“The Beast” is not contained.

“The relationship between the federal government and the oil company has been an awkward collaboration all along — “We have them by the neck,” Interior Secretary Ken Salazar said of BP in congressional testimony last week — but it reached a turning point Monday when the administration said it no longer wants to share a podium with BP at the daily briefing in Louisiana. Instead, the national incident commander, Coast Guard Adm. Thad W. Allen, will give a solo briefing wherever he happens to be.“

With “Top Kill” a failure, the way forward murky, the environmental impact likely irrevocable, and oil still flowing into the Gulf at a rate three times what BP tried to spin, the Obama administration begins to move toward a more confrontational footing, including having Attorney General Holder look into a possible criminal investigation. Yeah, I’d say there’s a case there. And it’d be a much better use of Justice’s time than its flat-out reprehensible war on whistleblowers. (Aquaman cover via Graphic Policy. And Spongebob fared little better.)

Update 2: “‘We will prosecute to the fullest extent of the law, anyone who has violated the law,’ Holder said. ‘This disaster is nothing less than a tragedy.’” I’m all for it — Let’s get some accountability here for once. But, hey, you know what else is a tragedy? Torture. And you know what else? Indefinite detentions. And you know what else? The fraud-fueled Wall St. meltdown. As I noted above, the only folks this Justice Dept. seems to have been cracking down on so far, in full defiance of 2008 campaign promises about transparency, are whistleblowers. Their priorities have seemed awfully screwed-up thus far, to say the least.

Cut Corners Kill Coasts.

“We had this gradual discovery during Hurricane Katrina, where a natural disaster eventually became seen as what it was, a man-made failure. And now, what was called an ‘act of God’ and a freak accident by the defenders of the pollution industry is now being labeled, proof positive, as the consequence of design failure. Not only did the blowout preventer under the Deepwater Horizon well have a leak in it, not only did it include a dead battery, not only were the tests on it falsified for years, but when engineers actually needed to use it and tried to activate it, they didn’t have the right schematics.“

As the Gulf runs black, it’s the same old story: FDL’s David Dayen brings us up-to-date on the idiotic and/or corrupt shenanigans coming to light in the wake of the (still-gushing) Deepwater Horizon gusher. “This is all a consequence of aggressive deregulation by industry, the maneuvers whereby powerful interests save billions in safety costs. They follow the rules at their discretion, they practically own the regulatory agency. It’s amazing how much this mirrors the problems on Wall Street. And just like with Goldman Sachs, the criminal justice system may get involved.” (Pic via TBP.)

Update: “‘We don’t have any idea how to stop this,’ Simmons said of the Gulf leak. Some of the proposed strategies — such as temporarily plugging the leaking pipe with a jet of golf balls and other material — are a ‘joke,’ he added. ‘We really are in unprecedented waters.’“

In a Flash, a Grim Recognition.

“The initial reaction of traders to the Flash Crash was that some human must have made a mistake submitting a trade. But the SEC…hasn’t found evidence of a ‘Fat Fingered Louie’ punching a billion rather than a million on an order. In fact, the SEC still doesn’t know what caused this crash. Curiously, no one is focusing on what caused the crash to stop…JP Morgan and Merrill Lynch were big buyers precisely as the market hit minus one thousand points on the Dow. It seems rather odd that both these firms at the same time would see the same trading opportunity.

In fact, what they did was violate one of the prime rules of trading: never try to catch a falling knife. The market was falling fast and furious at the point they entered the pit to buy equity futures, so why did they take such an enormous risk? We learned yesterday that both of these firms, plus Goldman Sachs, were such superb traders in the market that none of them had a single losing trading day all last quarter. This type of risky trade is not how you get to be a superb trader.“

Over at the Agonist, Numerian digs deep into last week’s “Flash Crash” — and comes to some very troubling conclusions. To wit, the big players know the thresholds where the trading algorithms kick in, and thus, basically, the fix is in. “The stock market seems to be nothing but a playground for the big banks and other connected firms who get a preview peek at everything that goes through the market, and who can program their computers to skim profits off daily with no risk whatever. The stock market is also, quite possibly, prone to more serious manipulation that resulted in last Thursday’s crash.“

Oof. I’m out of my comfort zone when it comes to understanding market behavior, so I hope someone has a better explanation for the Flash Crash than the disconcertingly plausible one offered here. (Just saying Greece doesn’t quite cut it, I don’t think.)

