Trust Digest 89 (March 24, 2015)


Ways to Put the Boss’s Skin in the Game
Life is not fair, I know, but this is getting ridiculous. Whenever a big corporation settles an enforcement matter with prosecutors, penalties levied in the case — and they can be enormous — are usually paid by the company’s shareholders. Yet the people who actually did the deeds or oversaw the operations rarely so much as open their wallets.
Key Words: Compensation, SEC, Stakeholders 
Trust Issues: Corporate Governance, Accountability, Alignment of interests

The Guardian, Financial Times, Reuters, CNN, and The Economist have formed an ad alliance to take on Google and Facebook
The Guardian, CNN International, Financial Times, Reuters and The Economist have banded together to form an advertising alliance they hope will have enough scale to take on the likes of Google, Facebook, Twitter, and LinkedIn. Dubbed Pangaea, the new programmatic advertising network will pool together the publishers' collective audiences so advertisers can buy up advertising space across all of their sites in one transaction. Together, they will offer advertisers access to 110 million readers worldwide.
Key Words: Alliance, Competition
Trust Issues: Partnership, Monopoly

Obama's war on whistleblowers leaves administration insiders unscathed
Since Barack Obama entered the White House in 2009, his government has waged a war against whistleblowers and official leakers. On his watch, there have been eight prosecutions under the 1917 Espionage Act – more than double those under all previous presidents combined.
Key Words: Whistleblowers, Insiders
Trust Issues: Governance, Predictability, Integrity, Accountability

Fannie, Freddie could need another bailout as risks rise -watchdog
U.S. housing finance companies Fannie Mae and Freddie Mac could require more bailouts from U.S. taxpayers as risks are rising due to shrinking reserves, an internal watchdog for the firms' regulator said on Wednesday.
Key Words: Fannie Mae, Freddie Mac, Bailout
Trust Issues: Government Funds, Public Interest

Pentagon loses track of $500 million in weapons, equipment given to Yemen
The Pentagon is unable to account for more than $500 million in U.S. military aid given to Yemen, amid fears that the weaponry, aircraft and equipment is at risk of being seized by Iranian-backed rebels or al-Qaeda, according to U.S. officials.
Key Words: Pentagon, Weapons, Aid
Trust Issues: Accountability, Communication, Destabilization

An epic cheating trial is coming to an end, and it could send teachers to prison for 20 years
An incredibly rare criminal cheating trial in Atlanta is coming to an end, and it could send school teachers to prison for allegedly violating a law originally enacted to go after mobsters. Prosecutors are using Georgia's Racketeer Influenced and Corrupt Organizations (RICO) to accuse former principals, teachers, and administrators of trying to boost their bonuses by conspiring to artificially raise kids' test scores. The dozen educators on trial could go to prison for up to 20 years.
Key Words: Cheating, Teachers, RICO
Trust Issues: Public Education, Alignment of interests

Google threatened to remove websites from its search engine unless they let Google use their content
Over the years, multiple companies including Yelp have complained that Google manipulates its search results to bury competitors and favor its own sites. On Thursday, we found out that some government investigators shared a lot of those concerns back in 2012, and they wanted to sue Google for antitrust over them.
Key Words: Google, FTC, Antitrust
Trust Issues: Free Competition, Relative power

Treasury Department Faults Veterans Affairs in Feud Over Employee
Inside the federal bureaucracy there are 72 inspectors general charged with combating waste, fraud and abuse at their agencies. Now two of them are embroiled in an acrimonious and highly unusual dispute that centers on a senior employee who has worked for both the Department of Veterans Affairs and the Treasury Department.
Key Words: Treasury Department, Veterans Affairs
Trust Issues: Fraud, Alignment of interests

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