Wednesday, December 7, 2011

If Bloomberg Had Done it Right, They Could Have Been Heroes

Bloomberg News Responds to Bernanke Criticism

If the initial coverage had been written with the same professionalism and objectivity as their defense, Bloomberg would not be forced to defend it. The articles, especially “Secret Fed Loans Gave Banks $13 Billion,” read like poorly written editorials rather than serious reporting. For an explanation, see: “Bloomberg Can Do Better”.

On Tom Keen’s midday surveillance today (12/07/11), Bloomberg’s Matthew Winkler defended Bloomberg’s accomplishment in getting the information . As pointed out in the posting cited above, there is no doubt Bloomberg provided a public service by forcing the issue. However, as Mr. Winkler pointed out, there is an important issue that needs to be addressed: When should detailed data on actions taken during a liquidity crisis be disclosed? Bloomberg’s coverage could have contributed to that discussion. Unfortunately, the editorial tone of their coverage probably discouraged serious consideration of timing.

Their defense is factually correct, but misrepresents the lack of objectivity of their coverage. Rather than go through their defense point-by-point (something anticipated fairly well in the initial posting), I only request that they reread their coverage and ask themselves one question: Can Bloomberg do better? I believe so, or I would not be writing this.

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