03rd Sep 2007, by Andrew Barr

10 Yetis Says "Bad Media" - Part One: Barclays

Last week Jilly stepped into the breach and rescued our dwindling blog posts because there was so much going on and time was short so I could not contribute as much as I wanted to.

That does not mean I have not been keeping an eye on the media and two stories from last week jumped out as being badly managed by the press themselves.

The first is Barclays and the fact it had to, for the second time in August, borrow emergency funding money from the Bank of England.

It is quite right that the media had to cover this story but in the end it whipped the story into such hysteria that the Pound lost value and analysts were seriously thinking that Barclays could be in a dire financial position.

Barclays did not help themselves by issuing a wierd statement, probably without proper consultation with their internal public relations team that was a mish mash of trying to reassure its customers not to panic and sounding bullish to the rest of the City.

In the end Barclays blamed a clearing system breakdown but the long term damage to the economy, the Pound and share prices will last for a while... not to say what damage it has done to Barclays reputation.

Barclays Logo
Don't bank on Barclays going tits up

As regular blog readers will know, I used to work in financial services and I know that one of the main reasons that the PR team did not get the input they should have had to the Barclays statement will have been because higher up the chain there will have been panic about customer reactions.

When customers get a slight sniff that their Bank or Building Society could be in strife they all rush out and withdraw all the money they can to make sure they don't lose out. Daft I know, but it happens... you cannot stop society reaction.

All this said, you watch now as Barclays goes Pete Tong and the media was correct to react the way it did!

Part Two coming tomorrow...

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