Categories: OLD Media Moves

The point of reading business news

Rocky Mountain News business editor Rob Reuteman, who is a SABEW board member, has a nice round-up of the ethical discussion surrounding using short sellers as sources from last weekend’s Society of American Business Editors and Writers’ annual conference in his Saturday column.

Reuteman’s analysis is that SEC Chairman Christopher Cox tried to suck up to business journalists during his speech and later presentation. But he also noted that there are ethical considerations when using short sellers.

This whole issue of business journalists using short sellers as anonymous sources for negative information about companies has come to the forefront of the discussion in the wake of the SEC issuing subpoenas to business journalists, including MarketWatch’s Herb Greenberg, as part of an investigation into some hedge funds, to determine whether such investors were manipulating the market. Some people have criticized the reporters for using such sources, although they don’t seem to criticize reporters when they use sources who are bullish about the stocks they’re writing about.

Wrote Reuteman, “At issue, of course, is the ‘dilemma of the evil but truthful source,’ said Ed Wasserman, a professor of journalism ethics at Washington and Lee University, who spoke about the Overstock case at a separate panel on ethics. ‘They tip you, hoping they will make money off something you publish, and their gain will be someone else’s loss.’

“Panel moderator Mike Kandel, founding financial editor at CNN, said, ‘Everyone has an angle. There are very few disinterested observers who know what’s going on. Let readers decide.’

“Panelist Steve Andreder, a former financial columnist at Barron’s, said, ‘Fraud is only detectable in two ways. Either someone tells you about it or you get lucky.'”

Read more here.

Recent Posts

Dynamo hires former Business Insider executive editor Harrington

Former Business Insider executive editor Rebecca Harrington has been hired by Dynamo to be its…

21 hours ago

Bloomberg TV hires Kerubo as desk producer

Bloomberg Television has hired Brenda Kerubo as a desk producer in London. She will be covering Europe's…

21 hours ago

Jittery CNBC staff reassured by new boss

In a meeting at CNBC headquarters Thursday afternoon, incoming boss Mark Lazarus presented a bullish…

21 hours ago

Making business news accessible to a wider audience

Ritika Gupta, the BBC's North American business correspondent, was interviewed by Global Woman magazine about…

22 hours ago

Rest of World hires Lo as China reporter

Rest of World has hired Kinling Lo as a China reporter. Lo was previously a…

22 hours ago

Bloomberg rises to No. 7 biz news website

Bloomberg News saw strong unique visitor growth to its website in October, passing Fox Business…

22 hours ago