Despite the recent stock boom, nearly half of investors said they trusted financial services companies less in 2010 than in 2009, according to an Edelman survey released Thursday.
Forty-six percent of respondents said their trust had declined, while 57% cited financial services companies "acting in a greedy manner" and 18% maintained that the "industry itself has made the problems worse."
The Dodd-Frank Wall Street Reform and Consumer Protection Act has not restored public confidence. In fact, 56% of those surveyed believe that financial institutions need more regulation.
Half the respondents said they need help managing their money more effectively — assuming they can find a firm they trust and respect — but six in 10 are wary of large financial services firms.
Respondents had household incomes of at least $50,000 and at least $10,000 of investable assets. A wealthier group, with an annual income of more than $150,000 and investments of more than $100,000, was less wary, but not by much. Only 52% said they trust national banks and 49% trust brokerage firms, compared to 45% percent and 43% for the survey respondents as a whole.
