For all I know, the tablet-only may indeed be a poor choice. But, remember, this was the newspaper Murdoch & Co. dreamed up from scratch, sparing no expense. And this is a company that owns almost 150 newspapers. Murdoch has long railed against/obsessed over alleged press elitism, especially among journalists. That drives his famous animus against The New York Times and was behind his desire to own The Wall Street Journal (major themes in both Michael Wolff’s and Sarah Ellison’s books). And here was his chance to show us what it’s all about.
To me, The Daily’s failure says a lot more about Murdoch’s banal vision of a newspaper than it does about a particular technology platform. A media scholar, seriously, should do a content analysis of The Daily, because that’s the purest expression you’ll get of what Murdoch thinks an ideal newspaper is supposed to be.
—Matt Stoller has a fun interview with Neil Barofsky, Simon Johnson’s (and my) choice for new Securities and Exchange Commission chief. While I wouldn’t hold my breath, reading Barofsky is an exercise in reimaging white-collar crime enforcement, which is another way of saying, reimagining the relationship between Wall Street and the government.
Here Barofsky talks about the need to revisit the longstanding, an often corrosive, practice of allowing big banks to settle fraud cases without admitting or denying wrongdoing:
I would want to have a real reexamination of the neither-admit-nor-deny settlement approach toward enforcement. And that goes to really a core question of the priorities of the agency and what it is they want to accomplish with their enforcement arm. One would assume that the neither-admit-nor-deny approach of settling cases, entering a settlement with financial penalties but not requiring the institution to acknowledge that it actually did something wrong — and really they haven’t gone after a lot of individuals for their role in these big financial problems in the big big banks — um, that’s going to likely generate higher cash value of settlements because they are more valuable to the institutions than ones in which they are acknowledging liability and therefore giving the basis for follow-on civil lawsuits from other entities. It is an approach where if your goal is to maximize returns for the agency and the victims in the form of restitution, it’s probably the right approach
If you come with a different approach, a different perspective, my perspective, an equally important if not more important goal is deterrence, and causing enough pain so that these types of behaviors don’t continue — so you don’t have these serial settlements of neither admit nor deny . And that’s not to say it doesn’t have any place — it may have some place — but it certainly feels like the overwhelming default is to do this. The reality is that for these institutions several hundred million dollars in penalties and fines is unlikely to change significantly their behavior as an effective deterrent, and it may be worth rolling the dice and trying some of these cases, and winning, and scaring them into doing settlements of admissions of liability to achieve a significant deterrent effect, so the ramifications are more significant than the bad behavior.
A eminently reasonable idea that no one in government is talking about.