As Ridge counseled the administration to "put that package together," he sure seemed like an objective commentator. But what viewers weren't told was that since 2005, Ridge has pocketed $530,659 in executive compensation for serving on the board of Exelon, the nation's largest nuclear power company. As of March 2009, he also held an estimated $248,299 in Exelon stock, according to SEC filings.Moments earlier, retired general and "NBC Military Analyst" Barry McCaffrey told viewers that the war in Afghanistan would require an additional "three- to ten-year effort" and "a lot of money." Unmentioned was the fact that DynCorp paid McCaffrey $182,309 in 2009 alone. The government had just granted DynCorp a five-year deal worth an estimated $5.9 billion to aid American forces in Afghanistan. The first year is locked in at $644 million, but the additional four options are subject to renewal, contingent on military needs and political realities.
In a single hour, two men with blatant, undisclosed conflicts of interest had appeared on MSNBC. The question is, was this an isolated oversight or business as usual? Evidence points to the latter. In 2003 The Nation exposed McCaffrey's financial ties to military contractors he had promoted on-air on several cable networks; in 2008 David Barstow wrote a Pulitzer Prize-winning series for the New York Times about the Pentagon's use of former military officers--many lobbying or consulting for military contractors--to get their talking points on television in exchange for access to decision-makers; and in 2009 bloggers uncovered how ex-Newsweek writer Richard Wolffe had guest-hostedCountdown With Keith Olbermann while working at a large PR firm specializing in "strategies for managing corporate reputation."
These incidents represent only a fraction of the covert corporate influence peddling on cable news, a four-month investigation by The Nation has found. Since 2007 at least seventy-five registered lobbyists, public relations representatives and corporate officials--people paid by companies and trade groups to manage their public image and promote their financial and political interests--have appeared on MSNBC, Fox News, CNN, CNBC and Fox Business Network with no disclosure of the corporate interests that had paid them. Many have been regulars on more than one of the cable networks, turning in dozens--and in some cases hundreds--of appearances.
For lobbyists, PR firms and corporate officials, going on cable television is a chance to promote clients and their interests on the most widely cited source of news in the United States. These appearances also generate good will and access to major players inside the Democratic and Republican parties. For their part, the cable networks, eager to fill time and afraid of upsetting the political elite, have often looked the other way. At times, the networks have even disregarded their own written ethics guidelines. Just about everyone involved is heavily invested in maintaining the current system, with the exception of the viewer.
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According to its website, Whitman Insight Strategies has worked for AIG to "develop, test, launch, and enhance their consumer brand," and continues to assist the insurance giant "as it responds to ongoing marketplace developments." Whitman Strategies has also posted more than 100 clips of Bernard Whitman's television appearances on a YouTube account. During a September 18, 2008, Fox News appearance to discuss Sarah Palin, Whitman proceeded to lambaste John McCain for proposing to "let AIG fail," saying that this demonstrated "just how little he understands the global economy today."
On March 25, 2009, in the midst of a scandal over AIG's executive bonuses, Whitman appeared on Fox News again. "The American people were understandably outraged about AIG," he began. "Having said that, we need to move beyond anger, frustration and hysteria to really get down to the brass tacks of solving this economy," he advised the public. In neither instance was Whitman's ongoing work for AIG mentioned.
Another person with AIG ties is Ron Christie, now at the helm of his own consultancy. While working at Republican-leaning firm DC Navigators, now Navigators Global, from 2006 through September 2008, Christie was registered to lobby on behalf of the insurance giant, lobbying filings show. During that period, AIG shelled out $590,000 to DC Navigators.
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Bigger players were on AIG's payroll, too: shortly after receiving its first bailout, in 2008, AIG hired
PR mega-firm Burson-Marsteller to handle "controversial issues." In April 2009, B-M hired former White House press secretary Dana Perino, already an established TV pundit. A month later she was picked up as a contributor to Fox News, where she has had occasion to discuss the economic meltdown.
This past July, for example, Perino joined a roundtable on Fox Business Network's Money for Breakfast, which briefly noted her affiliation with B-M but neglected to mention its link to AIG. When a fellow guest commented that AIG had been "highly regulated" before the crash, Perino pounced, suggesting that current financial reform efforts demonstrate how "Washington has a tendency to overreact in a crisis." When Gary Kalman of USPIRG suggested that regulations had, in fact, been rolled back for decades, Perino scoffed, "I don't think there are many business people who would actually agree with that."
(Whitman, Christie and Perino did not return requests for comment.)
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anine Wedel, an anthropologist in the School of Public Policy at George Mason University and author of the new book Shadow Elite, told me in a recent interview that while these influence peddlers are not necessarily unethical, they "elude accountability to governments, shareholders and voters--and threaten democracy."
"When there's a whole host of pundits on the airwaves touting the same agenda at the same time, you get a cumulative effect that shapes public opinion toward their agenda," she said. ...
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At times, it begins to seem as though the problem is beyond fixing, an unfortunate but unavoidable reality of our media and political landscape, in which the lines between public service and corporate advancement are so blurred. It is clear that the pressure applied on the networks so far has not resulted in systemic change. Even in the aftermath of increasing scrutiny--particularly after David Barstow's Pulitzer Prize-winning exposés in the Times--General McCaffrey continues to appear on television without any caveats about his work for military contractors. As Salon blogger Glenn Greenwald has observed,none of the networks involved in the scandal have ever bothered to address Barstow's findings on air, and they noticeably omitted Barstow's name from coverage of the 2009 Pulitzers. "It's almost like a mysterious black hole that this issue, which is enormous, is getting no attention from the offenders themselves," the Society for Professional Journalists' ethics committee chair Andy Schotz told me recently. ....
