Up with Chris Hayes returned after a two week hiatus for NBC’s coverage of the 2012 Olympics and just in time for a major political announcement by the presumptive Republican presidential nominee. It was leaked late last night and all over Twitter in seconds that former Massachusetts Governor Mitt Romney has selected Rep. Paul Ryan, (R-WI) for his running mate. So it isn’t at all surprising that this was the topic that dominated the discussion. Two segments that I felt were most important examined Rep. Ryan’s stance on Medicare and it impacts on the Romney campaign. In the second segment Chris and his guests reviewed Ryan’s voting record and the impact on tackling the deficit. Joining Chris on the panel were Rachel Maddow, host of MSNBC’s Rachel Maddow Show; Avid Roy, health care policy adviser to Gov. Romney; Melissa Harris Perry, host of MSNBC’s Melissa Harris Perry Show and Ezra Klein, political analyst for the Washington Post; and John Nichols, contributing editor at The Nation.

Welcome to the Stars Hollow Health and Fitness News weekly diary. It will publish on Saturday afternoon and be open for discussion about health related issues including diet, exercise, health and health care issues, as well as, tips on what you can do when there is a medical emergency. Also an opportunity to share and exchange your favorite healthy recipes.

Questions are encouraged and I will answer to the best of my ability. If I can’t, I will try to steer you in the right direction. Naturally, I cannot give individual medical advice for personal health issues. I can give you information about medical conditions and the current treatments available.

You can now find past Health and Fitness News diaries here and on the right hand side of the Front Page.

Follow us on Twitter @StarsHollowGzt

Last month I had a reunion in Provence with friends who discovered this magical region of France with me more than 30 years ago. It was a true southern French vacation – we relaxed, we went to the market, we cooked. Market stalls were piled high with summer squash, tomatoes and eggplant, green beans – both regular ones and the flat ones that we call romano beans and that my Provençal market labeled cocos – onions of all kinds, braids of plump pink garlic, and leeks. [..]

When you’re summering in Provence, it’s easy to put vegetables seasoned with the thyme, rosemary and savory that grows everywhere at the center of your plate every day. But it’s also easy to do that here.

~Martha Rose Shulman~

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

August 11 is the 223rd day of the year (224th in leap years) in the Gregorian calendar. There are 142 days remaining until the end of the year.

On this day in 1934, the first Federal prisoners arrived at Alcatraz.

A group of federal prisoners classified as “most dangerous” arrives at Alcatraz Island, a 22-acre rocky outcrop situated 1.5 miles offshore in San Francisco Bay. The convicts–the first civilian prisoners to be housed in the new high-security penitentiary–joined a few dozen military prisoners left over from the island’s days as a U.S. military prison.

Alcatraz was an uninhabited seabird haven when it was explored by Spanish Lieutenant Juan Manuel de Ayala in 1775. He named it Isla de los Alcatraces, or “Island of the Pelicans.” Fortified by the Spanish, Alcatraz was sold to the United States in 1849. In 1854, it had the distinction of housing the first lighthouse on the coast of California. Beginning in 1859, a U.S. Army detachment was garrisoned there, and from 1868 Alcatraz was used to house military criminals. In addition to recalcitrant U.S. soldiers, prisoners included rebellious Indian scouts, American soldiers fighting in the Philippines who had deserted to the Filipino cause, and Chinese civilians who resisted the U.S. Army during the Boxer Rebellion. In 1907, Alcatraz was designated the Pacific Branch of the United States Military Prison.

In 1934, Alcatraz was fortified into a high-security federal penitentiary designed to hold the most dangerous prisoners in the U.S. penal system, especially those with a penchant for escape attempts. The first shipment of civilian prisoners arrived on August 11, 1934. Later that month, more shiploads arrived, featuring, among other convicts, infamous mobster Al Capone. In September, George “Machine Gun” Kelly, another luminary of organized crime, landed on Alcatraz.

