Showing posts with label Financial reporting. Show all posts
Showing posts with label Financial reporting. Show all posts

Monday, December 29, 2008

One of the many reasons for the problems in Financial Reporting: conflicts of legal interest



Guardian editor Alan Rusbridger in the New York Review of Books. He's writing about a legal case between The Guardian and Tesco, but the wider implications are there for all, bloggers, lawyers and financial reporters. This is a lot closer to a journalistic reality than much of this year's "missed the credit crunch" hand-wringing.

This sort of financial journalism is notoriously difficult, expensive, and time-consuming. Few reporters have the training to disentangle and make coherent sense of the information publicly available from company accounts, annual reports, statutory filings, and corporate structures. The vast majority of reporters and editors—even those who specialize in business—would not know how to begin to unravel extremely complex corporate structures, which rely for their success on tax havens, partnerships, and tiers of associated financing and holding companies. A financial expert may understand public accounts, but be weak on corporate accounting. A corporate accounting specialist may know little or nothing about taxes. Effective analysis is complicated by the apparent legal impossibility—recognized by both academics and judges—of defining in a precise way the difference between tax avoidance and tax planning.

As we were to discover—if belatedly—the only route to total prepublication self-protection in these matters is to spend tens of thousands of dollars on tax, accountancy, and legal advice. Essentially, the only people qualified to produce wholly authoritative libel-proof assurance are the very people involved in constructing the strategies under scrutiny. They do not come cheap—and many of them have conflicts of interest. Some would give advice in private, but would not speak in public or in court.



And look, here's the Ghost of Christmas Future responding without an answer:

In my various scenarios for the future of news that relies more heavily on independent practitioners and networks, libel suits remain a huge question for which I can’t find an answer.

Says Ebenezer Jarvis.


Hopeful update from John Naughton.

There is, however, a chink of light in the gathering darkness. Rusbridger spells out in great detail the huge cost of retaining the specialist accounting and legal expertise needed to understand the Tesco transactions. But one rule of the new ecology is that there is wonderful expertise out there on the Net, and there might be ways of harnessing all that collective knowledge — rather as Linux harnessed the distributed skills of great programmers across the world to build a ferociously complex operating system; or as Larry Lessig and Charlie Nesson have crowdsourced the task of preparing legal briefs for pro bono cases.


Monday, November 17, 2008

I know it's a leak, but it's a good leak


The business editor of a national newspaper admitted: "I love the leaks. Some of the leaks are obviously done to protect insider shares or to manipulate the share price. There is no question in my mind about that..."



A tiny slice of Damian Tambini's What Is Financial Journalism For? Paper for POLIS/LSE.


Full download here.

How Did We Miss the Crash? Or Why Self-Flagellants Never Seem to Learn



Self-flagellation was in evidence all evening to the credit of the journalists present.



Paul Mason, the economics editor of BBC’s Newsnight, hosted a media mea culpa about the Financial Freefall at the Frontline Club on Thursday 7th November. Watch it here. In attendance were: Gillian Tett of the Financial Times, Michael Blastland, a freelance writer, Paul Lashmar, and Ann Pettifor...

...I urged editors not to patronise their readers. People are hungry for a conceptual understanding of economics. Economists I argued were like those tourists on Phuket Beach. Only they were using complex mathematical modelling to measure perturbations on the surface of the water, instead of trying to understand the movement of tectonic plates beneath the waves…



From the Debtonation blog by Ann Pettifor. Pettifor is a political economist and author of 'The Coming First World Debt Crisis' (Palgrave, 2006). This morning at the What is Financial Journalism For? seminar at the LSE she said, quite clearly: "I've lost trust in journalists." She goes to other places for her news. Where, of course, would be the scoop. In the meantime where should we go? How can we trust again? Here is the problem: Pettifor is trustworthy, she predicted this horrible mess, and published a book about it: and she doesn't trust in journalism. How can we?


I like Pettifor's tectonic plates...they fit well with the Rafts of Medusa that are so many newspaper websites.




Tuesday, October 21, 2008

Who Will Play Robert Peston in the Movie?


Members of the public, LSE staff and alumni can request one ticket via the online ticket request form which will be live on this weblisting from 10.00am on Friday 7 November.

Above: the instructions for getting (one, and one only) ticket for Robert Peston's "Who runs Britain?" lecture on Monday 17th of November at the LSE.