Drill Baby…Spill.

“‘There’s no way to wash the oil out of a Spartina marsh,’ said Thomas Shirley, a professor at Texas A&M University’s Harte Research Institute for Gulf of Mexico Studies. Spartina, or cordgrass, is the dominant plant in these marshes. ‘It’s just a big sponge.” Several weeks after the President embraces coastal offshore drilling, reversing a notable campaign pledge — 11 dimensional chess! — the Fates conspire to remind us all why this might not be a very good idea. Along with the 11 missing (and presumed dead) workers, “Secretary of State Hillary Rodham Clinton suggested that cleanup efforts could end up costing billions of dollars.“

Well, I say “the Fates,” but it sounds like Halliburton may have royally screwed up also. But, hey, maybe they’ll acquire another no-bid clean-up contract for their troubles. And speaking of our old friends on the right, it seems the “Drill Baby Drill!” camp has gone mysteriously silent…for now. [Image via Boston’s Big Picture.]

Update: “The problem with the April 20 spill is that it isn’t really a spill: It’s a gush, like an underwater oil volcano. A hot column of oil and gas is spurting into freezing, black waters nearly a mile down, where the pressure nears a ton per inch, impossible for divers to endure. Experts call it a continuous, round-the-clock calamity, unlike a leaking tanker, which might empty in hours or days.” It’s even worse than it sounds, and that’s assuming the wellhead isn’t lost. [Track the spill here.]

Bank to Basics.

“The big U.S. banks were the source of the global financial crisis, in part because their bigness and their practices were copied by major banks around the world. What happens in this reform effort is being watched avidly in many countries, because it will say much about how global finance is to be conducted. What is often missing in these discussions are the assumptions people make about banking and its role in a modern economy. We should begin therefore with some first principles.“

As the manifestly fradulent behavior by Goldman Sachs of late comes to full light — one among many, it seems — Numerian of The Agonist goes back to basics to make a case for strong banking reform. “The very first lesson we should learn from this crisis, which we thought this nation learned in the 1930s, is never again…The second lesson we should learn from this crisis is that we should not as a nation have to learn these lessons over and over again every 80 years. Something has to be done to make the legislative changes this time stick.”

Hudson Hawks (Lehman’s Garbage).

“‘How can anyone — regulators, investors or anyone — understand what’s in these financial statements if they have to dig 15 layers deep to find these kinds of interlocking relationships and these kinds of transactions?’ said Francine McKenna, an accounting consultant who has examined the financial crisis on her blog, re: The Auditors. “‘Everybody’s talking about preventing the next crisis, but they can’t prevent the next crisis if they don’t understand all these incestuous relationships.’“

The NYT delves into the sordid story of Hudson Castle, a.k.a. Lehman Brothers’ alter-ego, which they used to squirrel away shady investments. (This shell game didn’t even make the recent Lehman report, which apparently found enough “materially misleading” behavior to warrant criminal charges against Lehman’s leadership.)

Checks, Lies, and Audiotape.

[Ugh. It seems corporate ne’er-do-wells at Archer Daniels Midland conspired to erase this whole review just as I pressed publish. Here we go again…]

Give Steven Soderbergh credit: He’s astonishingly prolific — This is his second film of the year, after The Girlfriend Experience. He’s as at home in the arthouse (Sex, Lies, & Videotape; Kafka) as he is in the multiplex (Oceans 11, 12, 13.) He’s clearly animated by an interest in politics and a strong social conscience (Traffic, K Street, Erin Brockovich, Che 1 & 2.) When he’s on, he’s really on. (The Limey, Out of Sight.) And he’s not afraid to take stylistic risks to see what comes of them. (Solaris, Full Frontal, Bubble.)