By decision of Attorney General Robert F. Kennedy, the penitentiary was closed on March 21, 1963. It was closed because it was far more expensive to operate than other prisons (nearly $10 per prisoner per day, as opposed to $3 per prisoner per day at Atlanta), half a century of salt water saturation  had severely eroded the buildings, and the bay was being badly polluted by the sewage from the approximately 250 inmates and 60 Bureau of Prisons families on the island. The United States Penitentiary in Marion, Illinois, a traditional land-bound prison, opened that same year to serve as a replacement for Alcatraz.

The entire Alcatraz Island was listed on the National Register of Historic Places in 1976, and was further declared a National Historic Landmark in 1986. In 1993, the National Park Service published a plan entitled Alcatraz Development Concept and Environmental Assessment.  This plan, approved in 1980, doubled the amount of Alcatraz accessible to the public to enable visitors to enjoy its scenery and bird, marine, and animal life, such as the California slender salamander.

Today American Indian groups such as the International Indian Treaty Council hold ceremonies on the island, most notably, their “Sunrise Gatherings” every Columbus and Thanksgiving Day.

The recent shooting in the Sikh temple in Wisconsin that left six dead, the burning of a Mosque in Joplin, MO and the smearing of Huma Adedin, longtime aide to Secretary of State Hillary Clinton were all fueled by the Islamaphobia of crazed white supremacists and fear mongering from our elected representatives and high profile government officials with outrageous imaginary claims of links to terrorists. It is the job of those of us on the Internet and in the traditional MSM to denounce the hate and help right the wrongs that we can. This is how it’s done:

Glenn Greenwald: Combating Islamophobic violence

Helping a burned-to-the-ground Missouri mosque quickly re-build would make a powerful and constructive statement

Shortly after the Islamic Society of Joplin opened a mosque in 2007 in Joplin, a small town in Southwest Missouri, the sign in front was set on fire, an act determined to be arson. On the 4th of July of this year, someone who is undoubtedly a deeply patriotic person was filmed by a surveillance camera throwing a flaming object onto the roof of the mosque in an attempt to burn it down, causing some fire damage (see the video below); despite a $15,000 reward offered by the FBI for information leading to the arrest of those responsible and a clear shot of the attacker’s face, nobody has come forward to identify him.

On Monday of this week – the day after the Sikh temple shooting in Wisconsin – that same Joplin mosque burned to the ground, completely destroyed by a fire that began in the middle of the night. So powerful was the fire that “only remnants indicated a building had been there, including some stone pillars that were still standing and a few pieces of charred plywood loosely held up by a frame.” Although the cause has not yet been determined, investigators – for obvious reasons – have labeled the fire “suspicious” and are searching for signs of arson. As obviously ugly as these incidents are, they offer an opportunity to make an important statement.

In response to these events, a teenaged member of that mosque, Joplin high school student Laela Zaidi, began using social media such as Reddit to talk about what happened and to discuss the importance of the mosque to her community (it’s not only the town’s only mosque, but the only one within a 50-mile radius, leaving Joplin’s Muslim families with no place to gather for Ramadan); the results of Zaidi’s online efforts (including her defense of her community) are surprisingly moving. In Salon on Monday, Joplin native Susan Campbell described the abundant humanitarianism in the town when it was devastated by a horrendous tornado last year, and called upon residents to tap into those same sentiments now by turning the July 4 attacker into authorities. Local-area churches and synagogues have quickly united in a show of support for the mosque.

Most significantly, a little-publicized online campaign to raise the $250,000 needed to rebuild the mosque has produced extremely quick and impressive results. Yesterday, when Al Jazeera’s The Stream wrote about the then-hours-old campaign, it had already raised 1/5 of the money needed ($51,000). When the campaign was first brought to my attention last night and I tweeted a link to it, it had already raised $75,000. As of this morning, barely 24 hours after the campaign began, just over half of the money needed ($126,000) has been raised. Having this Southwest Missouri mosque be able to quickly raise the money needed to re-build – all from small donations of people on the Internet disgusted by these attacks – would be a powerful statement indeed, and I really encourage everyone who can do so to donate.

