1. Between Mistakes Adventures in Journalism

2. Do you know the difference?

3. Lesson One When you start out, work for obscure places. When you make mistakes, only a small group of people will know.

5. Lesson Two Facts are important, but they don’t tell the story. The story needs context and perspective. You need to think big. A story needs to be right.

7. Lesson Three Ask stupid questions

9. Lesson Four Listen to cranks and outsiders

11. Lesson Five Be prepared for resistance

12. magnetar Journalism and the Financial Crisis

13. Big Simple Questions  National Public Radio came to us in the summer of 2009. They asked a very simple question: What did bankers know about the financial crisis?

14. The Project: The Wall Street Money Machine The dominant narrative: 100 Year Flood

15. When? Great financial journalism focused on the events of the fall 2008: fall of Lehman Brothers, AIG We decided to look at late 2006 early 2007

16. What did we find?  Some investment bankers and investors took advantage of the crisis, made it worse  One hedge fund called Magnetar had helped create $40 billion worth of bad mortgage securities deals: Worked with investment banks to make them weak, then bet against them

17. Built to Fail

18. Results  Magnetar: under SEC investigation  JPMorgan: paid $154 million fine  State Street Global Advisors: $5 million fine  Merrill Lynch: under SEC investigation  Standard & Poor’s under SEC investigation  Multiple private lawsuits

19. How did we find Magnetar? Sources!

20. Hurdles  No SEC filings  No list of CDOs  No list of investors  No list of employees at banks who worked in CDOs  No prospectuses  No lawsuits  No investigations

21. Constellations  We actually had to go down a list to figure out how many constellations there were Draco:

22. How did we find people?  Asked people for suggestions, and then asked those people for suggestions  Google searches for people who had talked about structured finance to the media  Searches of conference attendees  Facebook, LinkedIn, other social media

23. Tips for finding sources 1. Think about who speaks to journalists, who would speak to you 2. Find former employees 3. Find disgruntled workers, whistleblowers, people who have sued (for any reason): they may be crazy but they may be useful. 4. Surround a story: Find competitors, suppliers, customers, regulators 5. Don’t just go to the top: Talk to the middle and lower ranks, too 6. Talk to investment bankers and lawyers. Why? These are people who see lots of different companies. 7. Talk to people who talk to the press. 8. Lurk: Go where your sources go to drink, eat 9. Ask everyone you talk to for other people to talk to

24. How do you get people to talk? Once you have a source, how do you get them to talk?  Emphasize fairness and accuracy  Honor them by listening, trying to understand the depths and complexity. You aren’t there just for a quote.  Flattery. It never hurts!  Meet in person  Offer to talk on background: Define this!  Ask them to give you documents. (Then verify that they aren’t fake.)  BUT: Don’t make bad promises, like that their names will never appear in the story  Front door or not?  Get a sliver of information and then go back to them to force them to respond

25. Alcohol helps!

26. Reporting principles  Get documents  Balance? No. Your job is truth, not balance.  Multiple sources  No surprises: Every subject gets a chance to respond. They should know everything you are going to report about them. THIS PROTECTS YOU!

27. Writing the story  Clear: Even on a complex subject, write for everyone (This will help you think about a subject).  Try to be entertaining and interesting!  “Investigative” journalism in the U.S. is often boring. We try not to be.

28. We use cool graphics

29. We will try anything

30. Lessons  Don’t be afraid to revisit a story that seems old  It’s not a matter of whether something was illegal – it’s a question of right and wrong. Does it shock the conscience?  Don’t be afraid to be entertaining and interesting