NBC Found Global Crossing; CBS Buried Preference for Democrats; ABC Rued "Huge" Budget Cuts; Bill Clinton Still "Honest" to Rather
1) Global Crossing discovered. On Monday night NBC became
the first broadcast network to note the political parallels with Enron as
Lisa Myers pointed out how Terry McAuliffe and George H.W. Bush were early
investors. But unlike the Washington Times, she failed to report how most
of Global Crossingís money went to Democrats and that its founder
"was a White House guest at President Clinton's Millennium New Year's
Eve party, golfed with Mr. Clinton and pledged $1 million to the Clinton
2) In the midst of a story pushing campaign finance
reform, CBSís Bob Orr squeezed in a mention of how "Global Crossing
contributed nearly $3 million in the past four years, more than half of it
to Democrats." But, he added, "the largest contribution,
$31,000, went to Republican Senator John McCain."
3) ABC Carole Simpson anchor decried how states are being
"forced to make huge cuts in services." Ron Claiborne lamented
how the Governor of Massachusetts wants to eliminate a dental program,
leaving recipients "to bear the cost of a balanced budget." But
as Boston Globe columnist Jeff Jacoby pointed out, the Bay Stateís
Governor is proposing a $900 million budget hike.
4) Dan Rather reaffirmed to Don Imus that he stands by his
assessment last year to FNCís Bill OíReilly that Bill Clinton is
"an honest man." Rather stuck to his guns: "I think he is
an honest person....I think the fact that someone has told a lie, even a
big lie or maybe several big lies over a lifetime, does not mean that
they're an inherently dishonest person."
online, a Media Reality Check on the mediaís record of promoting
campaign finance reform. "Will Congress Reward Mediaís Advocacy?
Establishment Journalists Discarded Objectivity for Activism In Pushing
for Campaign Finance ĎReform.í" To read the report compiled by
the MRCís Rich Noyes, go to:
To view the two-page document as fax recipients
saw it, access the Adobe Acrobat PDF version: http://archive.mrc.org/realitycheck/2002/pdf/fax0211.pdf
Monday night NBC News became the first broadcast network to realize the
political parallels between the bankruptcies of Enron and of Global
Crossing, which also features accusations insiders who made out well while
the little guy suffered and that it hid losses. Both had Andersen as its
accountant. NBCís Lisa Myers noted: "Like Enron, Global Crossing
carefully cultivated its political connections. Democratic National
Chairman Terry McAuliffe turned a $100,000 investment into almost $18
million" and "former President Bush was given $80,000 worth of
shares for a speech, stock at one point worth $14 million."
Two weeks ago, on January 29, the day of the
State of the Union address, the CBS Evening News ran a full story on the
downfall of Global Crossing, but reporter Anthony Mason didnít utter a
syllable about the companyís political connections, including
McAuliffeís dealings with the company, even though they were detailed
that morning by the Washington Times. (Both CNNís Inside Politics and
FNCís Special Report with Brit Hume ran stories on Global Crossingís
ties to McAuliffe and Bush.)
The broadcast networks failed to show any
interest in the topic even though in a January 29 New York Times front
page story reporter Simon Romero offered a strong hint of larger political
ties, the very type of connections which journalists see as justification
for their focus on Enron: "The company had attracted many notable
business and political figures as investors, including Terry McAuliffe,
Chairman of the Democratic National Committee, who profited by selling
Global Crossing stock before it declined. Another early investor was
former President George Bush, who accepted stock in lieu of an $80,000 fee
for speaking to Global Crossing customers in Tokyo in 1999, although it is
not known whether Mr. Bush sold his stock."
(A February 9 story by Romero cited Global
Crossing founder Gary Winnick, but failed to mention his links to
President Clinton, on the golf course and off, and also ignored McAuliffe.
But Romero managed to again cite how "among the shareholders of
Global Crossing at one point was former President George Bush, who took an
$80,000 speaking fee in stock that at the peak was worth $14 million. It
is not known when, or if, he sold his position.")
