Frankly, most bankers are just plain greedy and stupid and have
been all along enjoying a reputation and halo they dont deserve.
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Wall Street’s Spin Game
By GRAHAM BOWLEY
NY Times
Published: November 21, 2009
Lloyd C. Blankfein, chief executive of Goldman Sachs, the bank to bash on a resurgent Wall Street, is receiving a lot of advice lately, and it’s not just about money.
Sitting before an audience of 300 at the Metropolitan Club of New York on Tuesday, he spoke with barely disguised disdain in his voice about the work of the image consultants, reputation experts and public relations advisors who are beating a path to his door, and to the doors of other Wall Street banks vilified for their profits and million-dollar bonuses at a time of continuing economic pain.
“Some people come in and say, ‘You are doing too much. Don’t say another word.’ Other people say we should get on the talk shows,” said Mr. Blankfein (as he was awarded the distinction of C.E.O. of the Year by a magazine for corporate directors.)
A few years ago, Wall Street would have cared less for such artifice — it was enough that the Masters of the Universe were wildly successful; their success spoke for itself. But politics and the bottom line have energized the relationship between these New York institutions of money and spin, as banks see the need to calm the rage directed toward them and confront a public relations problem that has seemed in recent weeks to be spiraling out of control.
Just last week, Goldman announced that it would spend $500 million to help thousands of small businesses recover from the recession. At the same time, Mr. Blankfein acknowledged that Goldman had made mistakes. “We participated in things that were clearly wrong and have reason to regret,” he said. ”We apologize.”
But is that enough? And, if it isn’t, what will be? Examples of the public’s anger at Wall Street are legion. Last month, a couple of thousand protesters marched on the American Bankers Association’s annual conference in Chicago brandishing cut-outs of bank C.E.O.s.
As the Chicago demonstration made clear, the image problems aren’t confined to Goldman and could have a cost. Wall Street banks are under regulatory pressure, and come election time, if unemployment is still above 10 percent and Wall Street is still paying itself big bonuses, lawmakers’ wrath might force broader pay curbs, tougher restrictions on what banks can do, or even a break up of the biggest banks.
They are already losing business because of their toxic reputations. One recent Goldman deal, for instance, to buy cheap assets from Fannie Mae, the hobbled mortgage lender, was blocked by the Treasury because it couldn’t be seen to be helping Wall Street benefit once again from the crisis. Critics say the negative media chatter is dragging on their share price.
Now, the main securities industry trade organization has hired Brunswick, a powerhouse public relations firm, to burnish the banks’ image, and banks are urging their staffs to cut down on conspicuous consumption and are canceling Christmas parties in an attempt to turn the reputational tide.
It is a tough brief, even for Manhattan’s skilled public relations industry. Last week, New York State’s comptroller reported that Wall Street profits this year are on track to exceed the record set at the height of the credit bubble. So what to do? Here are some suggestions about making the unloved Masters of the Universe loveable again.
Be humble: Apologize and say thank you.
The quickest way for the banks to redeem themselves could be to admit they played a role in the crisis and that their survival depended on taxpayer money.
Several public relations executives pointed to John J. Mack, Morgan Stanley’s chief executive, as an example of a banker wisely getting in front of the problem early. It was Mr. Mack who offered a full-throated mea culpa at a Congressional hearing last February for his bank’s role in fueling the crisis. “We are sorry for it,” he told lawmakers.
One public relations executive, who does not work for Mr. Mack and who asked not to be identified for fear it could hurt his relationships with other bankers, said: “They have done the best job of anybody of navigating the crisis.” Not every bank has been willing to apologize even though “maintaining otherwise manifestly contradicts the reality that most people see,” according to Stephen Davis, executive director at the Millstein Center for Corporate Governance and Performance at Yale University.
Goldman’s apology, for instance, was a grudging start but it may not be enough. “They should be taking advertisements, they should hold seminars, news conferences,” said Howard J. Rubenstein, president of Rubenstein Associates, who argues for a more effusive mea culpa. “This is a time for gratitude and attitude. One letter to the editor, one news conference, one speech does not make an image.”
Give Back Some Money.
Show you create real products that benefit people.
Cut Pay.
Six of the top American bank holding companies set aside $112 billion for salaries and bonuses in the first nine months, according to New York’s comptroller. If profits continue, bonuses could exceed the $162 billion paid in 2007 — the year before the financial crisis hit stock markets. The banks are Bank of America, Citigroup, Goldman, JPMorgan Chase, Morgan Stanley and Wells Fargo.
been all along enjoying a reputation and halo they dont deserve.
