enormous second round of cash to the same group that had received TARP money already,” he writes. “It all appears, once again, to be the same insiders protecting themselves against sharing the pain and risk of their own bad adventure,” Mr. Spitzer writes. Recounting how the economic crisis is affecting workers, with tax increases, pay cuts and layoffs, Mr. Spitzer asks: “Why can’t Wall Street royalty shoulder some of the burden? Why did Goldman have to get back 100 cents on the dollar? Didn’t we already give Goldman a $25 billion capital infusion, and aren’t they sitting on more than $100 billion in cash? What is the deeper relationship between Goldman and A.I.G.?”
Note: For the article written in 2008 by former NY Governor Spitzer which likely caused him to be targeted for a takedown just weeks later, click here. For lots more on the hidden realities of the Wall Street bailout, click here.
The Federal Reserve has no option but to start buying Treasurys as the government's needs for financing are huge, but the government bond market is a disaster in the making, Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, told CNBC. "Other central banks have done it already around the world but basically what it amounts to is money printing and in fact I don't think that it will help the bond market at all in the long run," Faber told CNBC. "Yields have already backed up pretty substantially and I tell you, I think the US government bond market is a disaster waiting to happen for the simple reason that the requirements of the government to cover its fiscal deficit will be very, very high," Faber said. "The Federal Reserve will have to buy Treasurys, otherwise yields will go up substantially," he said, adding that as their reserves were dwindling, foreign investors were likely to scale down their purchases. But there will be a time when the Federal Reserve will have to increase interest rates to fight inflation, and it will be reluctant to do so because the cost of servicing government debt will rise substantially. "So we'll go into high inflation rates one day," Faber said. The stock market ... outlook is bleak, he added. "I think we may still have a rally ... until about the end of April and probably then a total collapse in the second half of the year sometimes, when it becomes clear that the economy is a total disaster," Faber said.
Note: For lots more on the hidden realities of the Wall Street bailout, click here
The American International Group, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, plans to pay about $165 million in bonuses by Sunday to executives in the same business unit that brought the company to the brink of collapse last year. Treasury Secretary Timothy F. Geithner told the firm they were unacceptable and demanded they be renegotiated, a senior administration official said. But the bonuses will go forward because lawyers said the firm was contractually obligated to pay them. The payments to A.I.G.’s financial products unit are in addition to $121 million in previously scheduled bonuses for the company’s senior executives and 6,400 employees across the sprawling corporation. The payment of so much money at a company at the heart of the financial collapse that sent the broader economy into a tailspin almost certainly will fuel a popular backlash against the government’s efforts to prop up Wall Street. A.I.G., nearly 80 percent of which is now owned by the government, defended its bonuses, arguing that they were promised last year before the crisis and cannot be legally canceled. Of all the financial institutions that have been propped up by taxpayer dollars, none has received more money than A.I.G.. The bonuses will be paid to executives at A.I.G.’s financial products division, the unit that wrote trillions of dollars’ worth of credit-default swaps that protected investors from defaults on bonds backed in many cases by subprime mortgages. Seven executives at the financial products unit were entitled to receive more than $3 million in bonuses.
Note: For many revelations of the amazing realities of the Wall Street bailout, 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.