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The banking industry's image is about as awful as it's ever been. But what needs to be done by whom, and at what cost, to fix it? Editor at Large Barb Rehm has some ideas.
June 6 -
Angry shareholders and protesters pelted CEO Brian Moynihan with insults and complained about everything from Countrywide to coal ash. Drama aside, management prevailed in shareholder votes on executive pay and other matters.
May 9
After some bad news for Bank of America (BAC) broke over the weekend, customers might associate the company with bull—but not the kind it was aiming for with a new ad campaign.
Two new 30-second television ads for the bank's Merrill Lynch unit, titled "
The bull is part of Merrill Lynch's logo and the ads recall a time when perhaps the reputation of Merrill Lynch, and Wall Street in general, was stronger.
However, news reports this week reminded consumers of the troubles that Merrill Lynch and most of Wall Street faced as the financial crisis hit just a few years ago. Bank of America's executives were aware that losses at Merrill Lynch would likely drag on its earnings for years to come, but withheld that information from shareholders, according to a
Bank of America's investors approved the $50 billion deal in December 2008. The acquisition saddled Bank of America with billions of losses and led to a second taxpayer bailout for the company totaling $20 billion.
A B of A spokesman declined to comment on the record whether the negative buzz generated by the Times story would hurt the ad campaign, which was formally announced Monday. The ads began running at the end of the May.
Since the ads - which primarily promote Merrill Lynch's wealth management capabilities -- are geared toward a general audience, this news may not hurt the effectiveness of the campaign, says Paul Schaus, the president of CCG Catalyst Consulting Group.
Most people do not follow news about the banking industry closely and instead are focused on information about how the general economy is doing, he says.
Years ago, before Merrill Lynch was acquired by Bank of America, it ran similar ads, and the bull is supposed to make consumers think of strong financial markets, Schaus says.
"I feel like they are rebuilding the brand of Merrill Lynch," Schaus says. "The image is the idea of bull versus bear markets. Bull markets usually mean an improved market to most people."
However, Schaus questioned whether the Merrill Lynch brand was being separated from that of Bank of America. Though the ads mention Bank of America in passing, the association is not prominently displayed, Schaus notes.
"Some aspects make you wonder if they are trying to keep them separate," he says. "Will this confuse people?"
The ads will air through September during sporting events, including basketball and football games and tennis tournaments, Bank of America said Monday in a news release.
"Now if they had run the ads during the running of the bulls, that would have been funny," Schaus adds.
