Shocks & Stares » Banks http://blogs.hillandknowlton.com/shocksandstares H&K\'s Financial & Professional Services Team Blog Tue, 19 Mar 2013 08:00:56 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Europe’s troubleshooter takes on his latest challenge http://blogs.hillandknowlton.com/shocksandstares/2012/03/europes-troubleshooter-takes-on-his-latest-challenge/ http://blogs.hillandknowlton.com/shocksandstares/2012/03/europes-troubleshooter-takes-on-his-latest-challenge/#comments Mon, 19 Mar 2012 13:23:12 +0000 David Chambers http://blogs.hillandknowlton.com/shocksandstares/?p=596 THIS POST IS BY SALLIE BALE

Andrew Gowers, former Editor of the FT, is the man who claimed in 2005 that there is no future in print media, wrote a review of intellectual property for Gordon Brown, was once described by The Telegraph’s City Editor as “our man in a disaster”, was the head of media at BP during the Deepwater Horizon Crisis, and was previously Head of Communications at the ill-fated investment bank Lehman Brothers.

With a CV like that, he is surely the best choice to restore the battered reputation of Europe’s banking industry, isn’t he? Well, Reuters reported earlier this month that the Association for Financial Markets in Europe (also known by the slightly snappier acronym AFME) has appointed Gowers as their Director of External Relations in an attempt to reverse the increasingly negative public perception of the banking industry.

Financial industry body, AFME has a new troubleshooter

It would appear that Gowers has the experience to deal with big name players in crisis – but commentators question whether he is actually capable of success. Obviously the difficulty here is that by their very nature successfully-managed crises are not high profile and so we must look at other measures of success for those crises that are played out in the media.  How quickly and cleanly the company or organisation comes out of a crisis and is able to rebuild trust and reputation is perhaps a better measure.

Lehman Brothers is no more and not remembered fondly and BP is still struggling to regain lost ground. That said the crisis communications industry learnt a great deal both from the failures and successes of the BP Deepwater Horizon episode and hopefully for AFME, Gowers did too.

There is much to be learnt from BP’s Deepwater Horizon incident in 2010, and Gowers will be able to apply these learnings to AFME. Many commentators believe that the biggest obstacle facing the BP communications team was the legalities around what they were able to say, resulting in a ‘too little too late’ situation.

There are so many avenues that this journey could take; will Gowers pick a spokesperson to give the intangible concept of “The Bankers” a human face? Will he advise them to express empathy for what has happened in the past five years? Or will he just soldier on with the task of tackling the endemic structural failures of the European banking system? Will he go to where the people are and use social media to re-connect the masses with the banking industry? Would that work?

It will be interesting to follow his progress and see how his strategy will play out in the coming months, or more likely years. He has already spent three months as a consultant for AFME helping edit the AFME book Investing in Change, and so should be able to hit the ground running.

Is this the biggest challenge in Gowers’ career so far? Trying to increase transparency, please many diverse stakeholders and implement meaningful change is going to be a perplexing test for banks across Europe, but the task of communicating those changes to the European public and demonstrating that they have worked is arguably the greatest challenge of all.

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Friday Fiver http://blogs.hillandknowlton.com/shocksandstares/2012/03/friday-fiver-7/ http://blogs.hillandknowlton.com/shocksandstares/2012/03/friday-fiver-7/#comments Fri, 02 Mar 2012 12:06:15 +0000 Joey Ng http://blogs.hillandknowlton.com/shocksandstares/?p=569 Sticking to the format of our new shorter and snappier Friday Fiver, here are five things that caught our eye from the week that was:

Just horsing around

Source: Creative Commons/Kenjonbro

1. The rise of the Sun on Sunday and the death, or rather resignation of another – On Wednesday, James Murdoch resigned as executive chairman of News International, raising speculation to the possibility of one of Jimbo’s older siblings emerging as eventual contender for the top dog of News Corp as he steps down.

2. The Leveson enquiry unrivalled another “surprise” this week with Rebekah Brooks and her gift horse from the Metropolitan Police. Sure did reveal the stable relationship Brooks had with the police. Oh the puns!

3. Facebook Timeline for brands got us talking this week as well. What it will mean for financial clients, for professional services? How to mark those significant brand milestones? I mean, issue 9.99 of an ISA account is hardly going to create the same emotional relevance, as the nostalgia of an iconic Coca Cola advert. Whatever the outcome, existing brands have just 30 days to clean up their Timeline and flip the switch.

4. In other news, banks have had their knuckles rapped this week by the Financial Ombudsman Service (FOS). The FOS received over 250,000 complaints in 2011. Topping that list were Lloyds and Barclays as the most complained about banks.

5. Soon you’ll be able to use your phone for ANYTHING and EVERYTHING. Just earlier this week, H+K client, Visa Europe announced a worldwide partnership with Vodafone that will allow mobile phone users to pay for goods and services using their handset.

