Sixteen of the world's largest banks have been caught colluding to rig global interest rates. Why are we doing business with a corrupt global banking cartel?

United States Attorney General Eric Holder has declared that the too-big-to-fail Wall Street banks are too big to prosecute. But an outraged California jury might have different ideas. As noted in the California legal newspaper The Daily Journal:

California juries are not bashful - they have been known to render massive punitive damages awards that dwarf the award of compensatory (actual) damages.For example, in one securities fraud case jurors awarded $5.7 million in compensatory damages and $165 million in punitive damages. . . . And in a tobacco case with $5.5 million in compensatory damages, the jury awarded $3 billion in punitive damages . . .

The question, then, is how to get Wall Street banks before a California jury. How about charging them with common law fraud and breach of contract? That's what the FDIC just did in its massive 24-count civil suit for damages for LIBOR manipulation, filed in March 2014 against sixteen of the world's largest banks, including the three largest US banks - JP Morgan Chase, Bank of America and Citigroup.

Last month, as the Senate was busy negotiating the final details of its Ukraine aid package, Majority Leader Harry Reid became temporarily distracted with a campaign finance issue. Since winning re-election in 2010, Reid's campaign had purchased gifts for supporters and donors from vendors like Bed Bath & Beyond, Amazon, Nordstrom, and the Senate gift shop, among others. But one round of spending was directed to a less recognizable firm: Ryan Elisabeth, a jewelry line.

In 2012 and 2013, the campaign spent $31,267 purchasing gifts from the company, which is owned by Reid's granddaughter, Ryan Elisabeth Reid. All told, she took in nearly seven times more cash than all vendors of donor gifts combined during that period of time.

Veteran Nevada political journalist Jon Ralston first reported the news after receiving a tip about the expenditures. (Ryan Elisabeth's last name did not appear on the FEC reports, and the senator's office initially failed to confirm her identity.) While Sen. Reid does not appear to have broken the law, he understood that the purchases created a perception of favoritism. Lamenting the unwanted attention heaped on his granddaughter, he decided after the news broke that "it would be best to pay for her work out of my own pocket."

Ukrainian forces killed up to five pro-Moscow separatists in the east of the country, the Interior Ministry said on Thursday, as Russian President Vladimir Putin warned of "consequences" if Kiev used the army against its own people.

Interior Ministry forces backed by the army removed three checkpoints manned by armed groups in the separatist-controlled town of Slaviansk, the ministry said in a statement.

"During the armed clash up to five terrorists were eliminated," it said, adding that one person had been wounded on the side of government forces.

Under an international accord signed in Geneva last week, illegal armed groups, including the rebels occupying about a dozen public buildings in the largely Russian-speaking east, are supposed to disarm and go home.

Russia warned foreign companies working in the oil and gas sector that if they quit the country over Ukraine-related sanctions, they would not be able to return any time soon.

Natural Resources Minister Sergei Donskoy said on Thursday that foreign firms had not so far signaled they would withdraw from projects in Russia, the world's top crude oil producer, but that there would be a price to pay if they did.

"It is obvious that they won't return in the near future if they sever investment agreements with us, I mean there are consequences as well," Sergei Donskoy told reporters in the city of Birobidzhan in Russia's Far East.

"Russia is one of the most promising countries in terms of hydrocarbons production. If some contracts are severed here, then, colleagues, you lose a serious lump of your future pie."

As the post-coup regime in Ukraine sends troops and paramilitaries to crack down on ethnic Russian protesters in the east, the U.S. news media continues to feed the American public a steady dose of anti-Russian propaganda, often wrapped in accusations of "Russian propaganda," Robert Parry reports.

The acting president of the coup regime in Kiev announces that he is ordering an "anti-terrorist" operation against pro-Russian protesters in eastern Ukraine, while his national security chief says he has dispatched right-wing ultranationalist fighters who spearheaded the Feb. 22 coup that ousted elected President Viktor Yanukovych.

On Tuesday, Andriy Parubiy, head of the Ukrainian National Security Council, went on Twitter to declare, "Reserve unit of National Guard formed #Maidan Self-defense volunteers was sent to the front line this morning." Parubiy was referring to the neo-Nazi militias that provided the organized muscle that overthrew Yanukovych, forcing him to flee for his life. Some of these militias have since been incorporated into security forces as "National Guard."

Parubiy himself is a well-known neo-Nazi, who founded the Social-National Party of Ukraine in 1991. The party blended radical Ukrainian nationalism with neo-Nazi symbols. Parubiy also formed a paramilitary spinoff, the Patriots of Ukraine, and defended the awarding of the title, "Hero of Ukraine," to World War II Nazi collaborator Stepan Bandera, whose own paramilitary forces exterminated thousands of Jews and Poles in pursuit of a racially pure Ukraine.

During the months of protests aimed at overthrowing Yanukovych, Parubiy became the commandant of "Euromaidan," the name for the Kiev uprising, and - after the Feb. 22 coup - Parubiy was one of four far-right Ukrainian nationalists given control of a ministry, i.e. national security.

But the U.S. press has played down his role because his neo-Nazism conflicts with Official Washington's narrative that the neo-Nazis played little or no role in the "revolution." References to neo-Nazis in the "interim government" are dismissed as "Russian propaganda."

