News Corp Faces Potential Fallout in US

witness23

Veteran Expediter
Reminds me of scripture.
Luke 12:13 (NIV): What you have said in the dark will be heard in the daylight, and what you have whispered in the ear in the inner rooms will be proclaimed from the roofs.

News Corp Faces Potential Fallout in US
July 15, 2011
Peter Fedynsky | New York

Link: News Corp Faces Potential Fallout in US | USA | English

U.S.-based News Corp. is at the center of a phone-hacking scandal in Britain that is having serious business and legal implications for the media giant. There is increased scrutiny in the United States of News Corp. and its chairman, Rupert Murdoch.

Allegations that the U.S.-based News Corp. violated British law may have legal consequences for the company in the United States. Several U.S. senators and Republican Congressman Peter King have called for an investigation to determine if the company violated any American laws. Attorney General Eric Holder, the Securities and Exchange Commission and the Federal Bureau of Investigation have responded with preliminary inquiries.

Jay Fahy, a former federal prosecutor and criminal defense attorney, explains relevant laws.

“On the criminal side, from what we know, it’s the Foreign Corrupt Practices Act and perhaps some privacy violations, or mail fraud or wire fraud as to breaking into cell phone records," said Fahy. "There may also be bribery if cell phone companies were somehow given money.”

News Corp. is alleged to have bribed British police to get information for stories run in its tabloid News of the World. The Foreign Corrupt Practices Act extends a U.S. prohibition against bribery to include U.S. companies operating abroad. Former News of the World editor Andy Coulson, who once served as a spokesman for British Prime Minister David Cameron, has been arrested in the case, which involves not only the possible tapping of cell phones in Britain, but of 9/11 victims in the United States.

News Corp. has also suffered multi-billion-dollar business losses. The media giant was forced to scuttle plans to buy a controlling share of the lucrative British Sky Broadcasting, Britain’s biggest satellite broadcaster.

Felix Gillette, a reporter for Bloomberg Businessweek, says the scandal has also pummeled the company’s stock.

“They’ve lost on paper more than $5 billion," said Gilette. "I think shareholders are nervous about what this means for the future of the whole company."

News Corp. chairman Rupert Murdoch, an Australian by birth, acquired U.S. citizenship to be eligible for media ownership in the United States. His assets include a Hollywood studio and the Fox television network, which is particularly influential among American conservatives.

Murdoch has been criticized for consolidating media, depriving the public of diverse viewpoints needed to make informed decisions in a democratic society. Among the critics is Dean Starkman, a fellow at the Columbia Journalism Review.

“This moment, with the scandal in the U.K., it has the potential to radically change the media landscape both here in the U.S. and around the world," said Starkman.

Starkman says the phone-hacking scandal could give smaller media organizations an opportunity to challenge the power that News Corp. has acquired. That power includes 27 broadcasting licenses in the United States issued by the Federal Communications Commission. Jay Fahy says the FCC could refuse to renew those licenses.

“If the FCC took a hard line on this, and it is proven that Murdoch knew of it, or his son knew of it, or very high level people in the company knew of it, this could cause them to lose those licenses, and if those licenses are lost, that’s the end of his empire," he said.

Fox News has made little mention of the scandal and did not respond to VOA’s request for an interview. Rupert Murdoch told The Wall Street Journal, which he owns, that he is creating an independent committee to investigate allegations of possibly illegal reporting tactics that have shaken his company.
 

witness23

Veteran Expediter
Les Hinton sacrificed, but the worst is yet to come for News Corp

Every time Murdoch ditches a key executive, the flames of scandal flick ever closer to him, writes Matt Wells
Friday 15 July 2011 23.03 BST

link: Les Hinton sacrificed, but the worst is yet to come for News Corp | Analysis | Media | guardian.co.uk

Les-Hinton-and-Rupert-Mur-007.jpg

Les Hinton and Rupert Murdoch in 2002. Hinton headed News International when the Neof the World phone-hacking allegations first arose. Photograph: PA

No relationship is safe, no loyal bond strong enough for Rupert Murdoch who – looking more than the sum of his 80 years – is mounting a final battle to save the company he built from nothing.

His decision to throw Les Hinton to the wolves is his most dramatic move yet. For more than 50 years, as a journalist and then an executive, Hinton loyally served the Murdoch empire from its roots in Australia to the height of its power in New York.

