Printer Friendly PageLetter to the Editor: Citigroup's Spokeswoman Responds to NYT Article
Editor
The New York Times
229 West 43rd Street
New York, NY 10036
To The Editor:
“An Internet Play for Widows and Orphans.” “A top-performing technology stock that even a conservative investor can love." “Mr. Armstrong has turned skeptics into believers by making good on all that he has promised so far.” “Downright cheap,” trading at around $60.
Are these glowing quotes about AT&T plucked from the report of a compromised analyst? No, they are statements in a May 1999 column on AT&T, written by Gretchen Morgenson, the same columnist who just yesterday concluded that there must have been something sinister in the fact that Jack Grubman expressed bullish views on the company around that same time.
Why is it surprising that Sandy Weill, an AT&T Board member and admirer of Michael Armstrong’s achievements and acumen, would share Ms. Morgenson’s views about the company – and therefore suggest to Jack Grubman that he do more research into the fundamentals driving AT&T’s business? And why is it surprising that Jack Grubman, after an exhaustive nine-month analysis, reached the same conclusion that Ms. Morgenson and virtually every telecom research analyst embraced at the time?
There is a vast difference between a CEO telling an analyst what he or she had to write – something Sandy Weill never did and would never do – and appropriately expressing a concern about the quality and accuracy of the analyst’s recommendation based on the facts.
Ms. Morgenson did not contact Citigroup or Sandy Weill before she wrote her column. She, therefore, does not know that Sandy Weill suggested a closer look at AT&T almost one year before Mr. Grubman’s upgrade. She also does not know that thereafter Sandy himself was a significant purchaser of AT&T shares in 1999 before and after the upgrade – shares Mr. Weill still owns.
As to the Y, Sandy Weill has personally done more good for individual employees of Citigroup than any person I know. Ms. Morgenson would do well to learn more about Sandy’s good works before impugning his motives.
Leaks of fragmentary evidence inevitably lead to public misunderstandings. We urge responsible journalists to withhold judgment until the investigators have completed their work and we have their considered views.
With nearly 1.7 million readers, Ms. Morgenson clearly has an immense soapbox – far greater than any investment analyst. She should more carefully consider how her own words affect people's lives and reputation.
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