Reputation Premium at Work

January 28, 2009

Reputation Premium at Work

So the Spanish mega bank Banco Santander announced today that it is repaying customers who lost money in their Optimal Strategic US Equity Fund which was invested with fraudster Bernie Madoff. The bank is paying 100% to the victims (not to institutional investors) by handing out €1.38 billion in shares. This move puts off legal actions and helps to preserve its reputation.  As I see it, the reputation premium is at work.

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Leslie Gaines-Ross
Leslie Gaines-Ross
lesliegainesross@gmail.com

As Weber Shandwick’s Chief Reputation Strategist, I focus on the ever changing world of reputation. For the past 25 years, I have relentlessly observed, researched and commented on the rise and fall of reputations.

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