---------------------------------------
Wall Street’s Spin Game
By GRAHAM BOWLEY
NY Times
Published: November 21, 2009
Lloyd C. Blankfein, chief executive of Goldman Sachs, the bank to bash on a resurgent Wall Street, is receiving a lot of advice lately, and it’s not just about money.
Sitting before an audience of 300 at the Metropolitan Club of New York on Tuesday, he spoke with barely disguised disdain in his voice about the work of the image consultants, reputation experts and public relations advisors who are beating a path to his door, and to the doors of other Wall Street banks vilified for their profits and million-dollar bonuses at a time of continuing economic pain.
“Some people come in and say, ‘You are doing too much. Don’t say another word.’ Other people say we should get on the talk shows,” said Mr. Blankfein (as he was awarded the distinction of C.E.O. of the Year by a magazine for corporate directors.)
A few years ago, Wall Street would have cared less for such artifice — it was enough that the Masters of the Universe were wildly successful; their success spoke for itself. But politics and the bottom line have energized the relationship between these New York institutions of money and spin, as banks see the need to calm the rage directed toward them and confront a public relations problem that has seemed in recent weeks to be spiraling out of control.
Just last week, Goldman announced that it would spend $500 million to help thousands of small businesses recover from the recession. At the same time, Mr. Blankfein acknowledged that Goldman had made mistakes. “We participated in things that were clearly wrong and have reason to regret,” he said. ”We apologize.”
But is that enough? And, if it isn’t, what will be? Examples of the public’s anger at Wall Street are legion. Last month, a couple of thousand protesters marched on the American Bankers Association’s annual conference in Chicago brandishing cut-outs of bank C.E.O.s.
As the Chicago demonstration made clear, the image problems aren’t confined to Goldman and could have a cost. Wall Street banks are under regulatory pressure, and come election time, if unemployment is still above 10 percent and Wall Street is still paying itself big bonuses, lawmakers’ wrath might force broader pay curbs, tougher restrictions on what banks can do, or even a break up of the biggest banks.
They are already losing business because of their toxic reputations. One recent Goldman deal, for instance, to buy cheap assets from Fannie Mae, the hobbled mortgage lender, was blocked by the Treasury because it couldn’t be seen to be helping Wall Street benefit once again from the crisis. Critics say the negative media chatter is dragging on their share price.
Now, the main securities industry trade organization has hired Brunswick, a powerhouse public relations firm, to burnish the banks’ image, and banks are urging their staffs to cut down on conspicuous consumption and are canceling Christmas parties in an attempt to turn the reputational tide.
It is a tough brief, even for Manhattan’s skilled public relations industry. Last week, New York State’s comptroller reported that Wall Street profits this year are on track to exceed the record set at the height of the credit bubble. So what to do? Here are some suggestions about making the unloved Masters of the Universe loveable again.
Be humble: Apologize and say thank you.
The quickest way for the banks to redeem themselves could be to admit they played a role in the crisis and that their survival depended on taxpayer money.
Several public relations executives pointed to John J. Mack, Morgan Stanley’s chief executive, as an example of a banker wisely getting in front of the problem early. It was Mr. Mack who offered a full-throated mea culpa at a Congressional hearing last February for his bank’s role in fueling the crisis. “We are sorry for it,” he told lawmakers.
One public relations executive, who does not work for Mr. Mack and who asked not to be identified for fear it could hurt his relationships with other bankers, said: “They have done the best job of anybody of navigating the crisis.” Not every bank has been willing to apologize even though “maintaining otherwise manifestly contradicts the reality that most people see,” according to Stephen Davis, executive director at the Millstein Center for Corporate Governance and Performance at Yale University.
Goldman’s apology, for instance, was a grudging start but it may not be enough. “They should be taking advertisements, they should hold seminars, news conferences,” said Howard J. Rubenstein, president of Rubenstein Associates, who argues for a more effusive mea culpa. “This is a time for gratitude and attitude. One letter to the editor, one news conference, one speech does not make an image.”
Give Back Some Money.
Show you create real products that benefit people.
Cut Pay.
Six of the top American bank holding companies set aside $112 billion for salaries and bonuses in the first nine months, according to New York’s comptroller. If profits continue, bonuses could exceed the $162 billion paid in 2007 — the year before the financial crisis hit stock markets. The banks are Bank of America, Citigroup, Goldman, JPMorgan Chase, Morgan Stanley and Wells Fargo.
