NEW YORK CITY (dpa-AFX) - The News Corp. (NWS, NWSA) phone-hacking scandal in the U.K. has taken its toll on Scotland Yard, with its head Metropolitan Police Commissioner Sir Paul Stephenson resigning from his position on Sunday. The resignation comes in the wake of allegations of the London Metropolitan Police having links with News International journalists at a senior level, and accepting bribes.
Shares of News Corp. are currently trading down nearly 7 percent, at a new two-year low, on the Australian Securities Exchange on Monday following the arrest and bail of the recently resigned News International chief executive Rebekah Brooks.
The allegations against the London Metropolitan Police came up after revelations by a former News of the World deputy editor, Neil Wallis, who was arrested in connection with Operation Weeting last week. Stephenson, who was Britain's senior most police officer, is charged of hiring Wallis as a consultant between 2009 and 2010.
'I do not occupy a position in the world of journalism; I had no knowledge of the extent of this disgraceful practice and the repugnant nature of the selection of victims that is now emerging; nor of its apparent reach into senior levels. I saw senior figures from News International providing evidence that the misbehaviour was confined to a rogue few and not known about at the top,' Stephenson said in a statement.
The Metropolitan Police is also charged of not doing enough to investigate hacking charges that emerged way back in 2005. An investigation launched in 2006 was also hushed up.
Meanwhile, Brooks was arrested by appointment on Sunday by police investigating phone hacking and bribery charges at its 168-year old tabloid 'News of the World'. After being held for 12 hours, Brooks was released on bail at midnight after she denied any knowledge of the phone hacking.
Brooks was editor of News of the World at the time the phone of a 13-year-old murdered schoolgirl was allegedly hacked. Later, it emerged that celebrities, politicians and other crime victims may also have been targeted.
Brooks began her journalism career in 1988 as a low-ranking assistant at a now-defunct U.K. tabloid. She became the News of the World's editor in 2000 and later the first female editor of the Sun in 2003.
The phone-hacking scandal has triggered an outrage in Britain and led to the recent closure of tabloid 'News of the World'. It has exposed the unholy nexus between the police, press and political leaders.
The alleged scandal also forced News Corp. to withdraw its bid to acquire the remaining 60.1% percent stake in satellite broadcaster British Sky Broadcasting Group Plc (BSYBY.PK, BSY.L) it does already not own.
Media tycoon Rupert Murdoch's News Corp. was under tremendous pressure in Britain over the hacking scandal, which has prompted wide-spread calls for News Corp. to drop the bid, including from British Prime Minister David Cameron.
Meanwhile, Murdoch, his son James Murdoch, who leads the international operations, and Brooks will appear before the Select Committee in Parliament on July 19 to give evidence on developments relating to the hacking, following up on an earlier report by its predecessor committee.
NWS closed Friday's regular trading session at $16.09, up $0.10 or 0.63 percent on a volume of 8.85 million shares.
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