PR FAIL of the Week| The NY Federal Reserve Hires Bear Stearns Executive
PR FAIL of the Week: New York Fed Hires Former Bear Stearns Risk Executive
In a move that has many economists scratching their heads, the New York Federal Reserve announced that it hired Michael Alix, the former risk management executive for Bear Stearns, as senior vice president of their bank supervision group. Alix was the chief risk officer of Bear Stearns from 2006 to 2008 and had worked for the company for 12 years.
Alix was heavily involved in the buyout of Bear Stearns by JPMorgan, a buyout that was also supervised by Fed Chairman Ben Bernanke and New York Fed President Timothy Geithner. Alix’s involvement in the buyout and his subsequent hire at the NY Fed is at the very least questionable and at most illegal.
From a PR point of view – or from a manager’s point of view, for that matter – Michael Alix should not have been hired as vice president. Now that the news is out, the NY Federal Reserve is remaining mum on the subject, adding insult to injury. If a story comes out that is harmful to your company, the best thing that you can do is tell the truth, tell it quick and tell it loud. The world is a fairly forgiving place, but what they will not forgive is the cover-up. Companies and executives almost always are taken down because of the cover-up.
Does your company need a PR firm? MMI Associates is a full-service public relations firm located in Raleigh, NC. Please visit the MMI Associates website for more information. Any questions? Give us a call at 9191-233-6600.
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