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Augmagazine:Layout 1 7/25/12 11:58 AM Page 1 Aug. 1987 — Aug. 2012 25 th Anniversary Issue Communications & new media August 2012 I Vol. 26 No. 8 WHY FINANCE EXECUTIVES STILL AVOID 2012: THE YEAR EVERYTHING SOCIAL MEDIA CHANGED FOR RANKINGS OF TOP INVESTOR RELATIONS FINANCIAL PR FIRMS FINANCIAL PR IN THE NEW TOOLS IN THE FIGHT TO RENEW WAR AGAINST PUBLIC TRUST INSIDER TRADING DEALING WITH THE SPECIAL SECTION: FINANCE INDUSTRY’S PROFESSIONAL SERVICES “QUIET PERIODS” WHEN LAWYERS NEED PR PROFILES OF FINANCIAL PR — & INVESTOR RELATIONS FIRMS PROF. SERVICES GOES SOCIAL TOP M&A PR ADVISORS REVEALED August 2012 | www.odwyerpr.com Augmagazine:Layout 1 7/25/12 11:58 AM Page 2 Augmagazine:Layout 1 7/25/12 11:58 AM Page 3 Augmagazine:Layout 1 7/26/12 4:33 PM Page 4 Vol. 26, No. 8 August 2012 EDITORIAL PROFILES OF FINANCIAL PR Trust in the U.S. financial industry is & INVESTOR RELATIONS FIRMS at an all-time low. COURT LETS TV STREAMING 6 24 RANKINGS OF FINANCIAL PR CONTINUE & INVESTOR RELATIONS FIRMS A federal judge denied an injunction sought by major media companies against8 31 WHEN LAWYERS SEEK PR TV streaming service Aereo. For both lawyers and PR pros, the JARVIS TELLS PR PROS TO 32 practice of properly marketing legal REP PUBLIC OVER BRAND services remains largely uncharted. Media pundit Jeff Jarvis challenged EDUCATING PROF. SERVICES 22 PR pros at a social media summit to prac-8 CLIENTS TO SOCIAL MEDIA tice “reverse PR.” Why clients in the professional services CONFRONTING QUARTERLY 33 industries aren’t often equipped to “QUIET” PERIODS respond to breaking news. Companies often struggle with a PROFESSIONAL SERVICES IN THE “quiet period” when they determine how10 they REALM OF CORP. REPUTATION want to stop talking to the press. A challenge professional services PR SARD, KEKST LEAD U.S. 34 pros face is ensuring clients don’t under- M&A PR ADVISORS value the importance of reputation. According to Mergermarket, Sard Verbinnen & Co. and Kekst were the top11 U.S. OVERCOMING PROF. SERVICE’S M&A PR advisors in the first half of 2012. “APPRECIATION GAP” 32 Professions such as lawyers, doctors, www.odwyerpr.com WAVE OF PR CHANGE 35 and entrepreneurs can benefit from PR Daily, up-to-the-minute PR news ROLLS OVER FINANCE as a means of expanding their practices. New bank hires have rolled a wave of turnover in the financial sector’s12 PROFILES OF PROFESSIONAL communications. SERVICES FIRMS TRUST IN FIN. SERVICES 36 DEPENDS ON GOOD PR RANKINGS OF PROFESSIONAL The financial services industry SERVICES FIRMS still faces a trust deficit that can 14 39 be assuaged by good communications. WASHINGTON REPORT INSIDER TRADING STILL SHAKES FINANCE WORLD The U.S. government remains on COLUMNS a crusade against insider trad- 16 ing, with new tools and legal maneuvers. PROFESSIONAL DEVELOPMENT 40 Fraser Seitel COMPANIES COMFORTABLE WITH SOCIAL MEDIA FINANCIAL MANAGEMENT Corporations are making progress 41 Richard Goldstein to connect with customers, employees18 OPINION and the public through social media. 42 Jack O’Dwyer OLYMPIC GOLD A PIPE PEOPLE IN PR DREAM FOR U.S. 43 PR BUYER’S GUIDE Clients wanting a sports market-20 46 ing/publicity program in the U.S. should EDITORIAL CALENDAR 2012 aim for football, baseball and basketball. January: Crisis Comms. / Buyer’s Guide July: Travel & Tourism FINANCE INDUSTRY STILL February: Environmental & P.A. August: Financial/I.R. RESISTS SOCIAL MEDIA March: Food & Beverage September: Beauty & Fashion Investment banks are still uncom- April: Broadcast & Social Media October: Healthcare & Medical fortable adapting to social media 22in their May: PR Firm Rankings November: High-Tech communications campaigns. June: Global & Multicultural December: Entertainment & Sports ADVERTISERS FINN PARTNERS..........................................BACK COVER OMEGA WORLD TRAVEL................................................29 SARD VERBINNEN............................................................9 ICR......................................................................................7 NAPS..........................................................INSIDE COVER SLOANE & COMPANY......................................................11 JOELE FRANK, WILKINSON BRIMMER KATCHER..........23 NICOLAZZO & ASSOCIATES..........................................14 SNL IR SOLUTIONS.........................................................19 KEF MEDIA.........................................................................3 NIRI...................................................................................17 KEKST & COMPANY........................................................13 PREMIERE TV...................................................................11 TV