Stephen Engelberg from ProPublica offers some advice about covering a bank that is being investigated by authorities.
Engelberg writes, “To be fair, this is honest journalistic labor. I’ve done it as a reporter in Washington, and we’re doing a bit of it ourselves right now on several stories, from Wall Street to New Orleans. Without doubt, there are moments when the mere fact that there is an investigation is worth noting, particularly if the principal figure is a leading financial institution or a public official.
“But we should all be aware that this work is particularly subject to pitfalls. Stories about investigations often leave the impression that authorities are running full tilt at malefactors. And they often fail to answer basic questions. Are these investigations fishing expeditions? Pro forma reviews? The first steps toward significant charges?
“There are good reasons for the lack of clarity. First, the investigators themselves don’t always know where they’re going. Investigators also have little reason to telegraph what they’re doing to journalists, and they’re usually tight-lipped in the early phases of their inquiries. (Occasionally, prosecutors do provide information to the press in hopes of rattling their targets or pressuring people to cooperate. That’s more the exception than the rule.)
“Usually, reporters are left interviewing the witnesses, their lawyers and their various associates, from business partners to significant others. If a federal official asks someone on Wall Street pointed questions about a particular investment put together by a big bank, then a reporter might write a story saying officials have begun an investigation. Procedurally, such inquiries begin as ‘preliminary’ investigations. This could ultimately lead to an actual investigation that could eventually result in criminal charges. Or not.”
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