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Financial 411: Has London's Phone-Hacking Scandal Jumped Across the Pond?

Thursday, July 14, 2011

The scandal may have just jumped the pond. The FBI has opened an investigation into allegations that Rupert Murdoch's News Corp. tried to hack the phones of September 11, 2001, victims. The company told WNYC it has no comment.

This latest development comes after Murdoch and son James said they will appear before a British parliamentary committee next week to discuss the allegations that one of the company's British tabloids illegally hacked into people's voice mails to get information.

This story has dominated the news media for more than a week now, and it doesn't seem to be going away anytime soon. The company's stock is also down this week.

"I think shareholders are a little bit nervous, both about what's going to come out of the ongoing criminal investigation that's going on in London," said Felix Gilealso it raises a lot of questions about the future leadership of this company, because so many of the key executives are really caught up in this growing scandal and growing investigation."

Gillette also co-authored the magazine's story about News Corp. and what's at stake. He talks about the growing scandal, and its implications.  

Markets

Ben Bernanke was on Capitol Hill for a second day on Thursday, and told a Senate committee it's not yet time for a new round of economic stimulus. Those comments helped send stocks down. The Dow gave up 54 points to close at 12,437. The Nasdaq settled at 2,763, with a loss of 34 points, and the S&P 500 declined nine points, to end the day at 1,309.

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