Brands in Crisis: A Second Act for Financials
September 18, 2008 ‐ 5 comments

citilog

The transformation from financial high-flyer to defunct also-ran happens today with stunning speed. Decades of hard-won reputation disappear in days. Amid the sturm und drang accompanying the meltdown of Bear Stearns (b. 1923), the Federal conservatorship of Fannie Mae (b. 1968) (NYSE: FNM) and Freddie Mac (b. 1970) (NYSE: FRE), and most recently the bankruptcy of Lehman Bros. (b.1850) and the $85 billion bailout of AIG (b.1919) (NYSE: AIG) breaking headlines, what happens to all of these financial brands when the dust finally clears? Even after customers head for the exits, the balance sheets are bereft, and the lights are shut off, do any of these brands have enough intrinsic value for a second act?

Many of historic financial services brands worked their way into the zeitgeist through relentless consumer advertising campaigns, sometimes in multiple iterations. From 1975 – 87 and beginning again 1998, many had good reason to say “Thank you, Paine Webber.” Who can forget the immediate pavlovian response a bon mot from EF Hutton elicited?

And the redoubtable John Houseman added immeasurably to the English lexicon (with a little help from WPP’s Ogilvy & Mather) with his unique pronunciation of the word “earrrrrrrrrn” in these spots for Smith Barney:

Others were immortalized in books, like Solomon Brothers (b. 1910) in Michael Lewis’ Liar’s Poker and Drexel Burnham Lambert (b. 1935) and Kidder Peabody & Co. (b. 1865) in James Stewart’s Den of Thieves.

Most of the these brands disappeared by acquisition – some might say a variation of three card Monte – rather than bankruptcy. But given all of the brand baggage, does it make more sense to start anew or blow the dust off the diamond? Unfettered from the millstone of its swashbuckling Solomon association, Citigroup (NYSE: C) tapped into the latent equity of Smith Barney, re-launching it in its financial centers and retail bank branches. Joseph Jett – the trader famous for inspiring an uncharacteristic emetic response from “Neutron Jack” Welch upon unveiling unprecedented trading losses at Kidder Peabody & Co. – has embraced his notoriety to brand his offshore capital management firm with his own name! Time must indeed heal all wounds for financial services brands.

And what about a renaissance for brands that simply disappeared: First Boston. Dean Witter. Manufacturers Hanover. Chemical Bank (which bought Manny Hanny and Chase and rebranded itself . . . Chase) (NYSE: JPM). What’s old is new again. Even tag lines rise once more. With the deft legerdemain of removing a “the”, Citigroup has become Citi, and resurrected the 1977 line “Citi never sleeps” (arguably a more relevant assertion of value than its ham-handed and specious predecessor, “Let’s get it done”).

Instead of inventing new, tortured brands (to wit, Ameriprise) , why not follow Citi’s lead and imbue these legacy brands with new life? Public memory is forgiving, and history may gloss over Bear Stearns’, Fannie Mae’s, and AIG’s implosions. But the names will retain a familiarity decades in the making. And after all, “Paine Webber” rolls off the tongue a good deal more easily than “UBS Wealth Management USA”.

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5 Comments >>
Snowy
5
October 23, 2008 12:52 am
Well said.
KMHallinan
4
September 23, 2008 12:38 pm
Upon further review of this insightful blog, I've gotta say, that EF Hutton ad was pure gold!
KMHallinan
3
September 23, 2008 12:37 pm
Thought provoking. What will become of these once austere brand names? It truly is a question for the ages.
Mon Chi Chi
2
September 19, 2008 1:42 pm
It takes forever to build up brand loyalty and only one second to lose it. This is the harsh reality of the world of branding. That some brands seem to have the ability to rise again brings hope to brands everywhere. Branding isn't just advertising however, there has to be a quality product to back up all the fancy words and cute commercials.
Petunia Porsign
1
September 18, 2008 1:23 pm
What a literate, witty, thoughtful, informed addition to the sterling quality of brandculture blogs. I do question the word "legerdemain" and the few foreign words peppered throughout. The only really downside is that the UTube illustrations were blurry. However, keep up the good work!
 
 

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