We have the best readers in all of finance. Yes, they have names like "MostOffensive," but they catch big ones for us now and then.
The reality is that the media can do far more damage far more quickly than short sellers ever will. Shall we call for them to face criminal charges for their poor judgment as well?
A front-page article on Thursday reported on discussions the investment bank Morgan Stanley has had with possible merger partners. It cited two people who were said to have been briefed on a conversation in which John J. Mack, chief executive of Morgan Stanley, had told Vikram S. Pandit, Citigroup's chief executive, that "we need a merger partner or we're not going to make it."
After the article appeared, Morgan Stanley vigorously denied that Mr. Mack had made the comment, as did Citigroup, which had declined to comment on Wednesday. The two people whom The Times cited now say that because they were not present during the discussions, they cannot confirm that Mr. Mack in fact made the statement. The Times should have asked Morgan Stanley for comment and should not have used the quotation without verifying that the two people had direct knowledge of any comments made by Mr. Mack.
Corrections [New York Times] (Via DealBreaker reader "MostOffensive")