The Magazine of Corporate Responsibility

Archive for June, 2010

Bank of America to Pay $108 Million to Settle Countrywide Case

The Federal Trade Commission said that when homeowners fell behind on payments and were in default on loans, Countrywide ordered property inspections, lawn mowing, and other services meant to protect the lender’s interest in the property. But rather than hire third-party vendors to perform the services, Countrywide created subsidiaries to hire the vendors, often marking up prices charged by 100 percent or more.

Is Ethanol Better for Environment Than Gasoline?

Ethanol—a biofuel derived from corn and other feedstocks—is already playing a major role in helping to reduce emissions from many of the traditional gasoline-powered cars on the road today. According to the U.S. Department of Energy, nearly half of all the gasoline sold in the U.S. contains up to 10 percent ethanol, which not only boosts octane but also helps meet federally mandated air quality requirements.

Measuring Environmental Impact of Gulf Oil Leak

Oil from 1989’s Exxon Valdez mishap slicked 11,000 square miles of ocean surface and 1,300 miles of pristine Alaskan coastline while killing hundreds of thousands of birds and marine mammals and untold numbers of fish and fish eggs. But the impacts of the ongoing Deepwater Horizon leak in the Gulf may be far worse given that much of the loose oil is actually in the water column, not on the surface.

The Madoff Circle: Who Knew What?

When Bernard Madoff pleaded guilty to running the biggest Ponzi scheme in history, he insisted he was the lone perpetrator. But an investigation by ProPublica finds an alternate narrative is now emerging from the pile of Madoff-related litigation – one in which a small circle of men played knowing, integral roles in the scheme, in some cases benefiting more from it than even Madoff himself.

Diebold to Pay $25 Million to Settle Accounting Fraud Charges

The maker of ATMs, bank security systems and voting machines was charged by the U.S. Securities and Exchange Commission with manipulating earnings over a five-year period, misstating the company’s reported pre-tax earnings by at least $127 million.

Holder Says More Individuals to Face Bribery Charges

Attorney General Eric Holder said the prosecution of individuals “is accelerating” amidst continuing evidence of transnational bribery. “Let me be clear, prosecuting individuals is a cornerstone of our enforcement strategy because, as long as it (bribery) remains a tactic, paying large monetary penalties cannot be viewed by the business community as merely ‘the cost of doing business,’ ” he said.