ACCESS......................................................................40 LOG-ON............................................................................27 RUDER FINN......................................................................5 WALEK & ASSOCIATES..................................................21 O’Dwyer’s is published monthly for $60.00 a year ($7.00 for a single issue) by the J.R. O’Dwyer Co., Inc., 271 Madison Ave., New York, NY 10016. (212) 679-2471; fax: (212) 683-2750. Periodical postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to O’Dwyer’s, 271 Madison Ave., New York, NY 10016. O’Dwyer’s PR Report ISSN: 1931-8316. Published monthly. Augmagazine:Layout 1 7/25/12 11:59 AM Page 5 www.odwyerpr.comDaily, up-to-the-minute PR news O’Dwyer’s is published monthly for $60.00 a year ($7.00 for a single issue) by the J.R. O’Dwyer Co., Inc., 271 Madison Ave., New York, NY 10016. (212) 679-2471; fax: (212) 683-2750. Periodical postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to O’Dwyer’s, 271 Madison Ave., New York, NY 10016. O’Dwyer’s PR Report ISSN: 1931-8316. Published monthly. Augmagazine:Layout 1 7/27/12 12:27 PM Page 6 EDITORIAL Americans’ trust in Wall Street hits all-time low cursory glance at the U.S. financial industry reveals a reputation that is, arguably, EDITOR-IN-CHIEF damaged beyond repair. If it were created tomorrow, a public trust index gauging Jack O’Dwyer AWall Street banks would put today’s investment executive somewhere between a [email protected] used car salesman and a third-world military dictator. The loss of trust isn’t incidental. Indeed, a quick look at recent headlines should solve any remaining mystery as to why our ASSOCIATE PUBLISHER faith in financial institutions has virtually disappeared. Kevin McCauley JPMorgan is reeling from the effects of a $6 billion loss related to yet-disclosed trading [email protected] activity (rumor has it the firm had been betting on a mind-bogglingly complex algorithm involving derivatives on derivatives). The Federal Reserve, the SEC and the FBI are current - EDITOR ly investigating the loss, which was deliberately kept secret by the firm for months. Ironically, Jon Gingerich JPMorgan executives said the catastrophe occurred as the result of a company initiative [email protected] meant to reduce risky assets in the firm’s portfolio. Russell Wasendorf Sr., CEO of commodities broker Peregrine Financial Group, made SENIOR EDITOR headlines in July when it was discovered he allegedly stole $200 million in funds from his Greg Hazley firm’s customers over a 20-year period. During an ensuing FBI probe, the firm filed for bank - [email protected] ruptcy protection. A few days later, Wasendorf attempted suicide. He failed, but had the CONTRIBUTING EDITORS wherewithal to leave a detailed suicide note incriminating himself in a litany of illegal activ - John O’Dwyer ity. Fraser Seitel In June, multinational financial services company Barclays was fined $450 million after it Richard Goldstein was discovered the firm deliberately lowballed rates set by the London Interbank Offered Rate (Libor), the interest rates by which banks lend each other money. A criminal investiga - tion is currently underway in both Britain and the U.S. ADVERTISING SALES Facebook’s recent IPO fiasco began as one of the most talked-about public offerings in John O’Dwyer investment history. A computer glitch in the NASDAQ system that accidentally rerouted Advertising Sales Manager investor funds, along with months of fevered hype for a grossly overvalued product, caused [email protected] the social media giant’s share price to plummet to laughable lows, losing more than a quar - ter of its value in less than a month, with total investors’ losses estimated at $40 billion. In July, the Senate Permanent Investigations Subcommittee released a 300-plus-page report citing London-based banking and financial services company HSBC of allegedly assisting money laundering for organizations with known terrorist ties. If guilty, HSBC could O’Dwyer’s is published monthly for $60.00 face a fine as high as $1 billion. a year ($7.00 for a single issue) by the Finally there’s Capital One, which was fined $210 million by the Consumer Financial J.R. O’Dwyer Co., Inc., Protection Bureau for deliberately misleading two million customers by adding a number of 271 Madison Ave., New York, NY 10016. products to its line of credit cards. In a hilarious twist or irony, Capital One is currently in (212) 679-2471 negotiations to acquire HSBC’s credit card operations. Fax (212) 683-2750. Corporate and Financial Communications Redefined Taken together, the U.S. financial industry in 2012 now resembles something like the Mob: Universally nefarious, shamelessly criminal, and in some cases,