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Friday, April 15, 2005

First Command: A Tale of Two Newspapers 
The National Association of Securities Dealers has censured, fined, and suspended a First Command broker $25,000 for making unsuitable recommendations to his clients.

Ok, as it should be.

And yes, the Army Times, for once, is on the ball!

But check out the difference in the way the Army Times treated the story, compared to the New York Times.

First Command is a major advertiser in the Army Times, frequently buying the full back page add, and often using four-color half and quarter panels inside the paper. It's a major source of revenue for the paper.

Not surprisingly, First Command was able to get their spin on the story: First Command, not the NASD, identified the problem themselves, and made full restitutions to the investors so identified for the ill-gotten commissions.

The New York Times makes no mention.

I it's just an example of how a newspaper can be more careful with a major advertiser than with someone with only a miniscule presence in their market.

Actually, despite the past cozy relationship between First Command and the Army Times, I think the Army Times piece is excellent. Overall, the Army Times does a much better job than the New York Times, providing a timeline, and noting that this agent is not currently with First Command or any other company. The New York Times makes no such observation, and skates by with the bare minimum.

Splash, out

Jason

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