Yet there Parubiy was on Tuesday bragging that some of his neo-Nazi storm troopers - renamed "National Guard" - were now being sicced on rebellious eastern Ukraine as part of the Kiev government's "anti-terrorist" operation

• Whistleblower revealed staff are encouraged to sell most expensive deals
• Employees told they can triple £14,600 salary through commission
• Churches and charities including the Scouts among those targeted
• Some organisations have ended up £2,000 a year worse off as a result
• Words 'volume to value' written on walls of company's call centre
• Energy regulator Ofgem vowed to take 'firm action' if it finds British Gas has not been 'honest and transparent' with customers
• British Gas say they 'strongly refute' any inappropriate negotiations

British Gas is paying staff bonuses to inflate customers' bills by up to 60 per cent, a whistleblower has claimed.

The former employee said he felt 'disgusted' by the policy, which encouraged staff to target charities and small businesses and sell them the most expensive deals possible.

Employees were told they could triple their £14,600 salary through commission if they sold the highest-priced tariffs to enough customers.

Churches and charities - including the Scouts - were among those targeted by the policy, the whistleblower said, with some organisations ending up £2,000 a year worse off.

This is how empires collapse: one complicit participant at a time.

Before an empire collapses, it first erodes from within. The collapse may appear sudden, but the processes of internal rot hollowed out the resilience, resolve, purpose and vitality of the empire long before its final implosion.

What are these processes of internal rot? Here are a few of the most pervasive and destructive forces of internal corrosion:

1. Each institution within the system loses sight of its original purpose of serving the populace and becomes self-serving. This erosion of common purpose serving the common good is so gradual that participants forget there was a time when the focus wasn't on gaming the system to avoid work and accountability but serving the common good.

2. The corrupt Status Quo corrupts every individual who works within the system.Once an institution loses its original purpose and becomes self-serving, everyone within either seeks to maximize their own personal share of the swag and minimize their accountability, or they are forced out as a potentially dangerous uncorrupted insider.

The justification is always the same: everybody else is getting away with it, why shouldn't I? Empires decline one corruptible individual at a time.

As the standoff in the eastern Ukraine deteriorates into violence it's up to world powers to step in and calm things down. Despite tough talk from Washington, the US, EU, Russia and Ukraine have managed to reach a framework to peace in Geneva. But will it be enough to avert a civil war? Sophie asks the Russian Foreign minister himself - Sergey Lavrov is on Sophie&Co today.


Full Transcript:

Sophie Shevardnadze: Sergey Lavrov, Russia's Foreign minister, it's great to have you on our show today.

Sergey Lavrov: Thank you for the invitation.

SS: So, just the other day Joe Biden on his visit to Kiev said that time is short for Russia to make progress on its commitments made in Geneva. What is expected of Russia?

SL: Well, it's difficult to say because I discuss this almost daily with John Kerry. And frankly the American colleagues chose to put all the blame on Russia, including the origin of the conflict and including the steps which must be taken. They accuse us of having Russian troops, Russian agents in the east and South of Ukraine. They say that it is for the Russians only to give orders and the buildings illegally occupied would be liberated and that it is for the Russians to make sure that the East and South of Ukraine stops putting forward the demands for the federalization and the referendum and so on and so forth. This is absolute...you know...switching the goal post if you wish. In Geneva we all agreed that there must be reciprocal approach to any illegitimate action in Ukraine, be it in Kiev, be it in the West, be it in the East, be it in the South. And the people who started the process of illegitimate actions must step back first. It is absolutely abnormal due to any norms in a European city that Maidan is still occupied, that the buildings in Kiev are still occupied and in some other cities, that those who put on fire the buildings belonging to Communist party headquarters in Kiev, the buildings belonging to the Trade Union headquarters are not even under investigation. I don't even want to mention the sniper cases because everyone forgot about those snipers. And we only hear that "Let's concentrate on eliminating terrorist threats in the East and in the South".

Turkey has, for the first time, offered condolences to the descendants of the victims of the mass killing of Armenians by Ottoman troops during the First World War.

In a rare expression of sympathy on the eve of the 99th anniversary of the mass killing of Armenians, Turkish Prime Minister Recep Tayyip Erdogan issued an official statement on Wednesday which was translated into nine different languages, including Armenian.

Using an unprecedented conciliatory language, the Turkish premier called for dialogue between the two countries, and the formation of a commission to probe the incident.

"It is with this hope and belief that we wish that the Armenians who lost their lives in the context of the early 20th century rest in peace, and we convey our condolences to their grandchildren," Erdogan said.

"Having experienced events which had inhumane consequences - such as relocation - during the First World War, should not prevent Turks and Armenians from establishing compassion and mutually humane attitudes towards one another," he added.

With the agility of a seasoned Border Patrol veteran, the woman rushed after the students. She caught up with them just before they entered the exhibition hall of the eighth annual Border Security Expo, reaching out and grabbing the nearest of them by the shoulder. Slightly out of breath, she said, "You can't go in there, give me back your badges."

The astonished students had barely caught a glimpse of the dazzling pavilion of science-fiction-style products in that exhibition hall at the Phoenix Convention Center. There, just beyond their view, more than 100 companies, including Raytheon, General Dynamics, and Verizon, were trying to sell the latest in futuristic border policing technology to anyone with the money to buy it.

The students from Northeastern Illinois University didn't happen to fall into that category. An earnest manager at a nearby registration table insisted that, as they were not studying "border security," they weren't to be admitted. I asked him how he knew just what they were studying. His only answer was to assure me that next year no students would be allowed in at all.

Among the wonders those students would miss was a fake barrel cactus with a hollow interior (for the southern border) and similarly hollow tree stumps (for the northern border), all capable of being outfitted with surveillance cameras. "Anything that grows or exists in nature," Kurt Lugwisen of TimberSpy told a local Phoenix television station, "we build it."