JP Morgan’s reputation plunges
From a PR perspective, the way that JP Morgan managed to lose more than $2 billion on a bad trade is easily the worst thing to happen to the bank since before the financial crisis. This chart comes from YouGov BrandIndex, which measures consumer’s brand perceptions, and shows that JP Morgan is now held in lower esteem than Goldman Sachs — quite possibly, for the first time ever.
The plunge in JP Morgan’s “buzz score”, of a good 20 points, is huge: the only comparable fall was the release of the Abacus complaint against Goldman in April 2010.
And just as in that case, JP Morgan’s reputation will recover, and it will surely return to the “meh” range that it’s been stuck in since the crisis — in the shallow end of negative territory.
Still, it’s interesting to note that JP Morgan’s latest score, of -32, is exactly the same level that Goldman fell to in the wake of the Greg Smith op-ed. That op-ed coincided with a major shake-up in Goldman’s PR department. My guess is that JP Morgan’s PR department, by contrast, is much more secure. They haven’t been able to make the bank popular, of course. But they’ve definitely consistently outperformed Goldman. At least until now.