BMI’s Gainor: ‘Gross Mismanagement’ in Network Coverage of Fannie/Freddie

The broadcast networks exhibited gross mismanagement in their coverage of Fannie Mae and Freddie Mac, the government-sponsored mortgage powerhouses now in need of a $25-billion government rescue.

"It's partially a bias and partially just sort of gross mismanagement on their part," Business & Media Institute Vice President Dan Gainor said on CBN's "Newswatch" July 30. "All they had to do was pick up a Wall Street Journal. You know people at the network news shows read the Wall Street Journal at least sometimes. The Journal's been on this case since February 2002 when they had a piece headline, ‘Fannie Mae Enron?'"

The networks - ABC, CBS and NBC - ignored six years of concerns about the two companies' management, Gainor wrote July 28.

"The combination of stock losses, government fines and proposed bailout comes close to $150 billion," he wrote. "It's a huge story largely ignored by network news until a taxpayer bailout was almost guaranteed."

But the networks were more interested in attacking private companies with Enron comparisons than likening Fannie and Freddie to the infamous corporate debacle.

"But you look at the network news and what they've been doing is making extensive comparisons still to Enron," Gainor told "Newswatch" anchor Lee Webb. "Even up through June this year they talked more about Enron on ABC, CBS and NBC than they did about Fannie Mae and Freddie Mac."

Gainor also criticized the media's failure to give recent drops in oil prices the same coverage given to increases in the past.

"Unfortunately what's happened is when you have a run-up in oil or gasoline prices the networks do a big job, they hype the price increase," he said. "Well oil has dropped, at least prior to today, more than $20-some a barrel. That should've generated tons of coverage 'cause it has a huge economic impact, and all of that happened - amazingly - right after the president made his push for drilling offshore."