Corporate Crackdown: Latest Blog Posts

Will taxpayers be on the hook for corporate misconduct?

Fri, 05 Mar 2010 15:42:24 -0500

Another plant closing, another distressed pension plan abandoned by the private sector. As the Detroit Free Press recently reported, Toyota is shuttering a former joint-venture plant with GM in Fremont, Calif., leaving behind $131 million in unfunded pension liabilities and 5,800 United Auto Workers in the lurch.

Financial firms spending big sums on lobbying

mjacob — Wed, 03 Mar 2010 09:18:26 -0500

As this Politico article explains, the issues of financial regulation and health care reform have fueled spending on lobbyists to work the halls of Congress. Efforts to strengthen oversight of financial institutions are an example of what's driving this:

[JPMorgan Chase] spent more than $5 million lobbying Congress last year and has already doled out nearly a half-million dollars in campaign donations to curry favor with lawmakers from both parties.

read more

A stronger, global push to fight corporate corruption

mjacob — Mon, 01 Mar 2010 14:17:05 -0500

In a global economy, corruption also becomes global. And a lot of that corruption occurs when corporations offer bribes or kickbacks to government officials or other influential people in countries where they're trying to sell their products or services. But according to the magazine Business Ethics, the Obama administration is devoting more resources to fighting this corruption:

Tax report: wealthiest Americans' share of national income has tripled

mjacob — Fri, 19 Feb 2010 11:13:10 -0500

Data from an annual report by the IRS provides some interesting revelations about America's top 400 income-earners -- many of whom occupy seats in corporate office suites. To make the top 400, a taxpayer had to have an annual income of more than $138.8 million. In this blog post, Robert Borosage of the Campaign for America's Future offers his take:

Corporations Get a Primer on How to (Invisibly) Influence Elections

mjacob — Thu, 18 Feb 2010 09:26:36 -0500

A month ago, the Supreme Court's decision in the Citizens United case opened the door for corporations to dramatically increase their influence in elections. Now, according to TPMMuckraker's Zachary Roth, corporate officials are getting a primer on how to do so while staying below the radar screen:

An Innocent-Looking TV Ad With a Hidden Agenda

mjacob — Thu, 11 Feb 2010 13:54:17 -0500

It’s hard to be surprised about anything that is done by Richard Berman, the over-the-top P.R. maven who has attacked the minimum wage, Mothers Against Drunk Driving, and various consumer health campaigns. But Americans who care about transparency and economic fairness should be concerned about the innocent-looking, national advertising blitz that one of Berman's industry-funded front groups is carrying out.

Disturbing Decisions, Yet Robust Rewards for CEO

mjacob — Tue, 09 Feb 2010 12:37:06 -0500

When he was chief executive of Merrill Lynch, John Thain paid out $3.6 billion in bonuses to Merrill employees just before the investment bank was sold to Bank of America. Thain also spent more than $1 million to redecorate his office at Merrill — a redecoration that took place even as the company was sliding deeper into a financial hole.

Is Agency’s Tight Relationship With Automakers Bad for Consumer Safety?

mjacob — Fri, 05 Feb 2010 10:46:48 -0500

The widespread complaints about Toyota’s sticky accelerators are prompting criticism that federal regulators may be relying too heavily on automakers’ explanations and assurances. Much of this criticism is aimed at the National Highway Traffic Safety Administration (NHTSA).

According to the Washington Post:

An Odd CEO to Speak at a Forum About Labor Relations

mjacob — Tue, 02 Feb 2010 09:04:08 -0500

Rep. John Kline (R-MN) organized an issue forum in January that criticized President Obama for being too supportive of labor unions. The forum was advertised as an event exploring the impact that the administration’s policies are having “on the current labor market and the rights of employees …” But one of the experts invited to speak at this forum was an odd choice.

Corporation Runs for Congressional Seat in MD

mjacob — Mon, 01 Feb 2010 08:58:40 -0500

Well, not exactly. A public relations firm in Maryland is dramatizing its concern over the Supreme Court’s recent decision on campaign finance by running for Congress.

Tax-Software Lobby Stifles Calif.’s Ability to Save Taxpayers Time and Money

mjacob — Wed, 27 Jan 2010 08:46:55 -0500

In this New York Times article, Randall Stross points out that many industrialized nations offer their taxpayers a return that contains all of the data collected by that nation’s tax authority. But the U.S. does not. Stross writes:

It’s a stunningly reasonable idea. When you prepare your return, why can’t you first download whatever data the Internal Revenue Service has received about you and, if your return is simple, learn what the I.R.S.’s calculation of your taxes would be?

