Lack of Basic Knowledge of the Finance and Banking Operations or Sheer Sloppiness?

It is hard to believe that the story alleging that the Madison National Bank had declared and issued dividends on its shares of common stock had successfully made its way to the news rooms and past the editorial boards of the concerned news agencies. It’s appalling that none of them reviewed the basic Federal Banking laws and regulations under which the Madison Bank operates which do not permit the bank to declare or pay dividends on its shares on common stock. (“Madison National Bank Corrects Erroneous News Reporting Regarding Dividend”  http://www.reuters.com/article/pressRelease/idUS241358+21-Jan-2009+BW20090121 )


It reflects two possibilities- lack of knowledge of the operation of the Finance and Banking industry or sheer sloppiness of the news agencies in question. At least their reporters should have tried to verify with the Bank’s authorities on the contents of the story before publishing it, for purposes of education.

The result of this error was embarrassing on the side of the concerned news agencies!