Apr

18

It is good to know from the Blodget interview that 142 people including bank and public relations people get Fed releases 1 day in advance on an "embargoed basis". As Willie Sutton said when the Dodgers lost to the Giants, "makes you want to turn yourself in to headquarters". No wonder the market tends to go up the day before favorable employment releases et al.

Craig Mee writes: 

"Embargoed basis"… looks like the medicos do it too. So much room for shenanigans:

"In the case of a trial that I already know I probably want to cover, I will often ask the PR person if I can get access to the slides beforehand, and I assure them that I fully intend to respect the embargo. In most cases my request is turned down, for any number of good reasons: the company doesn't have the slides, the investigator is terrified of an embargo break, etc. But often enough the request works and I'm able to save a lot of time and effort during a busy meeting by preparing some of the work beforehand."

And from the tech stock crowd (from June 2011):

"And there's one more big problem with embargoes: newsmakers haven't been holding up their half of the bargain. Part of the gentlemen's agreement is that if a reporter or a news organization deliberately breaks an embargo, there will retribution. The company or PR firm whose embargo got flouted is supposed to exclude the offending reporter or organization from future embargo offers and pre-briefings. But I don't see that happening any more. TechCrunch, in particular, breaks embargoes with total impunity. Like codependent spouses, companies and their PR reps always seem to rationalize away the breach and go back to Arrington's crew with the next confidential story.

You can't fix the embargo system with more embargoes. It's time—for me, at least—to walk away from the whole bankrupt system."


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3 Comments so far

  1. Anonymous on April 19, 2013 2:13 am

    Did you really need to know this from that interview? It happens all the time, and the same is true for OECD reports or the like

  2. O.T. on April 20, 2013 5:23 am

    I’ve wondered about this and the “Euro crises”; Any leader there had to recognize the affect of their many, and conflicting, market moving speeches. There was huge, obvious potential to exploit that for a sustained period. I wonder if a result is that in Europe the political-class were all educated about what can be done, in self-interest, during a crises.

  3. astro the family dog on April 21, 2013 6:29 pm

    The belief system of this generation, in government and the FED…has and is ‘parabolic’

    things change, and do so at the worst of times..

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