Elizabeth Warren: Champion of US’ Disappearing Middle Class

 Elizabeth Warren: Champion of US’ Disappearing Middle Class

THE PR VERDICT: “A” (PR Perfect) for Sen. Elizabeth Warren.

You know your PR is on the “stun” setting when the question about the presidential election goes from whether Hillary Clinton will run to whether you’ll run with her. Welcome to Elizabeth Warren’s new world.

Warren, the Democratic Senator of Massachusetts who chaired the government oversight panel on the 2008 bailout, released her latest book, A Fighting Chance, this week. The book is part memoir of her childhood in rural Oklahoma, part commentary on the plight of America’s middle class. (An article in The New York Times about America’s middle class no longer being the richest in the world could not be better timed.) Warren’s plainspoken indictments of political and corporate actions that led up to the financial collapse will likely be read raptly by many a disenchanted American.

Now Warren’s is one of the names being bandied about for 2016. She says she has no intention of running for president herself, nor has Hillary Clinton committed to a run. But Warren is already taking another step in her role as champion of America’s ailing middle class.

THE PR VERDICT: “A” (PR Perfect) for Sen. Elizabeth Warren.

THE PR TAKEAWAY: Check the weather and step out accordingly. Since the economic collapse that still has the US (and the world) reeling, Americans have grown mistrustful of politicians and banks. Enter Warren, daughter of a janitor and a minimum-wage earner who became a Harvard law professor, who seems to speak the same fed-up language that average people do, basher of big banks and crusader for the little guy. The 2016 election is a while away, but Elizabeth Warren’s message is right on time.

Barclays CEO Admits He Was Dazzled by Diamond

 Barclays CEO Admits He Was Dazzled by Diamond

The PR Verdict: “C” (Distinctly OK) for Martin Taylor, former CEO of Barclays.

What to make of the recent mea culpa from Martin Taylor, the former CEO of Barclays? The Financial Times published his opinion piece, provocatively entitled  “I Too Fell for the Diamond Myth,” in which he describes his time as CEO of Barclays during the late 1990s.  Back then, Bob Diamond was running Barclays Capital, the investment banking arm, and reported to Taylor. Judging from the article, we can safely assume they don’t exchange holiday cards.

Taylor gives an insider’s view of boardroom dysfunction and a deliberate effort by traders within Barclays Capital to work around trading limits. The traders exposed the firm to massive risks by window dressing and reclassifying bets to get them past agreed internal controls. This was the late ’90s, after all.

Russia subsequently defaulted, and the markets went into freefall. Describing Barclays’ experience as “worse than most,” Taylor says the “failure to respect the internal control system” precipitated the fire sale of key assets. Traders were dismissed, and Diamond maintained that he had known nothing. Diamond offered to resign, but Taylor, concluding that the business was still in its infancy, said his direct report should stay. Taylor concludes by saying, “I deserve blame for being among the first to succumb to the myth of Diamond’s indispensability.” Ouch!

The PR Verdict: “C” (Distinctly OK) for Martin Taylor. After more than a decade, he has come clean with some insight. Trouble is, we’re still missing some basic information.

The PR Takeaway: Personal reflection wins people over, but ignoring key questions undoes the gain. If Bob Diamond wasn’t asked to leave, was he at least given a zero bonus for the year? Was anything else done to send home the message that the CEO running the business had bottom line responsibility? Without a full explanation, it’s hard to get past the sneaking suspicion that Taylor’s mea culpa might have been more of an effort to rewrite history than a more profound and insightful contribution.

Is Taylor’s article an explanation, or an excuse? Give us your PR Verdict!