Maddow Busts Morgan Stanley Board Member for Lack of Transparency

Last night, Rachel Maddow did something I never thought I'd see a journalist do: In the name of transparency, she went back and clarified that a bailout-justifying guest of hers actually had a blatant conflict of interest. Watch the clip here.On Monday, Maddow had on Berkeley professor Laura Tyson to talk about the bailout. You can watch that clip here. As you'll see, Tyson defended the firms that have received bailout money, saying they are not at fault in either how they are using the money, or in how they are refusing to answer questions about their use of the money. She also insisted that companies that get bailout money should be able to keep paying dividends to their shareholders.

Yet, Tyson didn't tell viewers that she sits on the board of directors of Morgan Stanley, a bank that has received $10 billion in bailout money. That's right - according to Morgan Stanley's SEC filings, Tyson makes about $350,000 a year from Morgan Stanley in total compensation from that position, and she now owns about 79,000 shares of the company. In other words, she has a direct financial interest in defending the bailout, absolving bailout recipients of wrongdoing, and justifying the use of bailout money for shareholder dividends.

Obviously, it's really unethical to appear on a show billing yourself as an objective disinterested professor at the same time you aren't telling people you are on the board of directors of the company you are effectively defending. But, as a recent New York Times story about defense commentators shows, this kind of thing happens all the time. It's completely corrupt - quite literally, paid industry spokespeople are being allowed to cloak themselves in the veneer of objectivity and use the media to limit the parameters of our political debate on major issues.

Thankfully, when I pointed Tyson's conflict of interest out to Maddow and her show's staff, they did the responsible thing and made a big effort to inform viewers about what happened. Indeed, in doing this follow-up piece, the Rachel Maddow Show displayed the kind of integrity and respect for their audience that is almost unheard of in political journalism. In being so honest about this, they really showed what their program is all about, and how they aren't willing to be used or deceived by corporate spokespeople.

Comments

[SethBLiNK]

The level of adoration of Rachel has reach a fever pitch here along with the condemnation of Tyson.

Get a grip folks... I too think that Rachel is the cat's meow, but all she did here was correct a mistake she had made. It's sad to think that the willingness to admit she had been wrong elevates her to the highest ranks of her profession, and perhaps it does, but can we hold off on the beatification for a week or two when she can be praised for something good, rather than for just owning up to something sub-par?

And as for Tyson. She was invited on to answer questions and she answered them. She wasn't asked about possible conflicts and she had no reason to suspect that MSNBC wouldn't know that she serves on the Morgan Stanley board, something that is so public, Mr. Sirotta seemed to know it without even having to double check.

I don't see her answer proving her to be an apologist for anything other than the dispersal of dividends and that is a reasonable position. She gives the argument for it, and Maddow was free to dispute that argument, or have somebody on who would, weather she knew of the "conflict" or not.

[Thinkingclearly]

Wouldn't it be wonderful if "Hannity and nobody's" audience discovered Rachel? I'd love to see a debate moderated between Hannity and Maddow. She'd clean his clock and wake up some people and bring more Americans over to her show.

How about bringing her on in some of those Meet the Press wrapups with journalists.

[Jason Mannino - Huffpost Blogger]

That's a fine example of basic integrity and personal accountability. If I started to list the people who could learn a lesson from Maddow I'd be typing for at least a week.

[Earthmover08]

Rachel is an exceptional person for her ethical, professional, and personal senses. Her appearances this year have been exceptional. I especially enjoyed her pairing with Patrick Buchanan which on paper would not have covered an aesthetic or demographic that I would have imagined. I actually enjoyed their wit, charm, and chemistry.

[blaharumph]

yes, thank you rachel!

[yoli647]

Gracias Rachel, you are the best. Good job!

[IGGHY]

Bravo! You are my hero.

[zbig]

Rachel Maddow seems to be the only real journalist on TV right now. CBS should get her to replace Couric to give Rachel a bigger impact and provide viewers with accurate news.

[janfin]

Hooray for Rachel! I loved her before and now have even respect for her!

[Oldchef]

Good for you, Rachel. You and your staff are to be commended for going back and exposing the conflict of interest on the part of Dr. Tyson, and shame on Dr. Tyson for not disclosing her personal interest in the bailout she was defending. Recipients of the TARP money should be required to disclose how they are using the money they have received from us before any more is doled out. The idea that they would use this money to buy up other banks, bolster high executive salaries and hand out dividends is truly disturbing to me, when the object was to free up money for loans to businesses which produce tangible products instead of junk securities.

[teacheng]

Great job, Rachel (and David).

[BertrandRussell]

Pretty good achievement Rachel. Taking my already high-standing view of you and show and sending that favorable rating even higher through honest disclosure... what's the world coming to when my well-worn cynicism appears to be on its way to semi-obsolescence? Obama as President and journalists/pundits building respect and trust... this must be some other planet than the one I've been on for the last.... I don't know how long.

[CindyKay]

I Love Rachel !

[rcpmac]

After everyone has fallen asleep watching David Gregory on Meet the Press perhaps NBC will tap Rachel for that position. Not sure they are that smart.

[Ozy]

Meet The What?LOL

[exhale09]

Gold Star Rachel!

Thank you!

[Madmac]

Welcome to the big leagues of Journalistic Integrity Dr. Maddow. Well Done.