All the News we want you to know

The Wall Street Journal was out this morning with an article covering a judge’s decision that J.P. Morgan was screwing its own client. That client happens to be a rather large investor in the New York Times, Carlos Slim.

In a ruling unveiled late last month in U.S. District Court in Manhattan, Judge Jed Rakoff said the New York bank structured the deal so it would have allowed a major competitor of Cablevisión to gain confidential information about the company, which is Mexico’s largest cable-television operator.

That competitor, Telmex Internacional SAB, is owned by Mexican billionaire Carlos Slim, who has been fighting off Cablevisión’s advances on the Telmex telephone monopoly. Cablevisión itself is a unit of Grupo Televisa SAB, Mexico’s largest media giant. The dispute amounts to one of the year’s first showdowns between two of the country’s most powerful companies.

[snip]

“J.P. Morgan has been our banker for more than 20 years,” said Alfonso de Angoitia, executive vice president of Grupo Televisa, the largest shareholder of Cablevisión, and the largest Spanish-language broadcaster. “We feel betrayed.”

So why isn’t the betrayal of a client by J.P. Morgan newsworthy to the New York Times? This guy says it’s because Slim is made to look like a chump for trusting Morgan, and neither he nor the paper he owns want that known. These days, the Times seems determined to print only what it is forced to print, weeks after real stories have become impossible for it to ignore longer. Hardly a model for cutting-edge reporting, I should think, but when editorial decisions are based on ideological and business justifications, not too surprising.

6 Comments

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6 responses to “All the News we want you to know

  1. Anonymous

    Many would argue Barry has made Jamie look like a chump donor….couldn’t happen to a finer Gulfstream commie

  2. Greenwich Ex-Pat

    Meh. There’s no honor amongst thieves, Slim should know that. What’s he gonna do about it? Morgan can and will outlast him. Or they’ll give him a piddling settlement. But they win, he loses, no matter what Rakoff says.

    His investment in the NYT? I’m making the backwards L on my forehead with thumb and forefinger.

  3. Greenwich Ex-Pat

    I’m curious, though, how long before one of these bankers gets popped by a swindled, seriously pissed off international client who doesn’t believe in using the legal system to settle a score? I mean, how stupid do you have to be not to consider that possibility?

  4. Old School Grump

    Rakoff has been a fed judge in the Southern District of NY for at least 30 years, and seen all manner of financial shenanigans. If he (and others like him, if there are any) can make enough rulings like this in the near term, maybe they will make a difference.

    Me, I believe the Commodity Futures Modernization Act (1999? 2000?) is the root of all evil in our recent economic unpleasantries. I don’t understand why this act isn’t addressed more explicitly in the non-financial press; it’s no harder to write about than most of the general press’ blather about CDSs and toxic MBSs, and it would provide a framework for understanding how things got out of hand (and may well get out of hand again).

    But here’s the problem: Oops, it makes EVERYONE look bad! Liberals AND conservatives, Republicans AND Democrats, Clinton AND Bush, the House AND the Senate, and of course the usual suspects (the investment bankers and their lobbyists). None of the players can spin it to their advantage; therefore it doesn’t get any traction in the general news.

    Too bad. If we the voters had a better understanding of the extent to which all our elected representatives were perfectly happy to be in bed together on so many of the issues that led to the financial disaster, maybe we could see through their absurd posturing and blustering and lefty-righty attempts at distraction, and throw them out, which most of them deserve.

  5. Greenwich Gal

    Ok Grump – what is the Commodities Futures Modernization Act? Splain…