update : after the coordinated action by the central banks the stock market seems to rebound. Thanks to the coordinated nature of it and the trust it inspires.
According to DE Morgen individuals are getting their money out of the bank - even after the new 'powerful people' were sent to the top of the bank to set things in motion and salvage the bank.
According to the stock market some investors are thinking the same thing
and the European Union is doing nothing while the crisis is worsening day after day. Why do we have an European Union if there is now an Union to head off the greatest financial crisis in 80 years ? People don't have the feeling that the European union is protecting and helping them and if the European Union is not there for the people, why do we have one in the first place ? Next year there are European Elections..... Try to explain this bloodbath several months later and get the sympathy to vote pro-European. And the last thing we need is destabilised European federal institutions because they have lost popular credibility because people can't trust them to do the right things. It is in times of war and hardship that you find your real friends is a popular saying.
Back to trust. The government thought that by appointing those two men, people would have enough trust to keep their money and stock in the bank. The problem is that the french banker is very trusted by Sarkozy and came from the bank that took over Fortis, so people are thinking that he is there to prepare the nationalisation or sell off to France or breakup of the bank and as our political leaders first said that Fortis couldn't go broke but now are saying that over and over again in all the media that Fortis was in fact on the brink, people just think that Dexia is also on the brink. And that even if they say that Dexia won't go broke, people don't believe it because they said that about Fortis also. Take with that a high level of activity on the bulletin boards on the internet and you have all the ingredients of a disaster in the waiting.
And Jean-Luc Dehaene. He should give people trust, you think. This is what our prime Minister thought and tries to sell. Well sorry but he is the wrong guy in the wrong place at the wrong time. Not because he is not smart. But because he has worked in the private sector before. Inbev is being cited but that is de facto being run by Brasilians. And something that is not mentioned so much but that is still on the minds of many small investors in Belgium : Lernaut and Hauspie, which by accident are in Belgium for their trial. Luckily the court didn't seem to find it necessary to call Jean Luc Dehaene as a witness. Do you really have to place someone with that background on a bank that needs the image of stability and continuity ?
Or just tell is as it is. Jean Luc Dehaene is being placed there as ex prime minister to assure the Belgian interests in the proxy battle between France and Belgium over the control of this ship heading to the ice clip.
I am hearing it over and over again. Crisis communication is in a real crisis now and turns out to be just as the lending/credit crisis to be No communication. But in fact to break this cycle you need trust and that trust you can only get by transparancy and that you can only get if you trust the numbers and the internal and external controls and all that have been proven to be insufficient, lies or non existant. If they don't attack that problem - even if it can have short term dramatic effects - they won't survive in the long term.
A marriage only survives because there is enough trust in the intentions of the other party and in the probability that he or she will stay and make some efforts that make it worthwhile. Trust is not different.
And online companies should look with big eyes to what is happening and learn a lot and invest much more in security because a security problem now in their infrastructure can have the same effects in the present climate.