Four months ago, The New York Times ran a big story contending that Bloomberg editors had quashed an investigative report about corruption among leaders in China. The Times story was clearly based on informed comment from people inside Bloomberg who were unhappy about the result. It said that higher-ups at Bloomberg were worried that the story would hurt the company's sales of financial terminals—the mainstay of its business—inside China, since the main purchasers would be directly or indirectly subject to government control.
Like the NYT and some other Western news organizations, Bloomberg was already "on probation" with the Chinese government, because of some very brave and probing official-corruption stories the previous year—including the one on "Red Nobility" that is the source of the graphic above.
As a reminder, here are the main story steps since then:
- The FT did a similar report (here, but paywalled), also clearly based on inside-Bloomberg sources and also saying that Matthew Winkler, Bloomberg's editor-in-chief, had ordered the story killed, for fear of ramifications inside China.
- Bloomberg denied the reports, in categorical but not specific terms. I.e., variations on: Of course we didn't bow to political pressure, and the story was just not ready yet.
- Amanda Bennett, a long-time editor and reporter with experience in China (she was co-author of Sidney Rittenberg's book, The Man Who Stayed Behind), promptly resigned as head of Bloomberg's investigative unit. She did not explicitly address the controversy but made her feelings clear in her resignation statement. It said: "I am totally proud of the work of the Bloomberg Projects and Investigations team over the past five years.... I’m also most proud of the groundbreaking June 2012 story that the team led, that for the first time exposed the wealth of the relatives of China’s top leaders. I’m proud of the courage it took from top to bottom in Bloomberg to make that happen."
- Michael Forsythe, the Bloomberg reporter who had worked for decades in China and was involved in these corruption-investigation stories, was quickly suspended by Bloomberg. He later joined the NYT staff.
- Bloomberg continued to deny the allegation of knuckling-under but refused to address any specifics. The story that reportedly was underway has not yet appeared.
Soon after the flap broke, I received several calls from people inside Bloomberg, all of them insisting that I say nothing that could identify them, or even about the fact that we had talked. One was from a person who warned me that it would be a big mistake to put too much faith in what this person said were competitively motivated attacks by Bloomberg rivals. The other calls were from Bloomberg reporters or staffers, who said that the NYT and FT reports were essentially accurate. I wrote to the man who reportedly gave the spiking order, editor-in-chief Matthew Winkler, and did not hear back.
- Then, last week, the chairman of Bloomberg L.P., Peter Grauer, seemed to confirm the original accounts by saying that it had been a mistake for Bloomberg ever to deviate from its business-oriented coverage.
All this is prelude to the latest news, which is Ben Richardson's resignation as a Bloomberg editor. Jim Romenesko had the story yesterday, followed by this from Edward Wong of the NYT, who also had the story about Michael Forsythe back in November.