Tribune bankruptcy is more Wall Street banking incompetence

The Chicago Tribune company filed for bankruptcy, and it becomes quite clear that Sam Zell's takeover last year should never have occurred. It was worse than the housing industry's subprime loans made based on inflated values using no down payment loans made to someone who could not pay the money back. Even worse, Zell's bankers used the Tribune company's Employee Stock Ownership program to take control of the common stock of the Tribune.

Then Sam Zell incompetently ran the several fine newspapers he had taken over into the ground. The story is worse than the incompetence shown by the Wall Street investment banks and the Detroit automotive companies combined, compounded by Sam Zell's disdain for journalism and his general incompetence. The man should never have been sold the Tribune.

Harold Meyerson of the Washington Post has the story.