The WSJ on Bernsetin's Gray: Inaccurate and Unfair

The first, last, and only point of Paul Gigot’s weird anti-Fannie and -Freddie screed in Wednesday’s Wall Street Journal, from what I can tell, is to a settle a bunch of personal scores related to a dispute that seems to have gotten under Gigot’s skin way too deeply.

How else to explain Gigot’s snide portrayal of the late Jonathan Gray, who covered Fannie (FNM) and Freddie (FRE) for Sanford C. Bernstein until his untimely death last October? I knew Jonathan for many years. He was simply one of the best financial services analysts I’ve seen; no one did better, more independent analytical work. Jonathan was tough and skeptical when he thought circumstances warranted—I recall he was very hard (correctly) on the thrifts in the early 1980s—without falling into the trap of becoming permanently cynical about every company he covered.

Jonathan was talented, upright, and highly respected throughout the industry. Gigot does himself no favors by implying otherwise.

It’s one thing to have an honest investment disagreement. Those happen every day on Wall Street. It’s another to reduce the disagreement to the level of personal hit job—particularly when the object of your attack isn’t around to respond.

Paul Gigot ought to be ashamed of himself.

Tom Brown is head of BankStocks.com.

Comments

[rm:]

Do you have any evidence to refute what's in the article?

2008 Jul 27 11:26 AM

[Tom Lindmark:]

Gigot's article was one of the best I've seen on the subject. If you haven't read it I suggest you follow the link included in this article and enjoy some fine writing and excellent analysis.

2008 Jul 27 12:34 PM

[PDL27:]

I agree with the two earlier comments -- I think Gigot's criticism of Fannie and Freddie is right on the mark. I don't recall the specific references to Bernstein's Jonathan Gray but I don't think they were the central point of Gigot's piece. Fannie and Freddie have had a free ride for the last couple of decades and now, the "chickens have come home to roost" -- unfortunately, at the taxpayers' expense.

Keep up the good work, Paul!

2008 Jul 27 07:42 PM

[Esther Peacock:]

Dear Mr. Brown,

I just wanted to take a moment to thank you for coming to the defense of my brother, Jonathan Gray. He would have appreciated your words greatly. I wish he could have lived long enough to have been able to add his insight to the financial mess our nation is now in. I know his analysis would have contributed greatly.
Thank you for your support on his behalf.

Sincerely,

Esther Gray Peacock

2008 Sep 19 12:21 PM