Where is the Money Going?

JPMorgan Chase’s Madoff Penalty…No Bankers Charged (As Usual)

For that, JPMorgan Chase received a deferred prosecution agreement from Preet Bharara, the United States attorney in Manhattan. It will pay a $2.6 billion penalty. Dennis Kelleher of Better Markets said, "once again, not a single individual working for JPMorgan Chase has been held accountable. Banks do not commit crimes; bankers do." read more

$1.6 Billion Toyota Sudden Acceleration Class Action Settlement Tried to Blame Drivers

As part of the $1.6 billion settlement Toyota initially reached with members of the class action lawsuit, more than $100 million in unclaimed funds was going to help a research and education fund focused on driver error. Clarence Ditlow of The Center for Auto Safety objected to this provision, saying it would strengthen Toyota’s original contention that drivers were to blame for the accidents, not the cars’ electronic control systems. read more

U.S. Companies Dominate Global Deal-Making

Some the highlights from 2013 included the $23 billion deal between H. J. Heinz and 3G Capital, and Berkshire Hathaway/General Electric selling the remainder of NBCUniversal to Comcast for $16.7 billion. Some of Wall Street’s biggest banks helped advise these deals, earning them billion- dollar paydays. Goldman Sachs made $1.5 billion and JPMorgan Chase $1.3 billion in fees for their advisory work on 395 and 295 deals respectively. read more

How Much do F-35s Cost? Beware of Answers from Lockheed-Martin

Lockheed Martin, manufacturer of the F-35, claims the country is really getting a bargain by purchasing the plane for the Air Force, Navy and Marine Corps. Overall, the per-plane cost will be only $85 million by 2019, the company argues. An assessment by TIME magazine showed the average F-35 will cost nearly $220 million. Another review, by the Project on Government Oversight, an independent watchdog organization, found that the “cheapest” F-35 will be $181 million. read more

Americans Overwhelmingly Want GMO Labeling…Until Big Companies Pour Money into Election Campaigns

Proponents thought California voters would approve a 2012 ballot initiative mandating GMO labeling. Six weeks before Election Day, polls showed pro-labelers outnumbering anti-labelers 67% to 22%. But the proposition’s strong level of popular support eroded by Election Day, a victim of a $46 million opposition campaign funded by the likes of DuPont, Monsanto, Coca-Cola, PepsiCo, Kraft Foods and others. Backers of the initiative were only able to raise $9 million. read more

Amish Solution to Fracking Boom…Cash Out and Leave

Life in this part of the state has already become dangerous for the Amish, who travel about in horse-drawn buggies, several of which have been involved in deadly accidents with the growing number of oil trucks. At least three dozen Amish families have reportedly sold their royalty rights or their lands altogether and now plan to move to Pennsylvania or New York. read more

Wells Fargo Main Investor in Nation’s Worst Private College Company

The operator of nearly 100 private colleges has more than 200 lawsuits pending against it, including a case brought by California’s attorney general claiming fraudulent marketing practices aimed at recruiting students. Wells Fargo is by far the biggest shareholder in the company, with 11.6 million shares. Corinthian’s second and third largest investors are the investment management firm BlackRock Fund Advisors (4.5 million) and investment adviser Royce & Associates (4 million). read more

Is Drug Testing Welfare Applicants a Waste of Money?

Missouri, which started drug testing for welfare applicants this year, spent almost $500,000 over eight months to conduct 636 drug tests that identified only 20 people who tested positive out of 32,000 people who applied for assistance, a rate of 0.0625%. Nevertheless, the state of Kansas plans to spend nearly $1 million to implement a program next year. They might want to ask their neighbors in Missouri about that. read more

FBI Investigates how Taxpayers Ended up Paying for Baseball Stadium They Voted Against

To cover this expenditure, the town council led, by St. Lawrence, proposed that Ramapo commit to $16.5 million in long-term bonds. This arrangement, though, required voter approval. When the matter appeared on the local ballot, more than 70% of residents rejected it. But St. Lawrence was determined to get his stadium. So he convinced council members to invest in short-term bonds totaling $25 million—a move that didn’t require voters’ support. read more

Utah and Detroit Experiment with Giving Free Housing to the Homeless

Utah’s endeavor began eight years ago under then-Governor Jon Huntsman, a Republican. Housing First provides free apartments and full-time caseworkers for the homeless, with the expectation that putting a roof over someone will keep them healthier and less in need of ER visits. The program started with 17 homeless people, and eventually grew to include 2,000. Although the initiative cost money to pay for the apartments, the state calculated it would still come out ahead. read more

Obama Administration Underestimated Cost of Maintaining Nuclear Weapons by $140 Billion

The $355 billion includes $136 billion to modernize and operate submarines, bombers and missiles that deliver warheads, $105 billion to run weapons labs, weapons and naval reactors, $56 billion for command and control systems, and $59 billion for unforeseen technical problems or mismanagement. CBO officials point out there are other, very costly programs that exist because of the nuclear weapons program, such as cleaning up shuttered nuclear fuel facilities. read more

Climate Change Denial Gets Billions in Dark Money from Conservative Groups

Of the 25% in funding that the study was able to identify, the leading contributor was the Donors Trust and Donors Capital Fund. Other prominent supporters of the climate denial movement have included Exxon Mobil, the Searle Freedom Trust, the John William Pope Foundation, the Howard Charitable Foundation and the Sarah Scaife Foundation. read more

Arizona County has Spent more than $25 Million Defending Sheriff Joe Arpaio

Arpaio and County Attorney Andrew Thomas said at the time that they were out to clean up local politics. But those targeted in the investigations claimed Arpaio was getting back at them for opposing his policies. A former supervisor, Don Stapley, received $3.5 million to end his case against the county. Another settlement worth $3.75 million went to Phoenix New Times founders Michael Lacey and Jim Larkin, who were targeted by Arpaio. read more

IRS Contractors Owe $589 Million in Back Taxes

Although 1,168 Internal Revenue Service (IRS) contractors owe a combined $589 million in back taxes, the agency paid them about $741 million between October 2010 and June 2012, and continues to resist a key reform proposed two years ago, according to a report by the Treasury Inspector General for Tax Administration (TIGTA). read more

Labor Dept. Courts for Workers…More Cases, Fewer Judges

The federal government’s court system for labor-related grievances is suffering from a shortage of judges and a growing abundance of cases. Ten years ago, the Office of Administrative Law Judges (OALJ) employed 53 judges. Today, that total has fallen to just 35 (and one part-time judge). Meanwhile, the department’s new cases have soared by 68% in the past five years. Pending cases have experienced an even bigger growth: 134%. read more

Drug Firms’ Payments to Prescription “Charities” Raise Questions

If someone faces a $5,000 out-of-pocket expense for a $100,000-a-year drug, a charity steps in (with pharma money) to cover it. This results in the company making $95,000 from either the person’s insurer or Medicare. The drug maker also wins because the contributions to charity are tax deductible. read more