As of today (Friday), over $262,000 has been raised, exceeding the goal for rebuilding the Mosque. Don’t stop. Donate here

In Glenn’s article, he points out the ugly trend of hate crimes directed at the Muslim community that have reached epidemic levels and the complicity of some of our elected officials and the mainstream media:

This happens because overt expression of Islamophobia is, far and away, the most accepted form of bigotry in mainstream American precincts. Now and then, certain expressions of it are so extreme as to embarrass mainstream circles – Peter King’s Congressional investigation into The Enemy Within or the Michele Bachmann attacks on Hillary Clinton’s Muslim aide – and are thus roundly condemend, but more often than not, they are perfectly acceptable.

The Washington Post‘s Dana Milbank today suddenly realized that Andrew McCarthy – the former federal prosecutor and oft-quoted “legal expert” now writing obsessive anti-Muslim screeds for National Review – is a hatemongering crackpot with exactly the right last name. The NYPD is exposed for indiscriminately targeting innocent Muslims with mass surveillance and infiltration in their communities, and almost every mainstream state and city politician – led by Democratic Sen. Chuck Schumer and the Democratic mayoral front-runner Christine Quinn – cheers. When demands were made that an Islamic community center be moved away from Ground Zero in Manhattan – as though Muslims generally were to blame for the 9/11 attack – even some prominent liberal politicians supported that demand.

And a hearty thanks to Stephen Colbert for taking them to the woodshed with his humor:

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Follow us on Twitter @StarsHollowGzt

Christian Neumeister: It’s Just Business: How Corporate America Made Slaves of the Young

Companies across the nation are gleefully denying interns fair wages for their work, in flagrant violation of long-standing labor law, and have the nerve to tell the world they are doing these people a favor.

Huge numbers of college students and recent graduates in a tight labor market are too scared to ask for compensation. Consequently, many interns must work for years in unpaid positions to build their résumés while depending on their parents for financial support. Not only do unpaid internships stop some from paying down a collectively exploding student debt, they compound the economical class differences between those who can afford to work for free and those who can’t.

This exploitative practice has evolved over the generations since the passage of the Fair Labor Standards Act in 1938 and a 1947 Supreme Court ruling about railroad trainees that officially defined unpaid internships; that ruling was mostly ignored by businesses, and today’s systemic abuse of interns eventually developed.

Mark Weisbot: UN Should Get Rid of Cholera Epidemic That It Brought to Haiti

Haitians have had a long and arduous struggle just to achieve the rights that most people in the rest of the hemisphere have enjoyed. From the revolution of Haitian slaves that won independence from the French in 1804, through the U.S. occupation (1915-1934), the Duvalier family dictatorship (1957-1986), and the last 20 years of devastating foreign intervention, the “international community” just hasn’t seen Haitians as having the same basic human rights as people in other countries. [..]

This is perhaps most clear in the failure of the United Nations to take responsibility for the additional devastation they have brought to Haiti with the deadly disease of cholera. Since the outbreak began in October 2010, more than 7,445 Haitians have died of the disease and more than 580,000 have been infected, and these official numbers are an underestimate. It is now firmly established, by a number of scientific studies, that UN troops brought cholera to Haiti by dumping their human waste into the country’s water supply. [..]

No wonder more than 70 percent of Haitians responding to a recent poll said they wanted MINUSTAH to leave within a year.  The UN can use the money currently wasted on this military force to rid the country of cholera.  Then, at least, they will have cleaned up one of their biggest crimes in the country.

Yves Smith at naked capitalism and Marcy Wheeler at emptywheel have been following the latest banking scandal with a certain amount of “glee” as New York Superintendent of Financial Services, Benjamin Lawsky, Federal regulators (mainly Treasury and the Federal Reserve) and Mr. Lawsky’s target, the British bank, Standard Charter, all do the “Rule of Law” waltz in the media.

The “dance” so far has resulted in a flurry of furious responses to Mr. Lawsky’s charges that the Standard Charter Bank (SCB) laundered billions of dollars for Iran hiding the transaction from federal investigators for 10 years.