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Friday Fiver http://blogs.hillandknowlton.com/shocksandstares/2011/12/friday-fiver-3/ http://blogs.hillandknowlton.com/shocksandstares/2011/12/friday-fiver-3/#comments Fri, 02 Dec 2011 16:43:35 +0000 Edward Jones http://blogs.hillandknowlton.com/shocksandstares/?p=453 It’s been a big ol’ week in the land of FPS, what with the Autumn Statement, Public Sector strikes, another round of downgrades for Europe’s banks and the beginning of Yuletide. Here’s our take on the week that was.

The Autumn Statement

After declaring the Pre-Budget Report dead, the Government this week delivered their Pre-Budget Report Autumn Statement. It was depressing news, but we all knew it was going to be and it looks set to continue for the foreseeable future. The headlines are lower growth, increased borrowing, a squeezed public sector and more measures to help small businesses, a 0.088% increase in the bank levy and a promise to further reduce corporation tax.

Picture: Reuters UK

What really caught our eye(s) however, were the measures to help mid-size businesses; a theme championed by John Cridland at the CBI, the forgotten army of mid-size businesses have suddenly been remembered. In an attempt to create the UK equivalent of Germany’s Mittelstand, tucked away on page 64 of the Autumn Statement are a host of measures to help mid-size firms achieve their potential and export more proactively. After all, where else is growth going to come from?  

Going down, down, down…..

There’s been so much grim news on the economic front this week that it’s a little hard to pick out the ‘highlights’. To recap quickly – China’s domestic consumption appears to be slowing, as does its manufacturing production; the UK is going to grow very little in 2011, and even less in 2012; Italy continues to have to pay a fortune to borrow money; business confidence that the eurozone will survive is ebbing away; and several stars of The Only Way is Essex are about to be booted off.

Amongst the carnage, two (possibly linked) events stood out. On Tuesday evening, the ratings agency Standard & Poor’s downgraded its investment rating on a string of high-profile banks including HSBC, Barclays and Goldman Sachs. The markets, predictably, took a grim view as the FTSE and other indices headed south yet again. It’s possible, though unproven, that regulators took a grim view as well. On Wednesday afternoon, as most of the UK’s economic journalists were huddling down for some post-Autumn statement analysis at the IFS, the Bank of England and several other central banks released a statement detailing co-ordinated action to lower the cost of borrowing in dollars for banks and other financial institutions. The markets, predictably, took a decidedly less grim view of this and promptly shot up north, yet again. Conclusions? That the global forces buffeting the global economy have become so strong that every announcement either way is now being leapt upon like a cure for cancer – stand by for next week…

Happiness is… a cigar called Hamlet

Who would believe it? Despite being in the depths of one of the worst economic cycles in recent history, the people of Britain consider themselves, for the most part, to be pretty damn happy! In a survey commissioned by David Cameron to gauge how happy the UK is, three quarters of us place ourselves at seven out of ten or higher on a scale of wellbeing.

With unemployment scaling 8% and inflation pushing 5%, you would be forgiven for thinking that the good people of Britain would be pretty miserable. But that good old stiff upper lip and Blitz spirit appears to be in abundance. People claim that their children’s well-being, personal relationships and mental well–being are the things they are most satisfied with. Which basically means that those things that money can’t buy, make us happy and we value them most.

Now isn’t that something to smile about?

Smile! Image Source Page: http://dzzle.com/videos/yogurt+advert

The ultimate compliment

This week we were reading about Warren Buffett’s latest investment, the acquisition of his local newspaper, the Omaha World-Herald Company.

Whilst reading the FT’s report on the subject, we were struck by a realisation of profound significance. Warren Buffett is the spitting image of Carl Fredricksen from Disney/Pixar’s 2009 film Up.

Carl has much in common [full plot here] with Buffett who is known for his kind nature and is a renowned philanthropist. Perhaps Disney/Pixar were paying him a compliment.

The Fiver team were dissapointed to subsequently find via Google that others have spotted the resemblance but we are still claiming this one for industry event small talk.

Carl Fredricksen from Pixar smash Up (Pic: Bloomberg News via The Telegraph)

Warren Buffett (Picture: Disney/Pixar)

Good Week/Bad Week…..

Leaping up the charts this week, it’s tall, thin and very clever economist, Robert Chote, head of the Office for Budget Responsibility. As we noted above, the OBR released decidedly grim numbers on the future of the UK economy on Tuesday, so you might not think Mr Chote would be a particularly happy bunny. He picks up our award however, because as one media commentator put it, Mr Chote is now effectively chief policy officer for the UK economy – based on his numbers, the Chancellor (and probably the Bank of England) have to react.

Hurtling down the charts sadly is former Italian footballer, Damiano Tommasi. The follically-blessed former Roma man came up with a novel solution to Italy’s debt problems this week when he called on his fellow footballers to use their sizeable wage packets to buy Italian bonds at a discounted rate – hence saving the government from having to agree to interest rates of over 7% every time they were looking to top-up the cash register. Sadly, the idea bombed, seemingly never to return.

So there you have it. Thanks to Clare Coffey, Jonathan Henderson and Dave Chambers for their contributions.

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