In the high-stakes world of finance, trust is currency. Reputation, once tarnished, is rarely restored at face value. Yet history is littered with failed public relations campaigns by financialinstitutions that tried—and spectacularly failed—to talk their way out of scandal, mismanagement, or public rage.
These failures aren’t just footnotes in corporate history. They are case studies in hubris, tone-deaf messaging, and the perils of prioritizing optics over substance. In a post-2008 world still reeling from financial disillusionment—and now grappling with fintech disruption, ESG accountability, and economic inequality—effective communication is no longer a luxury. It’s a necessity.
This piece examines some of the most glaring failures in financial PR: what went wrong, why it mattered, and what these moments reveal about the fragile contract between finance and the public.
The Unique Challenge of Financial PR
Unlike other sectors, finance deals with intangible products, abstract metrics, and consumer trust at scale. A restaurant can recover from a bad Yelp review; a bank may never recover from a viral scandal. Financial communications must navigate:
- Complexity: Concepts like derivatives, interest rates, or capital requirements aren’t easily digested by the public.
- Emotion: Money is deeply personal—people react viscerally to financial betrayal.
- Skepticism: Post-2008, financial institutions are often presumed guilty until proven transparent.
- Regulation: Legal constraints limit how quickly or fully firms can respond in crisis.
When financial PR fails, it usually collapses along one or more of these fault lines. The consequences can be devastating—stock plunges, government intervention, or total institutional collapse.
Case Study 1: Goldman Sachs – “Doing God’s Work” (2009)
In 2009, as the world emerged from the wreckage of the financial crisis, Goldman Sachs CEO Lloyd Blankfein gave an interview to The Sunday Times. In it, he claimed, perhaps jokingly, that his firm was “doing God’s work.”
To the public—millions of whom had lost jobs, homes, and savings in part due to the reckless behavior of firms like Goldman—this comment was a PR disaster. Whether intended as irony or bravado, it read as detached arrogance.
What Went Wrong?
- Tone-deafness: The remark ignored the emotional and economic pain of the moment.
- Lack of humility: At a time when contrition was expected, Goldman offered smugness.
- No clear messaging strategy: The quote overshadowed other positive efforts by the firm.
Impact
The “God’s work” quote became a rallying cry for financial reform advocates and fueled populist resentment toward Wall Street. It crystallized public distrust in elite bankers, undermining efforts to rehabilitate the firm’s image.
Case Study 2: Wells Fargo – The Fake Accounts Scandal (2016)
In 2016, Wells Fargo was exposed for opening millions of unauthorized bank and credit card accounts in the names of unsuspecting customers. The response from then-CEO John Stumpf and the company’s PR machine only made things worse.
Initial statements downplayed the scale of the problem, framed it as a “few bad apples” issue, and focused on internal HR actions rather than systemic failures. Public apologies were minimal, and executive accountability was delayed.
What Went Wrong?
- Deflection: Blaming low-level employees for a widespread cultural issue.
- Delayed contrition: Stumpf’s public appearances (notably in front of Congress) lacked visible remorse.
- Failure to match words with actions: The company touted its values while continuing questionable practices behind the scenes.
Impact
Wells Fargo became a symbol of corporate betrayal. It lost consumer confidence, faced billions in fines, and was subject to a rare Federal Reserve cap on its growth. Even years later, the brand struggles with a tarnished reputation.
Case Study 3: JP Morgan Chase – #AskJPM Twitter Debacle (2013)
In an attempt to boost its online engagement and appear accessible, JPMorgan launched a Twitter Q&A campaign called #AskJPM, inviting users to tweet questions at a senior executive.
The result? A tidal wave of angry, sarcastic, and damning tweets from users who saw the campaign as an opportunity to call out the bank’s role in the financial crisis, its foreclosure practices, and its lobbying efforts. The company pulled the plug just hours later.
What Went Wrong?
- Lack of audience understanding: PR planners underestimated public resentment toward big banks.
- Poor timing: The bank was under federal investigation at the time.
- Unmoderated platform: Twitter’s open forum left the brand vulnerable to hijacking.
Impact
Instead of humanizing the bank, #AskJPM reminded everyone why they disliked it. The failedcampaign became a textbook example of how not to do social media engagement in a crisis-prone industry.
