Reputation Management Online

Poor Lloyds HBOS. They are the banking equivalent of Gordon Brown: whatever they do makes them look like either stupid or dishonest. The latest economies of truth feature the revelation that HBOS had received substantial amounts of state aid before their takeover by Lloyds Bank. Shareholders are asking why they were not told this “material” information at the time of the takeover. Whatever the bank says, shareholders won’t be happy as the transaction must be one of the largest destroyers of shareholder value in business history.

Of course, Lloyds is denying any worngdoing. Is there a course these people go on to teach them how to deny everything.

This comes a week after Lloyds HBOS denied any further relationship with the “best of banker of his generation” Peter Cummings who was seen entering their headquarters last week. If they are not doing anything with him, why was he entering the building?

Banks have stooped to new lows when it comes to thinking through their reputation management. They still don’t get it when it comes to transparency and sentiment.

The problem for LloydsHBOS is that management reputation is entirely destroyed but as ever, management don’t see it that way and continue to plough on. The Armada anyone?