Great newspaperman? See, let The Audit explain something: You don’t get to be that by owning a lot of newspapers. If that were true, whoever owned the Thomson chain would be great, and whoever heard of them? Owning several dozen Fond du Lac Reporters and Guelph Monitors just doesn’t get it done. Neither will owning a hundred New York Posts and Sunday Tasmanians.
No, great newspaper men and women got that way because they sensed a broader purpose to the enterprise and built a culture based on those beliefs, one mundane decision at a time. And when the key historical moment arrived—New York Times v. Sullivan, Watergate, the Pentagon Papers, right now—they rose to the occasion. Those owners had a sense of mission, and they were willing to bet the company on it. That’s the difference between Katharine Graham and Rupert Murdoch. She doesn’t need a biographer to tell everyone she was great.
But let’s be clear: News Corp. took over the paper at a low ebb. Mediocre journalism—passionless, unimaginative, overly stylized, formulaic, timid, dull, rote—all too routinely occupied the Journal’s famous page one long before Murdoch and Thomson ever arrived. Indeed, the journalistic torpor cleared the way for News Corp. When Murdoch and Thomson arrived, they openly questioned, even mocked, what Thomson has called the staff’s “fetishization” of the Journal’s page one and long-form journalism. But how would they know what they were missing?
And in fairness to editorial management, the crisis could not have come at a worse time. Murdoch made his unsolicited bid for the Journal’s late, not-great parent, Dow Jones & Co., in the spring of 2007, catching its controlling shareholders, the feckless and unworthy Bancroft family, with their jodhpurs down, just as the crisis was unfurling. It was a full year before Murdoch had won the paper, jettisoned its not-quite-flexible-enough top editor in clear breach of signed agreements, and installed Thomson, a former Financial Times editor, to run the show.
New management came in intent on shaking up the culture, and a period of experimentation was inevitable and even desirable. It’s too bad it had to come during this past year.
Alas, News Corp.’s innovations have gone in precisely the wrong direction. Attempting to become a new New York Times has left the Journal neither fish nor fowl. And was this really the year to shift emphasis away from business news? Misguided attempts to make the Journal “newsier” has just served to elevate commodity-type business stories to multi-column headlines on page one, effectively burying the occasional gems that are being done and adding to the impression of aimlessness. Dismantling the paper’s page-one operation has cost the paper its elegance and writing advantage.
And the Journal’s white-hot pursuit of scoops is also a turn toward insiderism. Scoops are valuable—if you’re a trader. For the rest of us, not so much. But this debate was always a false choice. The Journal has always won scoops. Pushing too hard just leads to scoops that turn out to be wrong, as when the Journal revealed that Citigroup was considering firing its chairman and later splitting up the company. Both those stories were a month ago.
When it comes to Citigroup, we don’t need scoops. We need somebody to probe how it led us all here. Did you know that in 2000, nearly three of four Citi mortgages were made by a subprime unit? I didn’t think so.
Many have remarked, and I predicted, that the Journal was being made to resemble the FT. The FT is a fine little paper, just like Britain and Australia are fine little countries. But the FT’s newsgathering operation in this crisis has been irrelevant. It effectively has no investigative capability. Why, if you are The Wall Street Journal, would you want to imitate it?
Let’s take a look at the record. And yes, this will be highly selective, but I’m going to try to fairly reflect the ocean of material these outlets produce.
On September 27, the Times’s Gretchen Morgenson published a story that hit at the heart of the AIG bailout by exploring who benefited. Answer: Goldman Sachs, among others, which would gain if AIG could meet its obligations and lose if it couldn’t. Morgenson also pried loose the fact that Goldman chief executive Lloyd Blankfein, successor to the current treasury secretary, met with Fed officials on September 15, the day of the Lehman bankruptcy and a day before AIG was bailed out.
