Scandal | featured news

Twelve global banks that have been publicly linked to the Libor rate-rigging scandal face as much as $22bn in combined regulatory penalties and damages to investors and counterparties, according to Morgan Stanley estimates.

Joe Paterno and other top Penn State officials hushed up child sex abuse allegations against Jerry Sandusky more than a decade ago for fear of bad publicity, allowing Sandusky to prey on other youngsters, according to a scathing internal report issued Thursday on the scandal... After an eight-month inquiry, Freeh’s firm produced a 267-page report that concluded that Hall of Fame coach Paterno, President Graham Spanier, athletic director Tim Curley and vice president Gary Schultz “failed to protect against a child sexual predator.”

The Air Force is investigating a growing sexual-misconduct scandal in its basic-training operations, with a dozen male boot-camp instructors under suspicion of assaulting, harassing or having sex with female recruits.

"We need answers on this. Not defensive BS. Real answers."... Two of [Attorney General Eric] Holder's emails and one from [Deputy Attorney General James] Cole appear to show that they hadn't known about gun-walking but were determined to find out whether the allegations were true.

Leaders of the Republican-run House expect to vote this afternoon on a contempt of Congress citation for Attorney General Eric Holder... White House spokesman Jay Carney denounced the planned contempt vote as "political theater, an action taken by Congress that does not respond to the most urgent priorities of the American people."

A Fortune investigation reveals that the ATF never intentionally allowed guns to fall into the hands of Mexican drug cartels. How the world came to believe just the opposite is a tale of rivalry, murder, and political bloodlust.

The House committee chairman leading the fight to get Justice Department documents about a troubled gun-tracking operation says there's no evidence so far that White House officials were involved in misleading Congress or engaged in a cover-up....

A U.S. congressional panel voted on Wednesday to charge Attorney General Eric Holder with contempt of Congress after the Obama administration invoked executive privilege for the first time since coming to office, withholding some documents related to a failed gun-running investigation... "Instead of creating jobs or strengthening the middle class, congressional Republicans are spending their time on a politically motivated, taxpayer-funded election-year fishing expedition," White House communications director Dan Pfeiffer said.

Senators investigating the Secret Service prostitution scandal said Wednesday that dozens of reported episodes of misconduct by agents point to a culture of carousing in the agency and urged Director Mark Sullivan to get past his insistence that the romp in Cartagena was a one-time mistake....

Testimony Wednesday for a Senate committee in Washington will be the director’s first public comments on the prostitution scandal in Colombia last month.