Now, in a desperate effort to save News Corporation's most valuable assets – its 27 US broadcast licences and the 20th Century Fox movie studio – Murdoch is prepared to sacrifice one of his closest allies.

The problem for Murdoch is that every time he ditches a key executive, the flames of scandal flick ever closer to him.

Hinton was ditched because he was the crucial link between Murdoch's valuable US businesses and the tainted operation in Britain. He was at the helm of NI – the holding company for his UK newspapers including the News of the World and the Times – when it seemed that everyone who was in sniffing distance of a significant news story found their phones being hacked.

Questions were being raised about what Hinton knew about corrupt payments to London police officers: if he was shown to have been aware of them, that would be a felony in the US under the Foreign Corrupt Practices Act.

The problem for News Corp now is that, at every stage, its attempts to contain this story have failed. The decision to close the News of the World was motivated in part to save the chief executive of NI, Rebekah Brooks: that decision bombed and Brooks resigned on Friday.

But the departure of Brooks was not enough to contain the scandal in Britain, so Hinton, who has been more significant to the company's fortunes and to Murdoch personally for far longer than Brooks, also left.

The inevitable next move for Murdoch is prolicide. His son James, appointed in 2007 as chairman and chief executive of News Corporation's operations in Europe and Asia, based at News International's headquarters in Wapping, east London, clings on – but only for now.

In London, James Murdoch oversaw the response to the hacking scandal. He approved the £700,000 hush money paid to Gordon Taylor, the former chief executive of the Professional Footballers' Association – a decision he has blamed on poor advice. (The legal director of News International, Tom Crone, was one of the executives of News International to leave this week.)

The departure of Hinton suggests that News Corporation has finally got to grips with the global significance of this story, but the worst is yet to come. The FBI has launched an investigation into accusations that News of the World journalists asked a former New York police officer for the phone records of relatives of 9/11 victims. If that toxic allegation is shown to have been true, one thing is certain: Fox News is finished, along with the rest of News Corporation as we know it.

The emotional supercharge of 9/11 in the US is many times greater than Milly Dowler in the UK – and look what happened here.

Commentators have compared the crisis to Watergate; Carl Bernstein, the former Washington Post reporter whose revelations helped depose a US president, says it is evident to him the events of the past week "are the beginning, not the end, of the seismic event".

To coin a famous Murdoch newspaper headline: will the last person to leave News Corporation turn off the lights?
 

witness23

Veteran Expediter
Scotland Yard chief resigns in tabloid scandal
Metropolitan Police Commissioner Paul Stephenson says he is stepping down because of continued criticism and speculation over links between British police and Rupert Murdoch's news empire.

Link: Britain tabloid scandal: Scotland Yard chief quits in tabloid scandal - latimes.com

63310965.jpg

News Corp.'s Chief Executive Rupert Murdoch, left, is seen last week with Rebekah Brooks, one of his top deputies who resigned her position as head of his company's British subsidiary. Both are set to testify before a parliamentary committee. (Olivia Harris, Reuters / July 10, 2011)

By Henry Chu, Los Angeles Times
July 17, 2011, 5:00 p.m.


Reporting from London— The head of Scotland Yard resigned amid a phone-hacking scandal that has reached into the highest levels of public life in Britain, a shocking turn of events that came hours after the arrest of one of media baron Rupert Murdoch's most trusted deputies.

Paul Stephenson on Sunday night said he was stepping down as commissioner of the Metropolitan Police Service, as Scotland Yard is formally known, because of continued criticism and speculation over links between senior police officials and Murdoch's media empire.

Stephenson's announcement came hours after Rebekah Brooks, the former chief of Murdoch's British operations, was arrested on suspicion of conspiring to intercept private voicemail messages and on corruption charges stemming from bribes allegedly paid to police officers by journalists in exchange for information.

The two surprising developments are certain to focus greater attention on Murdoch's scheduled appearance Tuesday before a parliamentary committee to answer questions on the allegations of large-scale cellphone hacking by the News of the World, a now-defunct tabloid owned by his media conglomerate News Corp.

The scandal has reached far beyond the media to envelop the police, who have been accused of conducting a halfhearted investigation into the hacking allegations in order to preserve a good relationship with the press, and high-ranking politicians, who have also been criticized for maintaining too-cozy ties with the media, Murdoch's newspapers in particular.

