In an unusual move, CNBC has adopting a policy prohibiting employees from owning most stocks:
The General Electric Co.-owned cable channel laid down new restrictions this week considered among the toughest in the industry, barring news staff and managers, as well as their spouses and dependents, from owning individual stocks or corporate bonds. Other employees such as receptionists and hairstylists can hang onto their stocks, but not buy more.
The move is supposed to improve viewers’ confidence in the network’s objectivity, though some doubt it will accomplish much:
Jane Kirtley, a media ethics professor at the University of Minnesota said the new policy likely would little impact on viewers’ trust in the network, and instead might stem from concern about potential regulatory scrutiny down the road on reporters’ investments.
“I have to commend any news organization for saying we want to be like Caesar’s wife — beyond reproach,” Kirtley said, adding: “I wonder whether it is really going to do a lot to increase public confidence or whether it is a policy that is being imposed for some other reason.”
CNBC would have made its confidence-building task a lot easier if it hadn’t been pushing stocks so hard before the market bubble popped–particularly these of the dot com variety.