No Surprise Why Mountain Top Mining Continues

mjacob — Tue, 12 Jan 2010 12:58:52 -0500

Last week, a group of scientists warned that Mountain Top Mining (MTM) in parts of Kentucky, Virginia and West Virginia is having a “pervasive and irreversible” effect on the environment and urged a ban on the practice. And last month, the Government Accountability Office (GAO) issued a report highlighting the environmental damage of MTM. And, in more ways than one, it isn’t pretty.

Concerns about corporate tax dodging

mjacob — Mon, 04 Jan 2010 14:22:02 -0500

Governments around the globe are reviewing corporate tax returns much more closely these days. At a time when public budgets are tighter than ever, the New York Times reports that government officials worry that multinationals may be gaming the system:

Remembering Bhopal

pbjork — Thu, 17 Dec 2009 16:56:40 -0500

At CorporateCrackdown.org, we expose the unethical business practices of corporations that sacrifice the public good for private earnings – so we would be remiss in neglecting to remember the 25th anniversary this month of one of the most notorious and deadly examples of corporate malfeasance in history – the Bhopal Disaster.

More Corporations Get the H1N1 Vaccine Before High Risk Populations

mcrawford — Tue, 08 Dec 2009 13:52:34 -0500

We told you how Wall Street millionaires got the H1N1 vaccine before pregnant women and children, but USA Today reports it’s worse than we thought.

When swine flu vaccine was most scarce, local health officials gave thousands of doses to corporate clinics at Walt Disney World, Toyota, defense contractors, oil companies and cruise lines, according to a USA TODAY review of vaccine distribution data from three states.

Comcast-NBC Deal Highlights the Lobbying Revolving Door

mcrawford — Tue, 08 Dec 2009 09:25:49 -0500

Last week Comcast and NBC universal agreed to a $30-billion transaction that would give the cable company a controlling stake in the TV and entertainment company. Now the heavy lifting in Washington begins:

Comcast Chief Executive Officer Brian Roberts is likely to testify before Congress as the deal undergoes scrutiny in Washington [. . . The deal] is to be vetted by the Federal Communications Commission and either the Justice Department or the Federal Trade Commission.

Ex-Bush Staffers Still Influencing Debate on Climate Change

mcrawford — Mon, 07 Dec 2009 11:23:37 -0500

World leaders, scientists and activists have gathered in Copenhagen this week to discuss global efforts to address the challenges posed by climate change. Hopes are high that these decision-makers will leave the conference with concrete ideas that will encourage substantive debate back in their respective countries.

A Mountain of Money

mcrawford — Tue, 01 Dec 2009 13:01:59 -0500

Click on this blog post from the Center for Responsive Politics and scroll down to find a list of the money that the top 20 securities and investment firms have given to leadership PACs and candidate committees since 1989.

As you’ll see, Goldman Sachs, Citigroup, Bear Stearns and lots of other big-name firms have given huge amounts of money to lawmakers over this 20-year period.

Are the Toys You’re Buying Naughty or Nice?

mcrawford — Mon, 30 Nov 2009 11:28:23 -0500

Think twice before buying an Elmo lunch bag made by Fast Forward New York for any kids on your holiday shopping list. In an independent investigation it was found to contain 7.2 percent of a banned family of chemicals known as phthalates.

Why You Should Check Under the Hood of GM’s 60-Day Return Policy

mcrawford — Tue, 24 Nov 2009 10:20:24 -0500

On the surface, GM’s special 60-day return policy on its cars seems a good deal. Check under the hood and you’ll notice a few unexpected “ifs” and “buts.” According to Public Citizen’s Citizen Vox :

Why It Pays to Follow the Money

mcrawford — Mon, 23 Nov 2009 09:03:53 -0500

Huffington Post, using data from Opensecrets.org, does a great job of pulling back the congressional curtain to reveal the potential role campaign contributions are playing in efforts to reform the financial industry.

Report Faults New York Fed

mcrawford — Fri, 20 Nov 2009 16:10:15 -0500

According to The New York Times, a new report from the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) shows that the Federal Reserve Bank of New York failed to use all of its leverage when dealing with fallout from the near collapse of AIG in 2008.