These are the latest developments over the last few days since the story broke:

First from Yves where she confesses her enjoyment of the “dust up” and the latest counter by SCB to sue Mr. Lawsky:

The lead story in the Financial Times on SCB is so obviously barmy that I’m astonished that the pink paper would give it prominent play. The headline: StanChart seeks advice over countersuit. Even floating this as an course of action reeks either of desperation to create positive news hooks or delusion:

   The bank’s legal advisers believe “there is a case” for claiming reputational damage, according to two people close to the situation, although StanChart is conscious of the delicacy of taking an aggressive stance towards its regulators.

The whole “delicacy” part is code for this having odds of close to zero of happening, so this looks like yet more spin.

The damage was done by the threat to yank the license and access to dollar clearing services, not the “rogue institution” label in the order. And as we’ve written in earlier posts, despite the spinmeister’s efforts to contend otherwise, Lawsky has cited violations of New York law that appear to let him get there, in addition to the charge under the Federal laws on transfers to Iran.

Yves notes that the likelihood of this lawsuit going forward is “zero” since the risk of losing in a NY civil court and the exposure of any other damning evidence that the superintendent has would be a disaster for SCB.

She also highlighted a comment made by Frank Partnoy, former derivatives salesman, now law professor, who noted:

   Indeed, the order puts the bank’s senior attorneys and compliance officers at the heart of the wire stripping scheme, even when outside counsel advised otherwise. As early as 1995, soon after President Bill Clinton announced economic sanctions against Iran, the bank’s general counsel allegedly “embraced a framework for regulatory evasion”. He allegedly strategised about how to avoid scrutiny by the US Office of Foreign Assets Control, known as OFAC, and instructed employees that a memorandum describing the plan to avoid regulatory compliance was “highly confidential & MUST NOT be sent to the US”….

   As recent debacles at Barclays, HSBC and now Standard Chartered demonstrate, employees of big global banks increasingly lack a moral compass. Some general counsels and compliance officers do provide ethical guidance. But many are facilitators or loophole instructors, there to show employees the best way to avoid the law. Not even mafia lawyers go that far; unlike many bankers, mobsters understand the value of an impartial consigliere who will tell them when to stop.

If silly civil lawsuits weren’t enough, the original Reuters’ article, the source of Marcy Wheeler’s original post, was edited to exclude the orders of magnitude of the fraud:

The Reuters article was a pretty damning picture of how the Get Out of Jail Free industry works.

And then, the most damning parts of the article disappeared (Update from Briinhild: the full story is back up). As Yves discovered later in the day yesterday, Reuters pulled those paragraphs of the story that described this whole process.

Yves then posted that Reuters was running interference for elite corruption by scrubbing the article clean of the damning parts and posted original Reuters’ article:

Now I decided to go have a look myself. Being on the vampire shift, I didn’t go looking until mid afternoon. And guess what, the story that was now at that URL was not the same story. Yes, there was a story on Standard Chartered. But the version that Marcy worked from was apparently the original, released at 00:28 AM, titled “U.S. regulators irate at NY action against StanChart.” I’ve loaded that version in a Word and put it up at ScribD, and am embedding it below. It’s 1766 words. Be sure to download it if you are interested in this topic.

Apparently, as was pointed out by an emptywheel reader, Briinhild, Marcy and Yves must have embarrassed Reuters because they reposted the original article later that day.

The latest today from Yves, this “plot thickens” as Federal regulators try to “leash and collar” Superintendent Lawsky:

Today, the Wall Street Journal reported that, “Regulators Seek Unity in U.K. Bank Talks.”

If you read the article, a more accurate headline would be “Federal regulators desperate to get in front of Lawsky mob and call it a parade.” All the article says is the mucho unhappy and very much outflanked Federal regulators have gotten a meeting with Lawsky. Just look at the disconnect between the PR in the first paragraph and the actual state of play in the second:

   U.S. authorities are forming a group with New York’s top financial regulator to negotiate a settlement with Standard Chartered over allegations it illegally hid financial dealings with Iran.

