2. VA, Prudential Made Secret Deal

Could this resonate as much as the Walter Reed scandal? Bloomberg
reports that since 1999, Prudential Financial Inc. has had a secret
agreement with the U.S. Department of Veterans Affairs that allows it to
withhold lump-sum payments of life-insurance benefits to the family of
fallen soldiers – so that Prudential can invest that money and keep
whatever money it makes for itself. The arrangement was completely
secret for 10 years until it was put into writing in 2009. “Every
veteran I’ve spoken with is appalled at the brazen war profiteering by
Prudential,” says the executive director of Veterans for Common Sense.
Survivors who request lump-sum payments are sent “checkbooks” –
essentially, IOUs that aren’t insured by the FDIC – instead of actual
checks. Prudential makes eight times as much through the investments as
what it pays in interest to beneficiaries.

Read it at Bloomberg: