Monday, December 15, 2008
It only takes one person to create a reputational crisis for a company as banks and money managers are learning. In this case, it wasn't their doing but they are still facing the wrath of investors who have lost billions. There isn't guaranteed protection against such fraud. There isn't a PR plan that protects an institution when fraud like this occurs. Investors will now have to stand in line to learn if there is anything left of the funds that Bernard Madoff controlled. Everyone is embarrassed for having trusted the man, but then, he apparently ran a clever fraud that even his sons didn't know about. Given the recession and hard times, there is likely to be more bad news along this line.