THE GUARDIAN UK – The oil giant Shell claimed it had inserted staff into all the main ministries of the Nigerian government, giving it access to politicians’ every move in the oil-rich Niger Delta, according to a leaked US diplomatic cable.

The company’s top executive in Nigeria told US diplomats that Shell had seconded employees to every relevant department and so knew “everything that was being done in those ministries”. She boasted that the Nigerian government had “forgotten” about the extent of Shell’s infiltration and was unaware of how much the company knew about its deliberations.

The cache of secret dispatches from Washington’s embassies in Africa also revealed that the Anglo-Dutch oil firm swapped intelligence with the US, in one case providing US diplomats with the names of Nigerian politicians it suspected of supporting militant activity, and requesting information from the US on whether the militants had acquired anti-aircraft missiles.

Other cables released tonight reveal:

• US diplomats’ fear that Kenya could erupt in violence worse than that experienced after the 2008 election unless rampant government corruption is tackled.

• America asked Uganda to let it know if its army intended to commit war crimes based on US intelligence – but did not try to prevent war crimes taking place.

• Washington’s ambassador to the troubled African state of Eritrea described its president, Isaias Afwerki, as a cruel “unhinged dictator” whose regime was “one bullet away from implosion”.

Click to continue reading this article Shell’s grip on the Nigerian state, at guardian.co.uk.

article by David Smith

photograph by flickr user Abulic Monkey

HUFFINGTON POST– At a Senate Budget Committee hearing in 2009, I asked Fed Chairman Ben Bernanke to tell the American people the names of the financial institutions that received an unprecedented backdoor bailout from the Federal Reserve, how much they received, and the exact terms of this assistance. He refused. A year and a half later, as a result of an amendment that I was able to include in the Wall Street reform bill, we have begun to lift the veil of secrecy at the Fed, and the American people now have this information.

It is unfortunate that it took this long, and it is a shame that the biggest banks in America and Mr. Bernanke fought to keep this secret from the American public every step of the way. But, the details on this bailout are now on the Federal Reserve’s website, and this is a major victory for the American taxpayer and for transparency in government.

Importantly, my amendment also required the Government Accountability Office to conduct a top-to-bottom audit of all of the emergency lending the Fed provided during the financial crisis to be completed on July 21, 2011, which will take a hard look at all of the potential conflicts of interest that took place with respect to this bailout. So, in many respects, details that the Fed was forced to divulge on Wednesday about the $3.3 trillion in emergency loans that until now were totally kept from public scrutiny, marked the beginning, not the end, of lifting the veil of secrecy at the Fed.

After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed’s multi-trillion-dollar bailout of Wall Street and corporate America. As a result of this disclosure, other members of Congress and I will be taking a very extensive look at all aspects of how the Federal Reserve functions and how we can make our financial institutions more responsive to the needs of ordinary Americans and small businesses.

What have we learned so far from the disclosure of more than 21,000 transactions? We have learned that the $700 billion Wall Street bailout signed into law by President George W. Bush turned out to be pocket change compared to the trillions and trillions of dollars in near-zero interest loans and other financial arrangements the Federal Reserve doled out to every major financial institution in this country. Among those are Goldman Sachs, which received nearly $600 billion; Morgan Stanley, which received nearly $2 trillion; Citigroup, which received $1.8 trillion; Bear Stearns, which received nearly $1 trillion, and Merrill Lynch, which received some $1.5 trillion in short term loans from the Fed.

We also learned that the Fed’s multi-trillion bailout was not limited to Wall Street and big banks, but that some of the largest corporations in this country also received a very substantial bailout. Among those are General Electric, McDonald’s, Caterpillar, Harley Davidson, Toyota and Verizon.

Continue reading about the Jaw Dropper at the Federal Reserve.

Copyright © 2010 HuffingtonPost.com, Inc.

photograph by LateNightTaskForce/flickr

McCLATCHY NEWSPAPERS– As Americans continue to lose their homes in record numbers, the Federal Reserve is considering making it much harder for homeowners to stop foreclosures and escape predatory home loans with onerous terms.

The Fed’s proposal to amend a 42-year-old provision of the federal Truth in Lending Act has angered labor, civil rights and consumer advocacy groups along with a slew of foreclosure defense attorneys.

They’re not only asking the Fed to withdraw the proposal, they also want any future changes to the law to be handled by the new Consumer Financial Protection Bureau, which begins its work next year.

In a letter to the Fed’s Board of Governors, dozens of groups that oppose the measure, including the National Consumer Law Center, the NAACP and the Service Employees International Union, say the proposal is bad medicine at the wrong time.

“At the depths of the worst foreclosure crisis since the Great Depression, we are surprised that the Fed has proposed rules that would eviscerate the primary protection homeowners currently have to escape abusive loans and avoid foreclosure: the extended right of rescission.”

Because the public comment period on the Fed’s proposal is still open until Dec. 23, a spokesman declined comment on the matter.

But in a September passage in the Federal Register, the Fed said the proposal was designed to “ensure a clearer and more equitable process for resolving rescission claims raised in court proceedings” and reflects what most courts already require.