A Monday Washington Times story outlined the
similarities between the two big downfalls, as reporter Frank Murray
detailed three points not touched by NBC: How most of Global Crossingís
money went to Democrats, Global Crossing founder Gary "Winnick was a
White House guest at President Clinton's Millennium New Year's Eve party,
golfed with Mr. Clinton and pledged $1 million to the Clinton
library," and the reorganization plan centers on Hutchison Whampoa,
believed to have ties to Chinaís communist regime. (See item #2 below
for how CBS broached the subject of donations favoring Democrats.)
An excerpt from Murrayís February 11 story:
Global Crossing -- the telecommunications company whose Jan. 28
bankruptcy court filing has been eclipsed by the growing battles over
Enron -- remains an enigma to the public even after joining Enron under
the FBI microscope.
While Global Crossing lacks the star power to rank higher on the
scandal scale, similarities are uncanny between two bankruptcy filings 57
days apart, with Enron ranked the largest-ever and Global in fourth place:
-- Both high-flying firms were politically hyperactive, with Enron more
heavily invested in Republican causes while Democrats dominate Global's
gift lists. Top brass at both firms had ready access to the lawmakers they
-- Each stands accused by a former top executive of accounting tactics
that inflated its apparent worth on balance sheets and produced enormous
profits for shareholders who somehow knew just when to sell.
-- The corporate auditor that vouched for bookkeeping at both firms was
Arthur Andersen LLP, which fired or demoted more than a half-dozen senior
partners after the Enron debacle but says accusations about Global were
hidden from them until Jan. 29.
-- Employee 401(k) plans at both companies blocked trading while
changing administrators, a freeze during which employees could not dispose
of remaining shares shortly before they became worthless when companies
sought bankruptcy-court protection....
But except in stockbrokers' offices, the words "Global
Crossing" still draw blank stares because its grim news has largely
been relegated to financial pages; meanwhile, Enron has dominated Page One
and television like no story unrelated to the war on terrorism since
Despite obvious national-security concerns about control of Global
Crossing's 100,000-mile fiber-optic network on which government offices --
including the U.S. Navy and British Foreign Office -- rely for sensitive
communications, Congress shows no interest....
The dearth of reporting by TV news operations -- and virtual blackout
of Global's political connections to President Clinton, Democratic
National Committee Chairman Terry McAuliffe and former President George
Bush -- continued over the weekend even after separate probes were started
Friday by the Securities and Exchange Commission and the FBI....
The core of Global's plan involves two Asian suitors to invest $750
million in a bargain deal -- Hutchison Whampoa Ltd. of Hong Kong, and
Singapore Technologies Telemedia Pte. Ltd. Both have long been active in
joint ventures with Global Crossing, and the separate Asia Global
Crossing, which is not part of the bankruptcy....
Hutchison Whampoa's role troubles Rep. Dana Rohrabacher, California
Republican, because that firm is owned by billionaire Li Ka-shing, who has
close ties to China's communist government and whose companies comprise 15
percent of the entire value of Hong Kong's stock market. Before the bottom
dropped out, insiders sold some $1.3 billion in stock, with Global founder
Gary Winnick accounting for an estimated $800 million. Among the others is
Lodwrick Cook, retired ARCO chairman and longtime Republican financial
Mr. Winnick was a White House guest at President Clinton's Millennium
New Year's Eve party, golfed with Mr. Clinton and pledged $1 million to
the Clinton library. DNC spokeswoman Jennifer Palmieri said Mr. Winnick
fulfilled just $100,000 of his $1 million pledge, but she confirmed that
Mr. McAuliffe, the chief party fund-raiser in the Clinton years, did well
on his $100,000 investment in Global.
"He definitely made millions of dollars. He did very well. His
profit was clearly in the millions, but it was somewhere less than the $18
million that is reported," she said....
Global gave $3.6 million since its 1997 startup compared to $3.9
million for Enron in the same period. But Global outspent Enron in the
2000 election cycle, giving 55 percent of donations to Democrats, while
Enron gave 72 percent of its share to Republicans.
END of Excerpt
To read the entire article: http://www.washtimes.com/national/20020211-393691.htm
Tom Brokaw introduced the February 11 NBC
Nightly News story:
Washington, as Congress prepares to finally see former Enron CEO Ken Lay
tomorrow at a hearing, where he is expected to take the fifth and refuse
to answer questions, another huge bankruptcy is getting intense scrutiny.