The Informant!, a strange embellishment on the real-life story of whistleblower Mark Whitacre and the ADM scandals, shares many of these Soderberghian qualities. A merging of sorts of his indie and mainstream bodies of work, The Informant! also isn’t afraid to go out on a limb and try new things. But alas, partly because of those risks, the film doesn’t really hang together, and feels more like an experiment than an entertainment. It’s not a bad movie by any means, but it sadly never really lives up to the Coenesque promise of that exclamation mark in the title. I’d say, Netflix it.

On the interesting side, Soderbergh has dolloped everything in this movie with a sickly, buttery orange-yellow sheen, as if this entire ADM-run universe has been dipped and slathered in high-fructose corn syrup. But other stylistic ventures go less well. Matt Damon’s Whitacre is saddled with an in-head voiceover — we hear what he’s thinking — that pays considerable dividends in the final act, but often results in a lot of pointless meandering on the way there. (Like all of us, Whitacre’s mind tends to wander, and he tends to go about porsches, birds, and sundry other randomness at various times.) And, in the Big Mistake department, Soderbergh has farmed out the score to 70’s maestro Marvin Hamlisch, and the incessantly perky, bells-and-horns retro sound he’s come up with feels both tonally off and is consistently distracting. It is, in a word, corny.

The thing is, it’s not entirely clear The Informant! even needed all this flair. As the film begins, Mark Whitacre (Damon) rhapsodizes to his son about the many splendiferous virtues of corn — it’s in everything, it binds us, surrounds us, permeates us. And putting it there is ADM, “Supermarket to the World,” where Whitacre works as a biochemist and the youngest vice-president in the company’s history. Life is good, profits are made, the corn flows. But the view from the top gets shaken up a bit when some Japanese competitors of ADM ostensibly try to extort the company using a lysine-eating virus. And when a friendly FBI agent (Scott Bakula) arrives on the scene to investigate this corporate crime, Whitacre — propelled by his wife (Melanie Lynskey of Heavenly Creatures) into a burst of conscience — furtively tells him of even more sordid goings-on in the ADM empire: price-fixing. Soon, with Whitacre as their Inside Man, the FBI are on the case, trying to unravel this criminal corporate conspiracy and get ADM’s Masters of the Universe to compromise themselves on tape. One big problem, tho’: Whitacre. To their dismay, the Feds soon discover that their mole — who learned everything he needed to know about espionage from Michael Crichton movies — is not only a risky asset, but a compulsive liar, one that’s been keeping some very big cards close to the vest. Sometimes, it’s not even clear if that boy is right in the head.

To play Whitacre, Matt Damon has gone through a pretty substantial physical transformation here. He’s gained thirty pounds of paunch and topped it off with a Ned Flanders moustache and a bad Shatner hairpiece. (Not that I’d advocate that he — or anybody — get on the Christian Bale method-actor binge-and-purge bandwagon, but he probably should’ve done something similar to make Robert DeNiro’s The Good Shepherd even remotely plausible.) Even notwithstanding the corn-fed “young John Bolton” look he’s taken on, however, this part suits Damon. His inherent likability dovetails nicely with the congenial aw-shucks Midwestern blandness that Whitacre uses both as a shield and a key weapon in his arsenal of misdirection.