   The U.S. Treasury Department, Federal Reserve, U.S. Department of Justice and Manhattan district attorney’s office are scrambling to reach an understanding with the New York State Department of Financial Services over the ground rules for negotiations with the U.K.’s fifth-largest bank by assets, according to people familiar with the talks.

This is hysterical. “Ground rules for negotiations”? Lawsky does not need the permission of Geithner et. al. to negotiate with Standard Chartered. As long as Lawsky has Cuomo’s backing, he has all the leverage here. And three independent sources told me as of today that Cuomo was fully behind Lawsky. That means he is likely to remain free to operate as he sees fit. It’s a given that if the White House had any real sway over Cuomo and saw fit to intervene, they would have done so by now. There is no downside to Lawsky in going through the motions of seeing if there is a way for him to proceed and have the Feds save a bit of face.

Let me stress again: Lawsky has all the cards, and he must know that.

Yves also cites this article from Bloomberg:

   New York’s financial-services regulator has grounds to shut Standard Chartered Plc (STAN) in the state even if he accepts the firm’s argument that it illegally laundered only a fraction of the $250 billion he claims.

   As the state’s top banking regulator, Benjamin Lawsky has power to act in his discretion against any financial institution he deems untrustworthy, according to the charter of his year-old department.

   Penalties he could impose include fines and the revocation of the bank’s license to operate in the state…

   Even if Standard Chartered’s position is legally sound, the order’s disclosure of internal e-mails suggesting a conspiracy to hide the identity of Iranian clients from regulators has given Lawsky grounds to act when the two sides face off at an administrative hearing Aug. 15, according to experts on both sides of the Atlantic.

   “I don’t care whether it is a half of one percent that weren’t right,” said Arthur Levitt, former chairman of the Securities and Exchange Commission,…

   “There are going to be more that weren’t right…The e-mails are really outrageous. I think Lawsky has uncovered something that probably has a much deeper depth.”…

   Neil Barofsky, who oversaw the U.S. Troubled Asset Relief Program and criticized the U.S. Treasury Department in his book, Bailout, objected to the criticism heaped on Lawsky.

   “This is not Lawsky getting ahead of other regulators,” said Barofsky. “This is Lawsky doing his job.”…

   “Willful non-compliance is very serious,” said Tariq Mirza, a former Federal Deposit Insurance Corp. official now with Grant Thornton. “If those allegations can be substantiated, regulators throw the book at institutions.”

Another article from the International Business Times that speculates what SBC’s sentence would be if it were an individual found guilty of these crimes:

Under New York state statutes against those two crimes, a defendant found guilty could be sentenced to a penalty of between eight-and-one-third and 25 years. The attorney noted that “it seems likely that a maximum sentence would be given because of the extent of criminality alleged in this case.” And if the judge really wanted to throw the book at them, the attorney explained, they could consider every instance where Standard Chartered Bank engaged in alleged illegal conduct, no doubt hundreds of them, as a “discrete act of criminality” rather than “one criminal transaction.”

Federal involvement would make the possible prison term even stiffer, with the appropriate federal money-laundering statute carrying a penalty of “roughly 15 to 19 years,” and a racketeering conviction “punishable by up to 20 years” in Club Fed.

(emphasis mine)

Wouldn’t that be a delightful sight?

As Yves notes in her discussion of these news articles, there is a lot of spin or, as with the case of a New York Times article, misinformation:

There is also an article at the New York Times on Lawsky which comes close to being a hatchet job. It does not look as if the Times made any effort to get to anyone in Lawsky’s camp (by contrast, I know of at least one reporter working on a profile who says everyone who Lawsky has worked with him is extremely complimentary). It also has sources that are spinning (one might say misrepresenting) the genesis. It acknowledges that Lawsky discussed his findings and theories, so it undermines the “blindsided claim. We were told three months ago, with the Fed; the article says April, so this is pretty close to the same time frame and sounds like the same meeting. [..]

(emphasis mine)

The traditional MSM is going to do a lot of the work for federal regulators by sniping at Mr. Lawsky and painting him as a “rogue” and “over-stepping his authority”. It’s bloggers like Marcy Wheeler and Yves Smith that sort out the facts from the hype and innuendo. The ladies rock.