The company is called Global Crossing, and it closely resembles Enron in
so many ways."
Myers explained, as transcribed by the MRCís
Brad Wilmouth: "Today a federal criminal investigation is
intensifying into why Global Crossing, a high flying telecommunications
company with swank offices in Beverly Hills, suddenly went bankrupt two
weeks ago, a collapse many see as eerily familiar to the debacle at
The Corporate Library: "The people at the top profited while the
employees and the investors suffered. There are problems with the
accounting and whether we can really believe in it, and there seem to be a
lot of political ties."
elaborated: "Like Enron, Global Crossing had a grand vision: Build a
fiberoptic network under the ocean linking 27 countries. Now a company
whistle-blower, whom NBC News has learned was contacted by the FBI last
week, alleges Global Crossing used misleading accounting to inflate
profits. He warned superiors in a five-page letter in August he was very
disturbed that investors and commercial bankers may have been
intentionally misled. The key question for the FBI: Were certain
transactions made simply to create phony profits?"
Colorado State University Center for Quality Financial Reporting:
"Did that lead to artificial inflation of stock prices in the market
place that ultimately led a lot of investors to lose a lot of money?"
"The companyís accountant? Andersen, also the auditor for Enron.
Andersen now says Global Crossing failed to inform it of key issues.
Though Global Crossing made almost no money, insiders pocketed staggering
amounts. Founder Gary Winnick sold shares worth $734 million before the
companyís collapse. Also like Enron, Global Crossing carefully
cultivated its political connections. Democratic National Chairman Terry
McAuliffe turned a $100,000 investment into almost $18 million. He says he
didnít benefit from inside information. Former President Bush was given
$80,000 worth of shares for a speech, stock at one point worth $14
million. Bush wonít say at what price he sold the stock. Who got hurt?
The little guys. Bill Goodness (sp?) lost his job and most of his 401
"We are just left basically holding the bag."
concluded: "So far, the company insists there is no wrongdoing. But,
as authorities broaden their investigation, investors are left to wonder
which high flying corporation will be next?"
Times story showed thereís a lot more for NBC to get into, but NBC is
way ahead of ABC and CBS in at least realizing that by the standards the
networks have applied to justify their focus on Enron, they must also tell
viewers about Global Crossing.
The Enron/Global Crossing coverage disparity
is the subject of MRC President L. Brent Bozellís February 8 column,
"Crossing Out Global Crossing." Go to:
Crossingís preference for Democrats buried by CBS, which focused again
on Enron and then stressed how a Republican was Global Crossingís
"The shame and taint of Enron is fueling
the apparent sudden revival of long-blocked legislation for serious
campaign finance reform. The House could vote on the bill Wednesday,"
Dan Rather announced Monday night before a story in which Bob Orr
asserted: "Some of the former Enron executives now stonewalling
Congress spent the Ď90s lining the pockets of their interrogators."
Orr listed Enron contributions to members of
both parties, insisting: "Enronís investments earned a favorable
regulatory climate until the company collapsed."
Near the end of his February 11 story,
however, Orr observed: "Enron is not the only bankrupt firm with big
political investments. Telecommunications upstart Global Crossing
contributed nearly $3 million in the past four years, more than half of it
to Democrats. But the largest contribution, $31,000, went to Republican
Senator John McCain, former Commerce Committee Chairman and a champion of
campaign finance reform."
concluded: "Despite their millions, neither company has any clout
left on Capitol Hill. Now the question is, will their high-profile
failures give backers of campaign finance reform enough political cover to
change a system awash in cash?"
An assumption that money in politics is a bad
government giveaway program is established itís impossible to reduce it
in any way without invoking the mediaís wrath as reporters deliver
emotional anecdotes, portraying recipients as helpless victims, without
any regard to the burden on taxpayers or whether the service was a
legitimate one for the government to provide.