As a result, AIG’s trading partners, like Goldman Sachs, were made whole with $85 billion in taxpayer cash, while individuals and businesses continued to take a financial pounding in the devastated financial markets.

Is Senator Baucus’s Web of Influence a Roadblock?

mcrawford — Mon, 16 Nov 2009 09:58:33 -0500

Senator Max Baucus has deep connections with health care lobbyists. As a central figure in Democratic attempts to overhaul the industry, these ties have been a source of concern for health care reform advocates.

Credit Card Companies Dash for the Cash

mcrawford — Fri, 13 Nov 2009 15:16:31 -0500

The New York Times reports again this week on credit card companies trying to squeeze a few more pennies out of their customers before tough new regulations take effect. The latest story spotlights a 91-year-old who saw her credit card rates jump 10% out of the blue. Recent studies show this anecdote is part of a larger trend. In fact, 12 of the country’s largest banks are continuing to engage in “unfair or deceptive” credit practices.

Are Flu Shots Like Bonuses Now? Really?

mcrawford — Fri, 13 Nov 2009 14:41:25 -0500

The blowback from reports that the Center for Disease Control prioritized H1N1 vaccinations for Goldman Sachs ahead of schools and hospitals continues. Last weekend, Saturday Night Live took on Wall Street over the scandal. We couldn’t have said it better ourselves…

Watch the SNL video.

After Receiving Billions in Bailout Funds, Citigroup Will Limit Lending to the Wealthy

mcrawford — Thu, 24 Sep 2009 17:06:35 -0400

You would think that after receiving billions of dollars in taxpayer bailout funds banks would be show the American people its appreciation. But, if you’re thinking Citigroup, you’d be wrong.

Huffington Post has the scoop:

Citigroup, which has received $45 billion in TARP funds -- in addition to billions in government asset guarantees -- has come up with a brash tax-payer funded restructuring plan: cut U.S. locations and limit most lending to only the wealthy.

The Dell-Perot Merger and the Federal Government

Thu, 24 Sep 2009 10:39:42 -0400

Federal Computer Week reports the merger between Dell, Inc. and Perot Systems might have something to do with government contracting. Dell already raked in $1.2 billion in federal sales in fiscal year 2008 and apparently Perot Systems has an even “larger presence” in Washington. Ross Perot, Jr., chairman of Perot Systems, wasn’t shy about calling the federal government a “big, big target.”

Let’s just hope the government doesn’t overpay for useless next day service plans.

An End to the Credit Card Debt Cycle for College Kids?

Thu, 24 Sep 2009 10:10:33 -0400

Despite taking over $7.7 million in campaign cash from credit companies over the last few years, Congress was able to pass tough new regulations on the industry in May. That legislative package included new regulations on giving credit cards to college kids – a group that has been identified as vulnerable to identity scams due to their credit card use and is likely to rack up interest charges and other fees due to their generally bad financial habits.

Dell to Pay $4 Million for Defrauding NY

Wed, 23 Sep 2009 09:35:37 -0400

Over the past few weeks, CREW has warned the public of Dell’s deceptive business practices, in particular, its refusal to honor its “Next Day Service” warranties.

Last week, New York Attorney General Andrew Cuomo scored a major victory for customers who have been defrauded by Dell. The company has agreed to pay $4 million in restitution.

In a news release about the settlement , Attorney General Cuomo said:

Today’s announcement is the final step in ensuring New Yorkers harmed by Dell’s deceptive and illegal business practices are fully compensated,” said Attorney General Cuomo. “Going forward, this deal means that Dell will have to clearly and fully disclose the terms and conditions of their products and services, to avoid this kind of fraud at the consumer’s expense. My office is committed to ensuring a fair and honest marketplace across New York by rooting out these unlawful practices, and we encourage anyone who was ripped off by Dell to come forward and file a claim to get their money back.

Dell's "Next Day" Service Warranties - More Like Next Week? Next Year?

pbjork — Tue, 30 Jun 2009 11:24:22 -0400

Submitted by Liz Hancock

According to its website, “Dell puts you back to work fast.” Many customers discovered that’s not exactly true when their Next Day Service warranties, which had guaranteed a “Next Business Day On-site Response Service,” failed to deliver not only the next day but sometimes weeks or even a year after the supposed next day.