Banks face the music as public tunes out
Source: Agencies |
March 17, 2012, Saturday
|
Print Edition
Print Edition
BRITISH politicians visiting Wall Street would once have been only too happy to have their photograph taken with the head of Goldman Sachs. This week in New York, Prime Minister David Cameron met Goldman Chief Executive Lloyd Blankfein and other bankers in private.
In Europe, and Britain in particular, banks are under intense fire over bonuses and their reluctance to lend. Wall Street's image has been marred by the Occupy movement and critical reports by regulators and politicians.
Cameron's meeting came the day after a resignation letter by a Goldman Sachs executive, published in the New York Times, alleged senior staff at the bank called their customers "muppets," or fools. The allegation will only reinforce the public's dismal view of the banking sector, said Gordon Beattie, who runs corporate public relations firm Beattie Communications.
He contends the incident should spur banks and investment banks to drop the largely defensive public relations stance broadly adopted by the industry since the financial crisis.
"There is a huge opportunity here for banks to take a brave pill and come out and say 'look, we've lost our way, we know we've done damage and we're determined to put it right'," Beattie said, adding that Goldman should take the lead.
So far banks have shied away from a proactive approach. Some fear it could reinforce public antagonism, one senior UK bank executive said, because it would amount to a recognition of past failing - something many bankers do not accept.
"They think 'I'm not responsible' (for the crisis) and it may be that individually, or that their banks aren't, but they are not recognizing that the public can't tell the difference, and the politicians won't," he said, on condition of anonymity.
Such is the depth of mistrust, however, that even the best PR is seen as unlikely to silence critics. Public anger stems chiefly from the taxpayer-backed bailouts of 2008.
People say they are looking for signs the industry is actually changing its ways, and not just getting better at trumpeting its good deeds.
Behind-the-scenes initiatives will be key to regaining trust. "Apologizing is just step one. The next one is setting out how you will behave in future, not in the press but by reaching out to clients, to people inside the bank," Beattie said.
He suggested banks could make employees sign up to internal value codes.
In Europe, and Britain in particular, banks are under intense fire over bonuses and their reluctance to lend. Wall Street's image has been marred by the Occupy movement and critical reports by regulators and politicians.
Cameron's meeting came the day after a resignation letter by a Goldman Sachs executive, published in the New York Times, alleged senior staff at the bank called their customers "muppets," or fools. The allegation will only reinforce the public's dismal view of the banking sector, said Gordon Beattie, who runs corporate public relations firm Beattie Communications.
He contends the incident should spur banks and investment banks to drop the largely defensive public relations stance broadly adopted by the industry since the financial crisis.
"There is a huge opportunity here for banks to take a brave pill and come out and say 'look, we've lost our way, we know we've done damage and we're determined to put it right'," Beattie said, adding that Goldman should take the lead.
So far banks have shied away from a proactive approach. Some fear it could reinforce public antagonism, one senior UK bank executive said, because it would amount to a recognition of past failing - something many bankers do not accept.
"They think 'I'm not responsible' (for the crisis) and it may be that individually, or that their banks aren't, but they are not recognizing that the public can't tell the difference, and the politicians won't," he said, on condition of anonymity.
Such is the depth of mistrust, however, that even the best PR is seen as unlikely to silence critics. Public anger stems chiefly from the taxpayer-backed bailouts of 2008.
People say they are looking for signs the industry is actually changing its ways, and not just getting better at trumpeting its good deeds.
Behind-the-scenes initiatives will be key to regaining trust. "Apologizing is just step one. The next one is setting out how you will behave in future, not in the press but by reaching out to clients, to people inside the bank," Beattie said.
He suggested banks could make employees sign up to internal value codes.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
