SPURspectives

The Article: U.S. Rescue Fund Is Likely to Foster Bank Takeovers

A recent flurry of posts on a banking blog that I watch raised some interesting questions for me regarding ‘the bailout’, ‘financial assistance plan,’ or whatever you want to call it today. The chatter centered on the notion that the money coming from the bailout was cheap and that their banks were looking forward to using it for acquisitions of other banks, not inter bank lending as it’s intended. This raised the question in my mind: How broad is the brush of public perception when the palate is fear and is it worth the risk of trying to avoid being painted as evil?

I don’t know whether any banks intend to use our government’s financial assistance to acquire competitors with funds that are intended to ease the credit crunch. I haven’t considered the legal or ethical ramifications or whether it is even possible that this could happen. But the perception that it could be happening is powerful and dangerous.

The public is afraid, and fear causes us to lose sight of detail — we paint with a broader brush. Normal events take on new meaning when we are afraid. We jump to conclusions. We spread rumors (see above). We believe rumors. We act irrationally. A normal acquisition that has been in the works for months could easily be painted as a gross misappropriation of funds and abuse of public trust as a result of a poorly phrased headline or an eruption of Twitter tweets.

This is no time to be careless with your brand. Everything that you do or say, or don’t say, is being watched, heard, interpreted, and painted with a very wide brush. It is a time to communicate with your customers and prospects clearly, confidently, and often. Tell them exactly what you are doing and why you are doing it.  Be as above board as possible.

Jamie Dimon at JPMorgan Chase is a great example of how to do it right. Beyond the fact that he and his firm made great decisions leading to their success, they have made great use of their public voice to communicate confidence, direction, and reassurance. It’s worth paying attention to them as they’re reaping the rewards that come from controlling their brand.

We can’t control the width of the brush of public perception. When it gets wide from fear, it’s important to understand that measured, deliberate strokes are necessary — details are gone and everything can get splattered.

Be careful out there.

Tags: bailout, bank, banking, brand, communication, corporate communications, customer perception, economic crisis, economy, fear, financial assistance plan, JPMorgan, marketing