Since 1968, the Truth in Lending Act has given homeowners the right to cancel, or rescind illegal loans for up to three years after the transaction was completed if the buyer wasn’t provided with proper disclosures at the time of closing.

Attorneys at AARP have used the rescission clause for decades to protect older homeowners stuck in predatory loans with costly terms. The provision is also helping struggling homeowners to fight a wave of foreclosure cases in which faulty and sometimes-fraudulent disclosures were used.

The violations must be of a material nature to invalidate a loan under the extended-rescission clause. To do so, homeowners — usually those facing financial problems or foreclosure — hire an attorney to scour their mortgage documents for possible violations regarding the actual cost of the loan or payment terms.

If problems are found, a notice of rescission is sent to the creditor, which can either admit to the alleged violation or contest it in court.

Creditors that end up rescinding a loan are then required to cancel their “security interest,” or lien, on the property.

Once that occurs, the homeowner must then pay the outstanding loan balance back to the lender — minus the finance charges, fees and payments already made.

Dropping the lien provides homeowners with a defense against foreclosure and allows them to refinance to pay the outstanding loan amount.

Critics say the proposed change by the Fed would render the rescission clause useless. The Fed proposal would require homeowners who seek a loan rescission through the courts, to pay off the entire loan balance before the lender cancels the lien.

Continue reading about the Fed Wanting to Strip Key Protection for Homeowners.

Letter to Federal Reserve opposing the rescission proposal

Federal Register notice explaining its proposed changes on rescission (begins on pg. 58541)

To submit a comment to the Federal Reserve

Article by Tom Pugh of McClatchy Newspapers

Painting by Mike Licht/flickr

FIREDOGLAKE–  According to revised statistics, the US economy grew at a faster rate than first expected, up to 2.5%. Earlier growth in Q3 2010 was estimated at 2%. But the entire problem with looking at this topline number is reflected in these three paragraphs:

But the most recent increase in GDP still isn’t strong enough to make a dent in the country’s high unemployment rate, stuck at 9.6% in recent months. Analysts say GDP growth of at least 3% is needed to bring down the jobless figure, but many don’t expect the economy to perform that well in the fourth quarter or early next year.

The Federal Reserve’s latest economic outlook, to be released later Tuesday, is likely to reflect concerns among policymakers that unemployment will remain very high in the U.S. for the foreseeable future.

American corporations, on the other hand, have rebounded robustly from the recession. Tuesday’s report showed corporate profits jumped 28% in the third quarter from a year earlier, to an annualized total of $1.66 trillion. That’s a record high and reflects deep cost-cutting in the past and increases in demand for goods and services.

That’s right. Despite record unemployment, and no hope for reductions cleaa rerly in sight, corporations have experienced all-time record profits, the highest since the Commerce Department started tracking the figure 60 years ago. They’ve learned to produce as many or more goods without workers.

This is something of a dream for corporate America – bigger profits without those meddling workers to pay. This is the seventh straight quarter of corporate profit growth, with none of those benefits being shared with the working class. “Uncertainty” is blamed for the lack of job growth, but corporations are sitting on giant mounds of cash while they bask in the glow of their strategy to increase their profit margins by cost-cutting.

The other part of this is that multinational corporations are reaping profits from increased consumer spending in China and India. Their markets there have expanded greatly in the past few years.

In the other side of the funhouse mirror, American workers continue to have little hope for returning to the job. They are anxious about their future prospects, and while they continue to spend on necessities, they have trouble with the more substantive payments. Foreclosures and defaults continue unabated, and home sales have dropped, which will probably lead to lower home prices.

But capitalism is working, and the great malefactors of wealth are happy. Happy Thanksgiving.

article by David Dayen of Firedoglake.com

photograph by Refracted Moments/flickr

© 2010 Firedoglake.com

GIZMODO– Hours before their special news conference today, the cat is out of the bag: NASA has discovered a completely new life form that doesn’t share the biological building blocks of anything currently living in planet Earth. This changes everything.

At their conference today, NASA scientist Felisa Wolfe Simon will announce that they have found a bacteria whose DNA is completely alien to what we know today. Instead of using phosphorus, the bacteria uses arsenic. All life on Earth is made of six components: carbon, hydrogen, nitrogen, oxygen, phosphorus and sulfur. Every being, from the smallest amoeba to the largest whale, share the same life stream. Our DNA blocks are all the same.

But not this one. This one is completely different. Discovered in the poisonous Mono Lake, California, this bacteria is made of arsenic, something that was thought to be completely impossible. While she and other scientists theorized that this could be possible, this is the first discovery. The implications of this discovery are enormous to our understanding of life itself and the possibility of finding beings in other planets that don’t have to be like planet Earth.

No details have been disclosed about the origin or nature of this new life form. We will know more today at 2pm EST but, while this life hasn’t been found in another planet, this discovery does indeed change everything we know about biology. I don’t know about you but I’ve not been so excited about a bacteria since my STD tests came back clean. And that’s without counting yesterday’s announcement on the discovery of a massive number of red dwarf stars, which may harbor a trillion Earths, dramatically increasing our chances of finding extraterrestrial life.

Continue reading about NASA Finds New Life in Mono Lake.

© Gizmodo, 2010

Photograph by flickr user satosphere