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Will News Corp face investigation in the US?

A Senator has called for practices of Murdoch's US journalists to be examined, raising the stakes for News Corp.

Jay Rockefeller, a key Democratic senator and chairman of the Senate commerce committee, has called for the authorities to investigate whether journalists at Rupert Murdoch's News Corporation targeted US citizens. In a written statement, he said:

I encourage the appropriate agencies to investigate to ensure that Americans have not had their privacy violated.

The reported hacking by News Corporation newspapers against a range of individuals -- including children -- is offensive and a serious breach of journalistic ethics. This raises serious questions about whether the company has broken US law.

Rockefeller is the first significant figure in Congress to call for an investigation, and his intervention adds weight to the growing ranks of pressure groups demanding one.

Jodi Seth, chairman of the Senate sub-committee on communications, told the Daily Telegraph that an inquiry is currently unlikely:

We're keeping an eye on the situation, but are not planning on looking into it at this time. For now, all that is certain is that there was hacking in Britain, which is outside of our jurisdiction.

But as the pressure builds, this may change. The Daily Mirror has already claimed that News of the World reporters attempted to bribe a New York police officer for access to the phone records of victims of the September 11 attacks. If this is substantiated, it will have far-reaching repercussions in the US. Republican politicians in particular have close ties to Murdoch because of his Fox News network, but it is unlikely that this would take priority over their commitment to terror victims and war veterans.

Despite Seth's statement, the very public nature of the case might eventually make it difficult for regulatory agencies to turn a blind eye, given the emphasis they place on deterrence. Les Hinton, now chief executive of Dow Jones in the US, was formerly head of News International and is directly implicated in the case. Robert Thomson, editor of the Wall Street Journal, formerly edited the Times

If the scandal continues to widen out from the News of the World, the suggestion that corrupt practices infected the whole company could make a US investigation inevitable. The Center for American Progress Action Fund, run by John Podesta, former chief of staff to Bill Clinton, is organising a petition on this basis, saying:

Although initial reports focused on the U.K. paper News of the World, recent reports suggest that this disturbing conduct extended to several other News Corp properties.

"Given the seriousness of these allegations, we ask that you immediately begin an investigation of all entities controlled by News Corp, including domestic subsidiaries such as Fox News, The Wall Street Journal, and the New York Post.

Yet another possibility is that the Security and Exchanges Commission (SEC), a federal regulatory agency, will look into whether News Corp has violated the Foreign Corrupt Practices Act, which makes it a crime for any American-linked company to bribe foreign officials to obtain or keep business. This could make action on UK soil -- such as paying police officers or royal staff for information and contact details -- a criminal offence in the US.

Given that the vast majority of Murdoch's empire is made up of his US assets -- Fox News, the Wall Street Journal, the New York Post and 20th Century Fox -- this could be a catastrophic development for the company.

Tags: Phone hacking scandal  Rupert Murdoch

10 comments

GTas's picture

On the basis of the article by none other than actor Hugh Grant from April 2011 which sort of started the initial SLOW police investigation in the UK, there is NO doubt that the covers should be pulled back on this whole organisation and particularly in the USA where the influence of the one company has the power to corrupt the whole operation of the USA governmental system. In hindsight, and when it all comes out, WikiLeaks is probably going to be looked at as a service to democracy, the Murdoch empire as something akin to the axis of evil that presidents spoke of. They just didn't recognize the correct target.

tom_harries's picture

A US investigation would be a sight to see, and I reckon more thorough than the UK inquiries, but I will believe it when I see it.

mkmkmkmmm's picture

=http://www.abcneed.com=

=http://www.abcneed.com=

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=http://www.abcneed.com=

michal karski's picture

Steve Bell's cartoon in the Guardian today (14th - it's Bastille Day, isn't it?)really cracked me up, but, let's face it, father and son do have some serious questions to answer - n'est-ce pas?

KMansfield's picture

No, there will be a white wash in the US. They don't call him Jello Jay for nothing. Not a single banker has gone to jail for control fraud for mortgage backed securities, but several million people have thrown out of their home after getting predatory loans, in fact they are part of the plutarchy, and holding seats in Obama's cabinet, just like murdoch. Laws, punishment and taxes are for the little people.

Tom's picture

What Rockefeller's really saying is that this is a gift that will help Obama get re-elected.

Everybody talks about News Corp., but nobody does anything about it. Fox is a neocon propaganda channel. But in the dog-eat-dog capitalist States, nobody cares about that as long as it makes money. The politicians are fighting over the debt ceiling. Nobody wants to get blamed for screwing over the country.

Answer? A new scandal to make the Democrats look good in cracking down on corporate crime. What better target than one of the richest people?

Lord Howard Hurts's picture

All this hype while we have a sitting President who has presented a fake birth certificate as his "true, Hawaiian, certificate". Several document experts have attested that his presented document is fake, but not one person in the Congress of the United States has demanded that the document, Obama presented, be compared with the birth certificate on record in Hawaii, to be assure the public that Obama did in fact present his true and legal certificate. But nowm Congress finds this Murdoch issue so important. Wake Up Congress. The President Has Produced A Fake Birth Certificate. Protect the public by demanding an investigation by the FBI, to either prove or disprove the authenticity of this birth certificate.
Lord Howard Hurts freedomfiles.blogspot.com

jane's picture

want to post this article in facebook ! where is the link ?

Alan Dente's picture

It's truly tragic, and very hilarious, that Murdoch and his all-powerful company might come crashing down soon. No one in the UK will shed a single tear over this. If a news company is going to set itself up as some kind of moral arbiter, then it has to be cleaner than clean itself. This is clearly not the case. Fox News, anyone? We'll see, on that count, in the near future.

It is very telling that Murdoch has gone on record to say that 'worse is to come' re: phone hacking. The phones of 9/11 victims spring to mind. I mean, how much 'worse' can it get than hacking a murdered girl's phone, deleting messages, and thereby giving her family false hope that she had accessed and deleted the messages? It's either that or we'll find out that NC invented a time machine and went back and saved Hitler's life during that assassination attempt by army officers...

Just to confuse the matter, I'm going to start up an online campaign demanding to see Murdoch's birth certificate. I don't really care what's on it, I just want to rub his face in it a bit more. Sweet.

thinkov's picture

lord howard you are a fantasist of astronmical proprtions

you really should fuck off -as should the Rupert empire

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