Category: Journalism

Banker Rhodes Saved Murdoch from Bankruptcy

BankerToTheWorldBK.jpg

Source of book image: online version of the WSJ review quoted and cited below.

(p. A13) In “Banker to the World,” Mr. Rhodes tries to distil the “leadership lessons” he has learned from his remarkable career on the “front lines of global finance.”
. . .
. . . , Mr. Rhodes does succeed in hammering home three lessons that we need to take to heart if we are to have any chance of navigating the troubled waters that lie ahead. The first is that there is no substitute for the human touch: For all banking’s bells and whistles today, it is much the same business it was in Florentine Italy. Consider one of Mr. Rhodes’s greatest exploits: coordinating the rescue of Rupert Murdoch’s News Corp. from bankruptcy in 1990. Mr. Rhodes was worried that the collapse of Mr. Murdoch’s heavily-indebted media empire would tip the world economy back into recession. But he decided to bet on Mr. Murdoch only after the two had sat down for a three-hour heart-to-heart over dinner in New York.

For the full review, see:
ADRIAN WOOLDRIDGE. “BOOKSHELF; A Conspiracy of Hunches; A rare master of both the financial and political realms reports on what a half-century of experience taught him.” The Wall Street Journal (Weds., June 8, 2011): A15.
(Note: ellipsis added.)
(Note: online version of article had the date JULY 13, 2011.)

Book being reviewed:
Rhodes, William R. Banker to the World: Leadership Lessons from the Front Lines of Global Finance. New York: McGraw-Hill, 2011.

Press Routinely Puffs Up Phony Scares

(p. 107) In the winter of 2001, . . . , a New York Times page-one lead story declared in breathless phrasing that the White House had just “canceled” regulations limiting arsenic in drinking water; taking their leads from the Times, all national newscasts that night declared that arsenic protection had been “canceled.” The Times went on to editorialize that government actually wanted Americans to “drink poisoned water” because this would serve the sinister interests of corporations, though how the conspiracy would serve sinister corporate interests was not explained, since the arsenic in drinking water occurs naturally. Government poisoning your water–a report you don’t want to miss tonight!

Except that nothing had been canceled. The White House had held up a pending rule to make arsenic protection more strict; while the pending rule was reviewed, prior rules remained in effect. The Environmental Protection Agency continued regulating arsenic in drinking water during the entire period when such protection was supposedly “canceled.” Then, in November 2001, the White House ended its review and put the much stricter rule into force. The New York Times did not play this as (p. 108) a headline lead, where the original scare story had been; enactment of the strict rule was buried in a small box on page A18. Network newscasts that had presented a shocking scandal of “canceled arsenic protection” as their big story also said little or nothing when instead stronger rules went into effect. This sort of puffing up of a phony scare, followed by studious ignoring of subsequent events that deflate the scare, is not rare. It is standard operating procedure in many quarters of journalism, including at the top.

Source:
Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.
(Note: ellipsis added; italics in original.)