The role of rumour and the media in public confidence in financial institutions
Australian Regulatory Compliance Review:
I’m in Darwin for the Australian Mutuals conference until Thursday so posts will be “light” but this article was mentioned by CommSec economist Craig James yesterday and is worth reading: Bringing Down Bear Stearns.
It raises the question whether investigative journalists seeking to make a reputation for themselves have published unsubstantiated (even vicious) rumours which could generate a “run” on financial institutions. And how should financial institutions subjected to rumours respond?
APRA Chair John Laker’s speech.