Wednesday, April 02, 2008
How much does reputation count in the world of banking? Two articles, here and here, from the current Fortune magazine say it best. Reputation is everything in the banking community. Fear of what might happen to banks holding bad debts is paralyzing the markets and has virtually stopped lending. Wall Street shot up yesterday, so there is a chance that the fear is dissipating but it is too soon to tell. Another piece of bad news and the market will plunge again. Credibility is fragile now, and it is never impregnable even in the best of times.