How the SEC (And Media) Failed Abysmally

The New York Times today has a blow-by-blow account of how the SEC knuckled under to pressure from the major investment banks and threw capital requirements out the window -- planting the seeds for the ongoing financial meltdown. An unanswered question, only briefly dealt with in the article, is this: where was the financial press?

CJR Audit asks that same question: "Where was this story years ago?" The answer is "right in front of us." After all, the Times article was based on the public record, including open meetings of the commission that were not covered by the media.

A pivotal SEC meeting, the Times reports, "was sparsely attended. None of the major media outlets, including The New York Times, covered it."

In Wall Street Versus America I lament the media's coverage of the SEC, and it's sad to be proven so dramatically right.

The financial press, I think, needs to correct its neglect now, by giving the SEC's actions in this crisis critical scrutiny. With some exceptions, that is just not happening.

© 2008 Gary Weiss. All rights reserved.