Media coverage of both stories has been sporadic, often nebulous. The early newspaper stories about BCCI and the savings and loan crisis appeared in small press or trade publications. Much of the mainstream press "missed the story" by neglecting to track each story as it unfolded.
Television failed to provide even the sporadic coverage found in print. Institutional obstacles block broadcast coverage more than print, since nightly news programs seldom have sufficient resources to match the depth of most newspapers. Cultural considerations more directly affect television coverage, as the necessary visual imagery may be missing.
Although the "proper" role of the media remains an open question, most media organizations are influenced to some extent by the tension between the activist and the reactive press. The "just-the-facts" approach falls short of the political check the public may demand, but the activist approach unreasonably inflates public expectations. Nevertheless, the media should have some ongoing responsibility to investigate and follow important stories, especially those involving the activities of the government.
In spite of conspicuous institutional and cultural obstacles, the media are equipped to handle complex news stories. Even in television, so often subject to high concept productions and sound bites, news organizations can cover major financial scandals, given sufficient resources. Both BCCI and the savings and loan crisis reflect the breakdown of public institutions and each brings its cost to the taxpayers -- an exorbitant cost, in the case of the savings and loan crisis. These are not particularly difficult concepts to convey, and the public would be better served if the media made a greater effort to provide more comprehensive coverage of these and other important complex stories.
Howard Kurtz's forthcoming book, Media Circus: The Trouble with America's Newspapers, to be published by Random House, examines the development of the S&L story in depth and explains why it was difficult to break as a news story. The following excerpts from the book expand on the discussion at the Program's conference.