TheStreet.com media critic Marek Fuchs takes issue with reporting at Forbes and the New York Times that ignores or plays down the risk that Merrill Lynch has kept by financing a deal to take $11 billion of risky investments off its books.
Fuchs writes, “And, as happens when you don’t let your foot get caught on the details of a deal, a false conclusion came next, set out happily in the very next line:
‘John Thain, Merrill’s chief executive officer, appears to be doing everything he can to wipe the slate clean for the company.’
“Yes, he’s wiping the slate clean … by financing the sale of the bucket of slop and keeping much of the risk.
“While Forbes really struck out on behalf of investors, others — like The New York Times — at least touched upon the technicalities of the financing but failed to explain what it meant.”
Read more here.