Public confidence in key institutions of British society — the police, politicians and the press — has now been badly shaken.

Stephenson acknowledged that Scotland Yard's initial inquiry of allegations of phone hacking by the News of the World several years ago was inadequate, though he said he could only rely on the word of his subordinates that the investigation had been thorough and successful.

He said he was unaware of the existence of about 11,000 pages of evidence seized from a private investigator hired by the News of the World — papers that showed the tabloid may have ordered the hacking of the cellphones of nearly 4,000 people, including celebrities, politicians and crime victims.

Stephenson also rejected allegations of impropriety over Scotland Yard's decision to hire a former executive editor of the News of the World as a part-time public-relations consultant in 2009, at a time when the police were being pressed to renew their investigation into the hacking allegations. That editor, Neil Wallis, has since been arrested in connection with the scandal, raising questions about Stephenson's judgment.

"As commissioner, I carry ultimate responsibility for the position we find ourselves in. With hindsight, I wish we had judged some matters involved in this affair differently. I didn't and that's that," he said in a prepared statement.

The hacking allegations are now the subject of a massive new investigation by Scotland Yard headed by officers who were not involved in the original effort. Stephenson said the new inquiry would give the police "the opportunity to right the wrong done to victims."

He said it was important for him to step down now to allow the appointment of a new commissioner in good time before London hosts the Summer Olympics in 2012, which will require a mammoth security operation.

Stephenson brushed aside another controversy over his acceptance of a free stay at a spa connected to Wallis.

"My integrity is completely intact. I may wish we had done some things differently, but I will not lose any sleep over my personal integrity," he said emphatically.

Earlier Sunday, Brooks became the highest-ranking executive in Murdoch's media empire to be arrested in connection with the scandal. After being questioned, she was released on bail early Monday, British news reports said.

Until her resignation Friday, Brooks was head of News International, News Corp.'s British subsidiary, and one of Murdoch's closest confidants. She served as editor of the News of the World from 2000 to 2003. In 2002, the paper is believed to have hacked into the cellphone of a kidnapped 13-year-old girl who was later found slain.

Last week, both Stephenson and Brooks were called to appear at the same parliamentary committee hearing as Murdoch to give evidence. Stephenson is still expected to attend Tuesday; Brooks' participation has now been thrown into doubt.

For Murdoch, the challenge Tuesday will be to strike the right note of humility and contrition, to answer questions as truthfully as he can while protecting his company's interests, and to remember that his audience extends far beyond the handful of lawmakers before him to millions of television viewers worldwide.

Analysts said it was the media mogul's only hope for salvaging a reputation so badly battered that a man once powerful enough to make British lawmakers come running finds himself being peremptorily summoned by them instead.

"Sackcloth and ashes from now on" is how Brian Cathcart, a journalism professor and member of a campaign demanding full accountability over the scandal, described the attitude Murdoch must adopt to keep public opinion here from further hardening against him.

Over the weekend, News International took out full-page advertisements in several British newspapers apologizing for the "serious wrongdoing" at the News of the World and promising the company's "full cooperation" with police.

Paul Connew, a former deputy editor of the News of the World and now a public-relations consultant, expects Murdoch to maintain a sorrowful tone at the committee hearing.

"My hunch would be that Rupert would want to make an opening statement when it comes to his turn and make a public apology," Connew said.

"The more candid he is, the more chance … the damage control could be pretty successful," Connew said.

Murdoch, News Corp.'s chairman, will almost certainly deny any personal knowledge of phone hacking at the News of the World. Since the tabloid represented only a minuscule part of his media empire, his denials will seem plausible, analysts say.

It will be considerably more difficult for his son, James, and Brooks to claim ignorance, as they have until now.

The younger Murdoch, chairman of News International, authorized an out-of-court payment of more than $1 million to a hacking victim in 2008, which critics say looks far more like hush money than compensation for an invasion of privacy. James Murdoch maintains that he was not given a full picture by his staff of what was happening at the News of the World when he approved the payout.

Although most parliamentary committee hearings are dull, technical affairs that attract little outside interest, Tuesday's session, which will be broadcast live, is almost certain to draw a global audience.

