VEXNEWS has learned that The Age’s assertion that a leading building society is invested in dodgy sub-prime debt instruments is wrong.
Finance insiders say Michael West has misunderstood and misrepresented leaked data about those who had invested in products marketed by Lehman Bros.
The spreadsheet apparently relied on in the report did not distinguish between risky debt and debt rated as very safe.
The consequences of the error could be catastrophic for the newspaper if there is a ‘run’ on the financial institution with depositors withdrawing their funds after being panicked by the false report.
UPDATE: Interesting to see one of the financial institutions defamed by The Age has put out a media release explaining exactly how The Age had it wrong.