Tuesday, July 19, 2011

Murdoch scandal affect far reaching

UNDATED (CNN) -- Media mogul Rupert Murdoch is facing British lawmakers today over the huge phone hacking scandal at News Corp. Several journalists have resigned and ten people have been arrested. Murdoch's son, James, may be forced out.
Arrested, questioned for nine-hours and then released, Rebekah Brooks could play a key role in the investigations into the phone-hacking scandal.
For weeks she was the firewall between the public's fury and Rupert Murdoch's family. Now that she's an ex-Murdoch employee who faces more scrutiny from police and Parliament.

A reporter asks, "Can Rebekah Brooks, will she, bring someone else down in News Corporation?" Sara Smith, ITN correspondent replies, "It's difficult to see how Rebekah Brooks has any interest in blaming anyone else in News Corp. She'll fight very hard to clear her own name and make sure she's not held responsible for knowing about any of the phone-hacking that went on."
Smith says that's because Brooks still values her ties to the Murdochs, or may have her eye on a future editing job elsewhere. Brooks' spokesman says she she'll answer investigators' questions to the best of her ability. He wouldn't comment on reports that she's got several-million dollars coming in severance pay. In any case, the list of casualties in this scandal appears to be inching closer to News Corporation's powerful ruling family.
From the outside: top police officials Paul Stephenson and John Yates have resigned over their handling of the scandal. There's Andy Coulson, out years ago as News of the World editor, out as Prime Minister David Cameron's spokesman this year, arrested earlier this month. Les Hinton, chief exec of Dow Jones and publisher of the Wall Street Journal, is gone. News of the World has closed down. Now that Rebekah Brooks has resigned, and been arrested, many observers say James Murdoch, youngest son of Rupert Murdoch, chairman and CEO of News Corp's divisions in Europe and Asia is on the firing line.
It may come down to where else James Murdoch's fingerprints can be found.
Charlie Beckett with London School of Economics says, "James Murdoch has already made it clear that he paid off a huge amount of money to Gordon Taylor, who was a trade unionist who had his phone hacked. And James Murdoch has made it clear now that he now regards that as an error on his part, and he much regrets it."
If it's found that James Murdoch knew more about the hacking than what's been revealed so far, smith says shareholders and board members may force his father's hand.
Smith adds, "If they were to really demand that James no longer be the heir apparent, that he change the way the company is structured to stop James from taking over, he'd have to listen to them."
There are other reports that independent board members of news corporation are going even further, questioning whether a change of leadership is needed, in other words, replacing James Murdoch altogether. Contacted by CNN, a member of that board called those reports "total crap".

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