Everybody likes two bites at the PR cherry, and US prosecutors may have had their way when it comes to the latest fines levied against British banking giant HSBC. The headlines that HSBC was set to pay a record $1.9 billion penalty for ignoring possible money laundering came out on Tuesday. The announcement wasn’t official, but mysteriously there it was, hours before the official drop date.
News this big can’t be kept under wraps for long. HSBC was expected to agree to pay $1.9 billion to settle a probe in connection with money laundering from narcotics traffickers in Mexico. Also alleged was that HSBC intentionally allowed prohibited transactions with Iran, Libya, Sudan, and Burma while facilitating transactions with Cuba. Headline-making stuff.
Tuesday’s papers carried front-page stories with astonishing levels of detail, helpfully provided by the very trusty “people briefed on the matter.” Once the news was out, Wednesday ‘s media coverage gave even more detail. “HSBC is being held accountable for stunning failures of oversight — and worse — that led the bank to permit narcotics traffickers and others to launder hundreds of millions of dollars,” read the official government statement on day two. Not unlike statements from the previous day, only this time it wasn’t attributed to someone “briefed on the matter.”
The PR Verdict: “A” (PR Perfect) to the US government for what seems like a well-orchestrated PR campaign to maximize publicity.
The PR Takeaway: For really big news, use the “Curtain Raiser.” The old PR trick of releasing information the day before the official launch can not only give useful indications of market reactions but, as in this case, allows the headlines to announce the big numbers on day one and stretch the news to a second day by providing more detail. Maximum publicity for the prosecution; as anyone knows, more is better than less.