Patrick Dunleavy, a political analyst at the London School of Economics, said the quality of the questioning by the committee is likely to vary widely. Some lawmakers may relish an opportunity to vent their spleen against a media kingpin before whose power they once trembled; others may ask strong first questions but flail at follow-up ones.

Many of the committee members "are going to be completely out of their depth," Dunleavy said. "It's not like Congress where congressional committees are used to having masses of cameras and masses of people hanging on every word.

"It's probably going to be the globally most watched select committee event ever in the entire history of the U.K. Parliament."
 

Turtle

Administrator
Staff member
Retired Expediter
Yeah. And...?
This is The Soapbox, not Google Junior, The Mini News Aggregator. It's not like no one here knows about all this and we need news stories reprinted here without comment. This is front page news on most newspapers and news Web sites. So what's your comments on it?
 

witness23

Veteran Expediter
This is The Soapbox, not Google Junior, The Mini News Aggregator. It's not like no one here knows about all this and we need news stories reprinted here without comment.

I'll be looking forward to reading that same criticism of others when they decide to post something without commenting. Anyhoo...I did comment by the way, look at the first post. The following posts afterwards were just updates on the original story. In the future I will add the word "Update".

This is front page news on most newspapers and news Web sites. So what's your comments on it?

What come's around, goes around, Aint karma a b*tch?, you reap what you sow and my original comment..... What you have said in the dark will be heard in the daylight, and what you have whispered in the ear in the inner rooms will be proclaimed from the roofs.

Now, if you would've came into the thread without an attitude and asked my thoughts or given your thoughts on the story, then we may have actually had a discussion about it. I thought if there was anyone interested in this story it would be you. I think we both have the same disdain for what they are calling "journalism" these days, I would hope others here would to. Hey, no biggie, you got that funny feeling in your pants again, I understand.
 

hdxpedx

Veteran Expediter
Fleet Owner
Whistleblower in U.K. Phone-Hacking Scandal Reportedly Found Dead -- PLOT THICKENS!

SORO'S News.. Destroying Freedom of the Press!
 

Turtle

Administrator
Staff member
Retired Expediter
I'll be looking forward to reading that same criticism of others when they decide to post something without commenting.
Depends on what that "something" is. If it's front page news, one of the leading major news stories and not all that controversial, the same criticism has been and will continue to be given. If it's not something that many people are aware of, like odd-ball news or something off the main pages, or something which doesn't require any comments beyond the subject itself to spark debate, then criticism is unlikely.

Anyhoo...I did comment by the way, look at the first post.
Wasn't really a comment to spark debate, or worth noting, really.

The following posts afterwards were just updates on the original story. In the future I will add the word "Update".
If you like. No need, tho.

What come's around, goes around, Aint karma a b*tch?, you reap what you sow and my original comment..... What you have said in the dark will be heard in the daylight, and what you have whispered in the ear in the inner rooms will be proclaimed from the roofs.
That's my point - you "comment" in the first post, and now here, is nothing more than a "golly, imagine that, huh!, you break the law and you get in trouble, hmmmm." Thought provoking comments, indeed. <snort>

Now, if you would've came into the thread without an attitude and asked my thoughts or given your thoughts on the story, then we may have actually had a discussion about it.
I didn't come into the thread with an attitude, and I shouldn't have had to ask for your thoughts, as you should have provided them already, and my thoughts are pretty much the same as yours (golly gee whiz, look what yellow journalism is like), so there's nothing to discuss as far as I can tell, other than "Ooohh, bad Murdoch, bad!" which isn't exactly fodder for debate, either. If someone wants to take the position that hacking into phones is a fine example of acceptable journalism, now you've got a debate, if they can make their case, that is.

I thought if there was anyone interested in this story it would be you. I think we both have the same disdain for what they are calling "journalism" these days, I would hope others here would to.
Nope, it's boring and expected.

Hey, no biggie, you got that funny feeling in your pants again, I understand.
Was that really necessary? Why do you always want to make things personal and be confrontational?
 

witness23

Veteran Expediter
and my thoughts are pretty much the same as yours (golly gee whiz, look what yellow journalism is like), so there's nothing to discuss as far as I can tell,

No, my thoughts are, this is goes farrrrr beyond Yellow Journalism , hence my opening comment.