Damon aside, one of the minor pleasures of The Informant! is getting to see a bevy of character actors play against type. (The exception being Bakula, who once again is the still, calm center of the world. Then again, few do fundamentally decent as well as Quantum Leap‘s Sam Beckett.) Joel McHale of Talk Soup — soon, no doubt, to be Joel McHale of Community — is both deadly serious and believably earnest as Bakula’s partner. The Kurgan, a.k.a. Clancy Brown, exudes a ruthless professional mien as ADM’s top corporate lawyer — It’s his intelligence, rather than his bulk, that is sinister and frightening this time. Funnyman Patton Oswalt shows up in the later-going as an FBI accountant and plays it laudably straight and dull. And, perhaps most surprising, Buster Bluth (Tony Hale) also shows up in the third act and manages to come off as hypercompetent. (No small feat — every time he appeared on screen, my brain still went “Hey brother!“)

This, I think, speaks to yet another of Soderbergh’s strengths as a director — he’s clearly good with actors, and gives them the freedom to take the same types of risks that he does. The Informant! never really coheres, true, but I’d much rather see a talented director like Soderbergh continue to stretch himself and experiment, rather than bask in his safe, tried-and-tested wheelhouse. In the end, The Informant! probably counts as an amiable misfire, but those will happen. Stil, so long as Soderbergh keeps making movies, I’ll likely keep watching them…perhaps with some ADM-enhanced popcorn on hand.

Gale in a Teapot (Dome).

“The criminal investigation centers on the Interior Department’s 2006 decision to award three lucrative oil shale leases on federal land in Colorado to a Shell subsidiary. Over the years it would take to extract the oil, according to calculations from Shell and a Rand Corp. expert, the deal could net the company hundreds of billions of dollars.”

Paging Albert Fall: Former Dubya Interior Secretary Gale Norton, whose office was heavily implicated in the Abramoff scandals, is now facing a Justice Department inquiry into a sweetheart deal with Big Oil. “The investigation’s main focus is whether Norton violated a law that prohibits federal employees from discussing employment with a company if they are involved in dealings with the government that could benefit the firm, law enforcement and Interior officials said.“

Mr. Wendell.

“With this history, you can rest assured that the insurance industry is up to the same dirty tricks, using the same devious PR practices it has used for many years, to kill reform this year, or even better, to shape it so that it benefits insurance companies and their Wall Street investors far more than average Americans.” Former head of corporate communications at CIGNA, Wendell Potter, the health insurance industry equivalent of Russell Crowe in The Insider, explains in Salon what his former employers are up to, and why our republic appears to be in a spot of trouble:

“During my 20 years in corporate communications and public affairs, I participated in the steady growth and influence of largely invisible persuasion — and at a time when newsrooms are shrinking and investigative journalism seems to be vanishing. The number of PR people long ago surpassed the number of working journalists in this country…The clear winners as this shift occurs are big, rich corporations and other special interests. The losers are average Americans, most of whom are completely unaware how their thoughts and actions are being manipulated to achieve corporate goals on Capitol Hill.“

Hedge of No Return.

“But while many stakeholders made sacrifices, some did not. In particular, a group of investment firms and hedge funds that hoped to hold out for a taxpayer-funded bailout. I don’t stand with them. I stand with Chrysler’s employees, management and suppliers. I don’t with stand with those who held out when everybody else made sacrifices.” President Obama announces that Chrysler will file for bankruptcy, and lays the blame squarely at the feet of hedge funds who rejected an 11th-hour deal to save the company, apparently in the hopes of garnering more bailout cash.

The hedge funds in question have fired back, of course. Apparently, they’re all for the “rule of law” and upholding our “world-leading bankruptcy code.” I’d probably be more inclined to take them seriously on these matters if they weren’t also trying to spike regulation of their industry that is long overdue. At it is, i’m thinking profit is more of a motivator here than principled civil disobedience.

At any rate, I think Salon‘s Andrew Leonard is exactly right about where public opinion will come down on this one. Says one observer (cited by Leonard) of what happened today: “The banksters are eagerly, shamelessly, and openly harvesting their pound of flesh from financially stressed average taxpayers, and setting off a chain reaction in the auto industry which has the very real risk of creating even larger scale unemployment than the economy already faces. It’s reckless, utterly irresponsible, over-the-top greed.” From my admittedly limited vantage, that sounds like a plausible reading.