Reporting on Merrill Lynch deal fails to explain risk it's kept
TheStreet.com media critic Marek Fuchs takes issue with reporting at Forbes and the New York Times that ignores or plays down the risk that Merrill Lynch has kept by financing a deal to take $11 billion of risky investments off its books.
Fuchs writes, “And, as happens when you don’t let your foot get caught on the details of a deal, a false conclusion came next, set out happily in the very next line:
‘John Thain, Merrill’s chief executive officer, appears to be doing everything he can to wipe the slate clean for the company.’
“Yes, he’s wiping the slate clean … by financing the sale of the bucket of slop and keeping much of the risk.
“While Forbes really struck out on behalf of investors, others — like The New York Times — at least touched upon the technicalities of the financing but failed to explain what it meant.”
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