Lawyer Sees First Amendment Problem In Financial Woes

Communications attorney Matthew Leibowitz has written the Federal Communications Commission a warning of what he says is a "First Amendment Perfect Storm" that the FCC must take steps to avoid. Leibowtiz, principle at Leibowitz & Associates, said in his letter, a copy of which was also sent to Multichannel News, that the storm will be created when the decline of newspapers is combined with potential bank/government ownership or control of TV and radio stations. He wants the FCC to open an inquiry into how to protect the First Amendment by protecting banks' interest in broadcast properties and the liquidity of those stations. If you don't protect that bank interest, he says, "there will never be another bank loan to broadcasters." And the government could wind up controlling more than a station's license. "We now have a potential seismic restructuring of broadcast ownership he warns, "with bankers acquiring significant interest in numerous broadcast stations. The concurrent de facto nationalization of these lenders may, in turn, lead to significant de facto government ownership of the commercial broadcast media," he said.