As Yves requested, if you live in New York and support what Mr. Lawsky is doing, especially since the New York Times is taking shots at him now, drop him a note using this form.

Thanks and a h/t to naked capitalism reader Bryan Sean McKown for the title.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on images to enlarge

August 10 is the 222nd day of the year (223rd in leap years) in the Gregorian calendar. There are 143 days remaining until the end of the year.

The term ‘the 10th of August’ is widely used by historians as a shorthand for the Storming of the Tuileries Palace on the 10th of August, 1792, the effective end of the French monarchy until it is restored in 1814.

On this day in  1846, Smithsonian Institution was created. After a decade of debate about how best to spend a bequest left to America from an obscure English scientist, President James K. Polk signs the Smithsonian Institution Act into law.

In 1829, James Smithson died in Italy, leaving behind a will with a peculiar footnote. In the event that his only nephew died without any heirs, Smithson decreed that the whole of his estate would go to “the United States of America, to found at Washington, under the name of the Smithsonian Institution, an Establishment for the increase and diffusion of knowledge.” Smithson’s curious bequest to a country that he had never visited aroused significant attention on both sides of the Atlantic.

After the nephew died without heirs in 1835, President Andrew Jackson informed Congress of the bequest, which amounted to 104,960 gold sovereigns, or US$500,000 ($10,100,997 in 2008 U.S. dollars after inflation). The money, however, was invested in shaky state bonds that quickly defaulted. After heated debate in Congress, former President John Quincy Adams successfully argued to restore the lost funds with interest.  Congress also debated whether the federal government had the authority to accept the gift. Congress ultimately accepted the legacy bequeathed to the nation and pledged the faith of the United States to the charitable trust July 1, 1836.

Eight years later, Congress passed an act establishing the Smithsonian Institution, a hybrid public/private partnership, and the act was signed into law on August 10, 1846 by James Polk. (See 20 U.S.C. § 41 (Ch. 178, Sec. 1, 9 Stat. 102).) The bill was drafted by Indiana Democratic Congressman Robert Dale Owen, a Socialist and son of Robert Owen, the father of the cooperative movement.

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Follow us on Twitter @StarsHollowGzt

Dean Baker: The Fed, Ben Bernanke and the rotten Libor

Ben Bernanke had an obligation as Fed chair to expose and stop the rigging of inter-bank lending rates.

The case of the rigged Libor turns out to be the scandal that just keeps on giving. It reveals a great deal about the behaviour of the Federal Reserve Board and central banks more generally.

Last month, Federal Reserve Board Chairman Ben Bernanke gave testimony before Congress in which he said that he had become aware of evidence that banks in the UK were rigging the Libor – the inter-bank lending rate and one of the primary benchmarks for short-term interest rates – in the autumn of 2008. According to Bernanke, he called this to the attention of Mervyn King, the head of the Bank of England. Apparently Mervyn King did nothing, since the rigging continued, but Bernanke told Congress there was nothing more that he could do.

The implications of Bernanke’s claim are incredible. There are trillions of dollars of car loans, mortgages and other debts, in the United States, tied to the Libor. There are also huge derivative contracts whose value depends on the Libor at a moment in time. People were winning or losing on these deals not based on the market, but rather on the rigged Libor rate being set by the big banks.

Michael T. Klare: The Coming Hunger Wars: Heat, Drought, Rising Food Costs, and Global Unrest

The Great Drought of 2012 has yet to come to an end, but we already know that its consequences will be severe. With more than one-half of America’s counties designated as drought disaster areas, the 2012 harvest of corn, soybeans, and other food staples is guaranteed to fall far short of predictions. This, in turn, will boost food prices domestically and abroad, causing increased misery for farmers and low-income Americans and far greater hardship for poor people in countries that rely on imported U.S. grains. [..]