The latest example: An ABC News look at what
World News Tonight/Sunday anchor Carole Simpson described as how states
are being "forced to make huge cuts in services." Reporter Ron
Claiborne lamented how, for instance, the Governor of Massachusetts wants
to eliminate a dental program and "one of the state's most popular
and innovative programs" -- anti-smoking ads. Concluding with the
case of a woman who would lose her government-provided dental service,
Claiborne bemoaned: "As states cut programs to save money, people
such as Ilena Vintresca may have to bear the cost of a balanced
But in whining about budget cuts ABC failed to
convey a very relevant fact: As Boston Globe columnist Jeff Jacoby pointed
out, the Bay Stateís Governor is proposing a $900 million overall budget
hike, spending growth which exceeds the inflation rate.
Simpson set up ABCís one-sided February 10
polemic, as tracked down by MRC analyst Jessica Anderson: "Across the
nation, states are facing $40 billion in deficits, an unprecedented
figure. That is posing serious problems for officials forced to make huge
cuts in services. Here's ABC's Ron Claiborne."
began with a victim: "Ilena Vintresca is unable to work because of a
rare kidney disease. With no income, she qualifies for free dental care
from the state, but that may change. The Governor of Massachusetts is
proposing to eliminate preventative dental care for poor adults like
Vintresca to save money."
Ilena Vintresca: "Without this insurance, I will be forced, or at a great
risk, of losing my teeth."
"Governor Jane Swift says the state's billion-dollar deficit has
forced her to make painful choices."
"We're having to prioritize, we're having to be creative, and in some
cases, we're having to be unpopular by making tough decisions."
"Unlike the federal government, every state except Vermont is
required by law to balance its budget, so states with budget deficits have
to raise taxes or cut spending or both. In Massachusetts that means
possibly cutting one of the state's most popular and innovative
anti-smoking ad: "Too many people have been hooked."
"An acclaimed anti-smoking campaign that is credited with reducing
cigarette smoking by 25 percent."
Campaign for Tobacco-Free Kids: "If she cuts this program by a
fraction of what she's proposing, much less by two-thirds, she will
devastate the program."
So what? How many other states spend money on
But itís not
only in Massachusetts that awful cuts may occur. Claiborne warned:
"Wisconsin, with a billion-dollar deficit, is considering ending all
assistance to local governments. The city of Beloit would be unable unable
to pay for such essential services as the police and fire
Beloit, Wisconsin, city manager: "The reality is you can't expect us
to deliver basic services with only $4.6 million for a community of 36,000
people. Do the math; it doesn't work."
Gee, maybe they could re-prioritize their
Claiborne moved West: "In California,
which has the nation's largest deficit, $12 billion, this free health
clinic in Burbank may be forced to close because of deep cuts in Medicaid
Dr. Elise Pomeranz: "A lot of them would not receive their routine care because
they have no transportation, and so what happens is they wait until they
are so sick that they have no alternative, and they end up in the
Without one second for the concerns of those
paying for all these wonderful "free" services, Claiborne
concluded: "It is a similar story across the country. As states cut
programs to save money, people such as Ilena Vintresca may have to bear
the cost of a balanced budget."
I donít have specifics about Wisconsin or
California, but I caught a Jeff Jacoby column in the January 27 Boston
Globe which undermines ABCís premise. An excerpt:
We interrupt the screaming and howling over Acting Governor Jane
Swift's drastically slashed state budget to bring you this timely fact:
The budget hasn't been slashed.
The budget hasn't even been trimmed. Or shaved. Or nicked.
The $23.5 billion spending plan proposed by Swift for fiscal 2003 would
increase spending by $900 million over the budget the Legislature very
belatedly passed last year. For all the talk of how "spare" and
"austere" her blueprint is, Swift is trying to push expenditures
up, not down. That's the outrage. Tax revenues have been dropping since
last summer, we are well into a recession, and Swift thinks the time has
come to spend even more?....
By any standard this side of the Socialist Workers Party, the public
sector in Massachusetts is large and well-fed. With a $23 billion budget,
it will continue to involve itself in everything from auto insurance to
manicurists to zoos. There was wailing last week because Swift's budget
didn't include free dental care for poor adults. Since when is free dental
care a function of the state? Where is it written that every conceivable
good idea must be effected by government and paid for with money withheld
from people's earnings?...
END of Excerpt
A good question, but donít expect many
reporters to take it up.
