Networks ignore Fannie Mae, Freddie Mac fiasco

Julia Seymour of the Business & Media Institute writes Wednesday that the television networks have all but ignored the multibillion dollar bailout of lenders Fannie Mae and Freddie Mac as a story even though in dollar terms it’s a much bigger deal than the Enron bankruptcy.

Seymour also notes that print media such as The Wall Street Journal have been writing about the problems at the struggling lenders for the past six years.

Seymour writes, “Since Jan. 1, 2008, only four network news stories have included any criticism of Fannie and Freddie. Even the flood of reports since July 8 (when concerns began to surface that the two organizations might have to raise more capital) has provided little historical context for the situation. Warnings about Fannie and Freddie have been issued by print media and economic experts at least since 2002.

“The NBC ‘Today’ show hinted at problems with the two government-sponsored companies on July 14 when Andrea Mitchell reported Sen. John McCain’s (R-Ariz.) reaction to a bailout:

“‘John McCain also says the survival of the mortgage giants is essential, despite some of their past practices,’ said Mitchell. Viewers were left to wonder what those ‘past practices’ could have been. Here are a few hints: billions of dollars in accounting scandals, stock prices that have plummeted, connections to prominent politicians and a high-risk portfolio.”

Read more here. Disclosure: I am on the advisory board of the Business & Media Institute.