At this point, the focus is understandably on the immediate consequences of the still ongoing Great Drought: dying crops, shrunken harvests, and rising food prices. But keep an eye out for the social and political effects that undoubtedly won’t begin to show up here or globally until later this year or 2013.  Better than any academic study, these will offer us a hint of what we can expect in the coming decades from a hunger-games world of rising temperatures, persistent droughts, recurring food shortages, and billions of famished, desperate people.

The fines that are being levied against banks and companies for investment fraud, fraudulent advertising, money laundering and the like are large but come nowhere near the cost to tax payers and investors. Since these fines are but a fraction of the profits that these criminals reap, the fines won’t deter them from repeating the offense. Nor does it help that as part of the settlement the company and its employees are let off the hook for criminal wrongdoing.

Glaxo Agrees to Pay $3 Billion in Fraud Settlement

In the largest settlement involving a pharmaceutical company, the British drugmaker GlaxoSmithKline agreed to plead guilty to criminal charges and pay $3 billion in fines for promoting its best-selling antidepressants for unapproved uses and failing to report safety data about a top diabetes drug, federal prosecutors announced Monday. The agreement also includes civil penalties for improper marketing of a half-dozen other drugs. [..]

Part of the civil settlement also includes claims that the company overcharged the government for drugs. Glaxo did not admit any wrongdoing in the civil settlement.

Despite the large amount, $3 billion represents only a portion of what Glaxo made on the drugs. Avandia, for example, racked up $10.4 billion in sales, Paxil brought in $11.6 billion, and Wellbutrin sales were $5.9 billion during the years covered by the settlement, according to IMS Health, a data group that consults for drugmakers.

In the New York Times article, Patrick Burns, spokesman for the whistle-blower advocacy group Taxpayers Against Fraud, stated, “So a $3 billion settlement for half a dozen drugs over 10 years can be rationalized as the cost of doing business.” Also, Eliot Spitzer, former New York State Attorney General who sued GlaxoSmithKline in 2004 over allegations about the drug Paxil, was quoted as saying that “What we’re learning is that money doesn’t deter corporate malfeasance, The only thing that will work in my view is C.E.O.’s and officials being forced to resign and individual culpability being enforced.”

In another case, Morgan Stanley, an international investment firm, has agreed to pay a fine of $4.8 million with no admission of wrongdoing for electricity price-fixing said to cost consumers $300 million. Justice department officials said that it sends a message to the banking industry. What message would that be?

The government said the arrangement allowed KeySpan to withhold substantial electricity generating capacity from the market, driving prices higher for consumers, and generated $21.6 million of net revenue for Morgan Stanley.

U.S. District Judge William Pauley in Manhattan said he shared the concerns of state officials and the AARP, a nonprofit serving people 50 and older, that any settlement should have reflected the harm to consumers and forced Morgan Stanley to give up the $21.6 million.

“Given the government’s stark allegations of manipulative conduct against Morgan Stanley, disgorgement of $4.8 million is a relatively mild sanction,” Pauley wrote. “There is a risk that a large financial services firm like Morgan Stanley could view such a modest penalty as merely a cost of doing business.

“But despite this court’s misgivings, the government’s decision to settle for less than full damages is entitled to judicial deference, particularly in view of the novelty of the government’s theory.”

The judge also rejected the AARP argument that the $4.8 million be returned to consumers, in part because sending it instead to the U.S. Treasury served the public interest.

So the consumers are left holding the bag, particularly the financially stressed elderly and poor, while the Morgan Stanley and Keyspan continue business as usual concocting new ways to break the law.

If whistleblowers can reveal it, why can’t the government prosecute it? The claim by the Obama administration that it’s too hard to find the evidence to pin on an individual just rings too hollow. It may be hard but it is possible with subpoenas and little more effort. It is well past time we held the criminals responsible for breaking the laws and stop prosecuting those who expose it.

It’s getting warmer and that appears to be the trend. Is it too late to so something? What are the consequences? Is there the political will to take action? Naomi Wolf exams those questions in this article from The Guardian about the impact of the current American drought, the American phenomenon of climate change denial and the effects of “political polarization” on public opinion:

America has led the world in climate change denial, a phenomenon noted with amazement by Europeans, not to mention thinking people around the world. Year after year, the US has failed to sign global treaties or curb emissions, even as our status as a source of a third of the world’s carbon emissions goes unchanged. [..]