Although it was not widely known, Goldman, a Wall Street stalwart that had seemed immune to its rivals’ woes, was A.I.G.’s largest trading partner, according to six people close to the insurer who requested anonymity because of confidentiality agreements. A collapse of the insurer threatened to leave a hole of as much as $20 billion in Goldman’s side, several of these people said.
This story prompted strenuous denials from Goldman that it had any material interest in AIG’s fate, disputes that reached even The Audit. The Times was forced to correct an error that put Blankfein and Treasury’s Hank Paulson in the same September 15 meeting at which AIG’s fate was decided. Goldman, however, was forced to acknowledge that current and former Goldman CEOs did attend other meetings at the Fed that weekend, and that Blankfein was the only Wall Street CEO at the AIG meeting.
Point being, the Times story set the agenda for all subsequent coverage of AIG. That’s precisely the kind of journalistic courage that readers all too often take for granted.





Thank you for this.
Posted by Josh Young on Thu 25 Dec 2008 at 04:21 AM
What a brilliant piece! Not only did I learn about standards of exemplary journalism, I also learned about our current economic crisis. Great review.
Posted by Yigal on Sat 27 Dec 2008 at 08:27 AM
Smart piece. I, too, agree that in its rush to be breezier/faster/bigger, the WSJ has abandoned those qualities that made it different - hence attractive - to that affluent readership that NEEDED to have the paper every day. These days, WSJ informs, but does not educate. It reports, but does not enlighten. It offers information, but has little insight. Time was the Journal told you what happened behind the scenes or instructed you on really interesting developments in different industries. Now all it does is try to spark circulation gains by running alarmist headlines on its front page and short articles so bereft of data that a glance at the headlines is all one needs to know what's going to be communicated. I feel like it's another journalism layoff notice: The WSJ has left its position and will not be replaced. In its stead is a publication that is most definitely not a must read in any circle.
Posted by snout on Tue 30 Dec 2008 at 01:36 PM
I agree with snout. The WSJ has become so thin on relevant information that I've decided to stop getting the print product. When a company cuts back on quality and jacks up the price, I see no reason to keep giving them my hard-earned dollars. I can buy USA Today for $1 and get more information on sports and entertainment. It's a shame that no big media outlet is covering the business sector with vigor on a day-in day-out basis
Posted by argybargy on Tue 30 Dec 2008 at 03:02 PM
Strong review. Very comprehensive, though I still say the whole gang--NYT, WaPo, WSJ & everyone--should have been telling us derivatives were dangerous 10 years ago. Also, I think you mean 1100 reporters at the NYT--not 110? and the Ferrari Enzo is $1.2 million, not $1.2.
Posted by ed ericson on Wed 31 Dec 2008 at 06:37 PM
"The FT is a fine little paper, just like Britain and Australia are fine little countries. But the FT’s newsgathering operation in this crisis has been irrelevant. It effectively has no investigative capability."
Whoa! Let's put aside the snide remark about Britain and Australia, and concentrate on the journalism here. Yes, Bloomberg has done a great job. But for those wanting to understand the crisis, the FT has been the only newspaper to read. American publications can publish all the "narratives" they want, but a key element of journalism is making sense of apparently random events through thought-provoking analysis. The FT has done this in exemplary fashion. Irrelevant? No. Irreplaceable - absolutely.
Posted by paul abrahams on Mon 12 Jan 2009 at 10:20 PM
Isn't this the same Paul Abrahams who worked (or still does?) for the FT. Typical of British journalism to fail to divulge that sort of information
Posted by handsby shbanlina on Fri 16 Jan 2009 at 01:06 PM
ha ha ha WSJ 2007 on the skids, or in them.
Rupert Murdoch has struck a deal to acquire The Wall Street Journal and its parent company, Dow Jones & Co.
Merrill Lynch was hired by the Bancroft family's chief trustee to evaluate the Murdoch bid, but it's also part of a banking syndicate that agreed to lend News Corp. $2.25 billion in May.
Posted by paul short on Fri 6 Mar 2009 at 11:49 AM