US Newspapers to Oppose Market Reporting Proposals

26 November 2002

Proposals by the New York Stock Exchange to corral the quotation of analysts’ views and opinions by newspaper reporters have proved unpopular with US media bodies.

Among a range of suggestions drawn up in light of recent corporate misdeeds, the NYSE has asked market regulator the Securities & Exchange Commission to require papers to publish disclaimers from analysts or bankers quoted in articles. These would detail any connection between the sources and the companies on which they are commenting.

Although TV interviews have been bound by a similar rule since July, newspaper bodies argue that their titles have space restrictions broadcast media don’t.

“We have got to take a look at the consequences of this,” declared Charles Jaffe, president of the Society of American Business Editors and Writers. He added that he was not opposed to the idea in principle, but making it law was like “trying to bludgeon us into doing what we should be doing anyway.”

Data sourced from: Financial Times; additional content by WARC staff