Reporters Find Ways to Relate SEC Headlines to Average Readers

By Lizzie Newland

News from the financial and business worlds often have a profound impact on people's wallets and, therefore, lives. But numbers and jargon can scare off or bore readers. 

 

So when business reporters found themselves covering William H. Donaldson's resignation as Securities and Exchange Commission chairman and Chris Cox's nomination as his replacement, they took on the challenge of making the news interesting and relevant to average readers. 

 

If Cox's nomination is confirmed, his corporate-friendly history means that there could be changes in store for investors. Plus, the Cox appointment is the latest twist in a story that has been developing over time. Donaldson's role in the SEC has been to stir up relationships within the commission and with corporations. His resignation and Cox's nomination supply a conflict that may spark interest in readers. 

 

Jonathan Peterson of The Los Angeles Times wrote about Cox's nomination as part of an evolving plot line to draw readers. He noted several themes within the larger SEC story: 

 

�          Donaldson has been a more aggressive regulator than anyone expected.

�          He has taken the SEC in a new direction. In the post-Enron world, the commission took the position of protecting the investing public through tough regulations and enforcement.

�          Business lobbies have been complaining that these regulations are too strict and costing businesses too much money.

�          So how does that change the state of the political system crackdown on corporate scandal? 

 

"This broad plot line makes the story into a conflict that average readers would find interesting," Peterson says, and the Cox nomination fits neatly into this ongoing story.  He points out that the reporter needs to look for themes with as much mass appeal as possible.

 

The details to fill in the plot line are easily obtainable. Look at Cox's long-standing political track record to predict how he may run the SEC. Based on his history and voting record, it's "very reasonable to raise the question, and find people to make the point, that he would take the SEC in a new direction," says Peterson.   

 

A number of journalists used a timeline to show the highlights of Cox's career, allowing the reader to quickly learn about his political decisions. 

 

Another aspect of the story is the impact it will have on investors. Luckily for reporters, readers more than ever are also investors and have a natural interest in how these business stories affect their lives and pocketbooks. 

 

"We now have a nation � of investors of all backgrounds. Through bonds, retirement, savings, [the issue] becomes quite important to them," says Stephen Labaton of The New York Times. As a result, he says, in the present climate, it's not that difficult to reach readers. 

 

Another way to reach the investors is by showing the possible policy implications of the appointment. Find the effect of potential new policies Cox will put in place. You have a captive audience, so tell them how it will affect their lives. 

 

Labaton says he approached this story like he would any other, applying his basic reporting philosophy to try to understand as much about the story as possible to better explain that to readers. In order to do that, Labaton says, "I try to talk to as many people as I can � the agency, members of Congress, those with an interest in the group."

 

Think of sources that provide different viewpoints and increase your knowledge of the subject, including press conferences, official statements, friends and colleagues of the politicians, senators, regulatory officials, advisory firms, investor advocacy groups, and technology and business associations. 

 

Still, Peterson argues that there's a limit to relating some news to average readers. "We are stuck with a reality that this is a technical subject, that this is a subject of rule-making," he says. "Corporate governance policy is not the same thing as the Michael Jackson case; you can only go so far."

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Copyright © 2008 Donald W. Reynolds National Center for Business Journalism