Case Study 4: Robinhood – The GameStop Fiasco (2021)
In January 2021, Robinhood—an app promising to “democratize finance”—halted trading on GameStop and other volatile stocks in the middle of a retail investor rally. Users accused the platform of protecting hedge funds at the expense of everyday investors.
Robinhood’s PR response included a vague blog post, corporate jargon, and late-night interviews by CEO Vlad Tenev that offered little clarity and came off as evasive. The brand’s core promise—empowering the little guy—was shattered in a matter of hours.
What Went Wrong?
- Inconsistent messaging: The firm didn’t clearly explain the liquidity requirements or regulatory pressures that led to the trading freeze.
- Betrayal of brand identity: Users felt the company abandoned its mission.
- Lack of empathy: Communications were focused on compliance, not community.
Impact
Robinhood faced lawsuits, SEC scrutiny, and a massive blow to its credibility. Once hailed as the future of fintech, it now battles an identity crisis, especially among the very users it once championed.
Case Study 5: FTX – The Crypto Collapse (2022)
Perhaps no recent financial PR failure was as catastrophic—or revealing—as the collapse of FTX. Once valued at $32 billion and led by the seemingly altruistic Sam Bankman-Fried (SBF), FTX imploded almost overnight amid revelations of fraud, mismanagement, and misleading public statements.
FTX’s PR narrative had leaned heavily on SBF’s public image: a disheveled genius donating to global causes and advocating for effective altruism. But behind the scenes, customer funds were being misused, and risk management was nonexistent.
When the collapse began, FTX’s public statements were vague, contradictory, or nonexistent. SBF gave a series of bizarre media interviews post-collapse, further damaging what little credibility remained.
What Went Wrong?
- Image over substance: FTX’s entire PR strategy was built on SBF’s personality rather than institutional transparency.
- Lack of crisis protocol: Communications were erratic and uncoordinated.
- Deception: The public narrative directly contradicted internal realities.
Impact
FTX’s implosion triggered regulatory crackdowns, investor skepticism across crypto markets, and a broader crisis of confidence in fintech. The firm is now a cautionary tale in both financialmanagement and communications malpractice.
Recurring Themes in Failed Financial PR
While each of these failures is unique, certain patterns emerge across them:
1. Arrogance Over Accountability
Many failed campaigns exhibit a reluctance to admit wrongdoing. In finance, where humility is rare, this often compounds public anger. The best response to a mistake is often: “We were wrong. Here’s what we’re doing to fix it.”
2. Overreliance on Brand Image
From SBF’s cult of personality to Robinhood’s rebel narrative, many firms fall into the trap of believing their own PR. When real-world behavior contradicts the brand promise, disillusionment sets in swiftly.
3. Poor Crisis Planning
Many institutions don’t have a ready crisis communication strategy—or if they do, it’s too slow, legalistic, or detached. In the digital age, delay is death. You must act quickly and sincerely.
4. Disregard for Stakeholder Sentiment
Financial firms often underestimate how angry, informed, or mobilized their customers and stakeholders are. PR is not just about managing perception; it’s about listening to the people affected.
How to Avoid Financial PR Failure
What could these institutions have done differently? Here are foundational lessons for communicators in the financial sector:
1. Build Trust Before the Crisis
PR can’t save a company in freefall if trust was never built in the first place. Long-term credibility—via transparency, education, and stakeholder engagement—is the best insurance.
2. Communicate Like a Human, Not a Corporation
Ditch the jargon. Acknowledge pain. Use real language. Consumers can sniff out insincerity—and they punish it.
3. Align Actions with Words
If your brand claims to democratize finance, don’t protect billionaires. If you claim to be ethical, your operations should reflect that. PR can amplify a truth, but it can’t cover up a lie.
4. Scenario-Plan Ruthlessly
Have a crisis playbook. Update it regularly. Run simulations. Know who will speak, when, and how. Speed matters, but so does preparation.
Failed financial PR campaigns don’t just reveal communications breakdowns—they expose ethical gaps, cultural flaws, and strategic misfires. In every case outlined here, the real problem wasn’t the message. It was the mindset.
The financial world is inherently volatile. Mistakes will happen. What matters is how those mistakes are owned, addressed, and communicated.
Finance is no longer a cloistered domain for elites. In the era of Reddit investors, blockchain transparency, and viral outrage, the public is paying attention—and expecting better.
PR isn’t about spin anymore. It’s about accountability.
And in finance, accountability is the only real currency that matters.