But could our denial be cracking, this summer, as, in the heartland – that most iconic of American landscapes – broiling temperatures injure humans and cook fish in the water? This summer a crisis has occurred (though one that, again, is seldom reported on in terms of our outsize contribution to the disaster), as midwestern farmers lost vast swaths of their corn crop to scalding heat and drought. In the American unconscious of wishful ignorance, this disaster and loss was to be borne, as usual, by other people far away. [..]

But we face some serious problems in rising out of our torpor. In “Shifting Public Opinion on Climate Change: An Empirical Assessment of Factors Influencing Concern over Climate Change in the US, 2002-2010“, John Wihbey shows that Gallup surveys reveal Americans’ level of concern varying widely [..]

Wihbey and colleagues’ study found that this fluctuation was caused by, among other factors, political polarization. In other words, when one party says global warming is a crisis and the other says all that is nonsense, and there is no cooperation between political elites at both ends of the spectrum, the net result is apathy.

What is even more ominous, is how China and India have manipulated carbon credits to make a profits from the production of HFC-23, a gaseous byproduct of a coolant that causes global warming and is used in air-conditioners and then destroying it:

When the United Nations wanted to help slow climate change, it established what seemed a sensible system.

Greenhouse gases were rated based on their power to warm the atmosphere. The more dangerous the gas, the more that manufacturers in developing nations would be compensated as they reduced their emissions.

But where the United Nations envisioned environmental reform, some manufacturers of gases used in air-conditioning and refrigeration saw a lucrative business opportunity.

They quickly figured out that they could earn one carbon credit by eliminating one ton of carbon dioxide, but could earn more than 11,000 credits by simply destroying a ton of an obscure waste gas normally released in the manufacturing of a widely used coolant gas. That is because that byproduct has a huge global warming effect. The credits could be sold on international markets, earning tens of millions of dollars a year. [..]

What was intended to fix the problem of hydro-chlorofluorocarbons has now created its own major problem:

The United Nations and the European Union, through new rules and an outright ban, are trying to undo this unintended bonanza. But the lucrative incentive has become so entrenched that efforts to roll it back are proving tricky, even risky.

China and India, where most of the 19 factories are, have been resisting mightily. The manufacturers have grown accustomed to an income stream that in some years accounted for half their profits. The windfall has enhanced their power and influence. As a result, many environmental experts fear that if manufacturers are not paid to destroy the waste gas, they will simply resume releasing it into the atmosphere. [..]

Some Chinese producers have said that if the payments were to end, they would vent gas skyward. Such releases are illegal in most developed countries, but still permissible in China and India. [..]

Already, a small number of coolant factories in China that did not qualify for the United Nations carbon credits freely vent this dangerous chemical. And atmospheric levels are rapidly rising.

Wall St. also has their grubby paws in this, too. Goldman Sachs invested in carbon credits and a coolant factory in Monterrey, Mexico, that receives carbon credits is 49 percent owned by Honeywell. So these companies, especially in China and India, are holding the world hostage. Pay up or we kill the climate faster.

James Hansen, director of NASA’s Goddard Institute for Space Studies joined Eliot Spitzer, host of “Viewpoint” to discuss how heat waves are a indicator of global warming.

“If we continue with business as usual this century, we will drive to extinction 20 to 50 percent of the species on the planet,” Hansen says. “We are pushing the system an order of magnitude faster than any natural changes of climate in the past.”

“We’re gonna have to reduce carbon dioxide emissions, and that is not as difficult as you think. If we would just make fossil fuels pay for their true cost to society, we could begin to move to different energies and energy efficiency,” Hansen contends. “We should be collecting a fee from fossil fuel companies that gradually rises over time and 100 percent of that money should be distributed to the public, not one dime to the government. If we did that, the people who do better than average in limiting their fossil fuel use will actually get more in this dividend than they would pay in increased energy prices.”