Could Better PR Have Saved Wall Street’s Reputation?

Now that the Great Recession is behind us, it’s interesting to imagine how Wall Street’s reputation would have fared if it had taken a different approach to financial services PR. Even in good times, public relations experts can help banks and investment houses navigate the rocky terrain of federal regulation, the media and public opinion to communicate their value to key stakeholders. Financial services PR is even more important when times are bad. It’s possible that not even the best financial services PR could have helped big banks whose irresponsible practices that led to the financial crisis. However, it’s also possible that a skilled PR consultant could have helped Wall Street soften the blow to its image, especially if that consultant had an opportunity to intervene before the crisis reached fever pitch.

In that case, what would that improved financial services PR have involved? Is it possible that a particularly influential PR consultant could have warned banks against getting involved with financial derivatives? Could a seasoned public relations team have helped Wall Street fight back when it became the go-to punching bag for candidates and political pundits during the 2008 presidential election? Lessons were certainly learned in the wake of the federal bailouts designed to return the banks to profitability. In my opinion, there was little or nothing Wall Street could have done to protect its reputation once American taxpayers – many already struggling financially - were asked to foot the bill for its mistakes. People were highly likely to look favorably at any bank that accepted bailout funds. Still, during that difficult period, Wall Street’s image may well have suffered less if it had taken a better approach to financial services PR in the months leading up to the bailout.

For readers unfamiliar with financial services PR, the practice involves many things: media relations, positioning, thought leadership, branding – and, most important in this scenario, crisis management. I don’t mean to suggest that Wall Street was not actively engaged in all of those practices. To the contrary, I imagine major banks and investment firms were working hard to protect their reputations during the financial crisis, and they probably employed some of the best PR professionals money could buy. My objective here is to be the Monday morning quarterback, so to speak – to consider, now that the crisis is over, which of Wall Street’s PR efforts could have been better.
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