Forgot, I wanted to add a description of "Yellow Journalism":

*disclaimer: I know, I know its from wikipedia, get over it.
link: http://en.wikipedia.org/wiki/Yellow_journalism
Yellow journalism or the yellow press is a type of journalism that presents little or no legitimate well-researched news and instead uses eye-catching headlines to sell more newspapers.[1] Techniques may include exaggerations of news events, scandal-mongering, or sensationalism.[1] By extension "Yellow Journalism" is used today as a pejorative to decry any journalism that treats news in an unprofessional or unethical fashion.



Here ya go. How will this scandal effect our newspapers and news networks? Will people be more critical of the news they are getting? Will networks and newspapers "up' their standards? How is this effecting the UK and its people? And.......does this have George Soros' fingerprints on it?
 
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Turtle

Administrator
Staff member
Retired Expediter
No, my thoughts are, this is goes farrrrr beyond Yellow Journalism , hence my opening comment.
Well, it's Luke 12:3, not 12:13. But Luke 12:3 doesn't address journalism at all, it addresses the keeping of secrets, and how people cannot keep secrets. It doesn't really apply to the story. The scandal goes to illegally breaking and entering to steal information. Whether it's breaking into a house or business and rifling through a desk drawer, or breaking into a phone, it's the same thing.

Incidentally, a little known fact is the text of Luke 12:3 was first discovered by Luke himself inside a fortune cookie at Tso's Hunan Eden, a popular restaurant just outside the walls of Jerusalem. The instant he read the fortune, he knew Peter's secret would be outed later in the week by that annoying rooster that's always crowing on the roof of the chicken house.

Here ya go. How will this scandal effect our newspapers and news networks? Will people be more critical of the news they are getting? Will networks and newspapers "up' their standards? How is this effecting the UK and its people? And.......does this have George Soros' fingerprints on it?
It won't affect our newspapers and news networks at all, unless some here have been engaging in the same thing. At best, editors may want reporters to be more forthcoming in the news room about their sources. It's unlikely that the American people won't be more critical of news. Most just sit back and take it all in, anyway, and being critical requires effort. It's affecting the UK and it's people because many of the feel violated by the press. George Soros? No.
 
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greg334

Veteran Expediter
I thought we lived in the age of Yellow Journalism ... HLN is reliving the anthony case, Fox reliving Obama's first two years and the rest of the media is either making things over proportioned or in the case of a few like Rather, just making it all up.

WE HAVE NO REAL JOURNALIST IN OUR WESTERN WORLD

You do know that with all the news about the debt, congress found time to pass an energy bill?
 

greg334

Veteran Expediter
I could not include them, they were post murrow and it seems that whole Rather/Cronkite/Brinkely types took over, the TV news went down in quality and as it went down, the printed news went with it.

We really haven't had any good reporting since the 50's, the 60's opened up the conscience of the journalist and the result was no longer a journalist who is faithful to their country but to the world.
 

Tennesseahawk

Veteran Expediter
Can we say Iran/Contra?



Can we say Cambodians?

Can we say two things severely overplayed by the media?

Can we say Whitewater? Can you say got away with it? Can you say Vince Foster? Can you say plenty of victims who didn't get justice in the 90s?

I agree with Diva about Fast and Furious. It SHOULD be the new Watergate. However, with the messiah in charge, it won't get the proper lip service. If W started that operation, he'd have been crucified, both internationally, and by the media.
 

skyraider

Veteran Expediter
US Navy
Les Hinton sacrificed, but the worst is yet to come for News Corp

Every time Murdoch ditches a key executive, the flames of scandal flick ever closer to him, writes Matt Wells
Friday 15 July 2011 23.03 BST

link: Les Hinton sacrificed, but the worst is yet to come for News Corp | Analysis | Media | guardian.co.uk

Les-Hinton-and-Rupert-Mur-007.jpg

Les Hinton and Rupert Murdoch in 2002. Hinton headed News International when the Neof the World phone-hacking allegations first arose. Photograph: PA

Some law firm will retire 10s over on this mess.
 

copdsux

Veteran Expediter
Charter Member
I'm going with Turtle, on the need to post an entire article, regarding the Murdoch mess. If you have a computer, or TV, or a modicum of interest in what's going on, in the world, you would already know about this scandal. If you don't know about it, it is because you don't want to know.
 
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