For Jacobyís column in full:
Dan Rather concedes Bill Clinton did lie, he re-affirmed last week to Don
Imus that he stands by his assessment last year to FNCís Bill OíReilly
that Clinton is "an honest man" because "I think you can be
an honest person and lie about any number of things." Last Thursday
morning, Rather stuck to his guns: "I think he is an honest
person....I think the fact that someone has told a lie, even a big lie or
maybe several big lies over a lifetime, does not mean that they're an
inherently dishonest person."
In a February 7 appearance by phone on the
Imus in the Morning radio show simulcast by MSNBC, which slipped by us but
which the MRCís Liz Swasey learned was reported by Newsmax.com, Imus
asked Rather about his trust in Bill Clintonís honesty.
Imus inquired, as taken down by MRC analyst
Ken Shepherd: "Bill OíReilly, whom I happen to like, by the way --
not that we donít chastise him on occasion -- has been making a lot out
of you telling him when you were on his show that you thought Bill Clinton
was an honest man. And I, itís not my job to defend you, you can defend
yourself but I did think and took away from that, thatís not exactly
what you meant. I mean, you didnít mean that he doesnít lie or
didnít lie he justó"
in: "No, I thought I made that plain and let me say right straight
out, I donít have any argument with Bill. Then I went on his program to
promote the book and you know, from his view, he chewed me up pretty well,
well heís entitled. I donít have any problem with that he was, in the
interview he was trying to get me to say that, you know, that I didn't
think Bill Clinton was an honest man."
Rather proceeded to repeat what he had said on
OíReillyís show: "Look, he lied. He lied but he shouldn't have
lied. He lied and tried to cover it up. My point to Bill, and I have no
apology for it, it's the rare person -- Bill may be that person -- but
it's the rare person who can say, you know, 'Never in my life have I ever
told a lie. Particularly, I've never told a lie when, you know, my whole
career might rest on it.'
"Now, there are plenty of people who have
argued with it, but I think the fact that someone has told a lie, even a
big lie or maybe several big lies over a lifetime, does not mean that
they're an inherently dishonest person. But, you know, this may mark me as
one of those people -- I believe in redemption and that Bill Clinton -- is
he an honest person? I think he is an honest person. Did he lie? Yes, he
lied, and on those occasions he was dishonest."
Rather then seemed to impugn conservatives as
he rued "them," complaining bout how "anybody who says
anything good about him [Bill Clinton] is gonna be castigated by
them." Rather also added insult to injury as he also maintained that
his reporting is "down the middle." Rather contended:
"A lot of
this is just dancing on the head of a pin. Well, I think we understand,
Imus, that, you know, people like O'Reilly, they are never gonna say
anything good about Bill Clinton. And anybody who says anything good about
him is gonna be castigated by them and maybe that's fair enough. My own
view is that, though I'm a reporter and I try to report deep down the
middle and try to allow for, you know, human mistakes. And from Richard
Nixon right on through Bill Clinton, you know, politicians at the top when
they make mistakes they pay big prices and they should pay big prices. And
so that's sort of the context in which that was said. But I donít have
any argument with anyone who wants to say, ĎWell, Dan, I think youíve
made a mistake.í My answer to that is, ĎMan, Iíve made a lot of
mistakes over my lifetime.í"
And this is one of the many.
On the May 15, 2001 OíReilly Factor on FNC,
this exchange occurred:
Bill OíReilly: "I want to ask you flat
out, do you think President Clintonís an honest man?"
"Yes, I think heís an honest man."
"Do you, really?"
"Even though he lied to Jim Lehrerís face about the Lewinsky
"Who among us has not lied about something?"
"Well, I didnít lie to anybodyís face on national television. I
donít think you have, have you?"
"I donít think I ever have. I hope I never have. But, look, itís
"How can you say heís an honest guy then?"
"Well, because I think he is. I think at core heís an honest
person. I know that you have a different view. I know that you consider it
sort of astonishing anybody would say so, but I think you can be an honest
person and lie about any number of things."
For that quote, at the MRCís Dishonor Awards
on January 17, Rather won the MRCís "Gilligan Award (for the
Flakiest Comment of the Year)" and the audience selected it as the
Quote of the Year. To view a RealPlayer clip of the above exchange, go to:
If you can lie "about any number of
things" and still be honest in Dan Ratherís mind, then I guess you
can be biased in any number of stories and still be a "down the