So Sandy Weill, Citigroup’s former CEO, is now conceding that what he spent his lifetime proudly building maybe wasn’t such a great idea after all. The former architect of megabank Citigroup stunned the market this week with his observation that banks may be too big to manage. Why not split up investment banking from regular banking, he suggested during an interview on CNBC. Weill revealed a new mantra: bigger may no longer be better.
Quite a volte-face from the man who fought tooth and nail for the repeal of the Glass–Steagall Act, which previously drew a line between commercial and retail banks. Visitors to Weill’s offices when he was at Citigroup could feast their eyes on a proudly-displayed plaque that read, “The Shatterer of Glass Steagall.” Back then, Weill and his peers credited themselves with creating a brand new banking world.
Why turn back the clock now? As an explanation, Weill’s was masterful in its positioning. Nothing wrong with what he did at the time; it’s just that well, NOW, the situation has changed, Weill explained. This was not an admission of personal responsibility–just that what was once right at the time is “not right anymore.” That was then, this is now.
The PR Verdict: “B” (Almost a Winner) for Sandy Weill, who has now joined the chorus of concern about “too big too fail”. Weill has done a neat (albeit cynical) job of personally shifting from “man in charge” to curious bystander.
The PR Takeaway: Context gives plenty of air cover. By concentrating on the macro, not the micro, Weill has moved into the debate without any personal admissions of failure. This was about what works in the market and nothing to do with his own personal role in the crisis. Not really a change of heart, more of an update about what the markets are saying. That makes it so much easier to swap sides and means he can now sit with the cool kids at the school cafeteria.
What’s your opinion of Sandy Weill’s about-face on banking? Give us your PR Verdict!