Bear Stearns' minimal communications not enough

In April, PRWeek's Nicole Zerillo reported that Bear Stearns' failure to communicate its liquidity situation hastened its downfall. The Wall Street Journal recently reported on a similar issue, and provded a detailed account of how fears and rumors ultimately led to the bank's downfall.

In April, PRWeek's Nicole Zerillo reported that Bear Stearns' failure to communicate its liquidity situation hastened its downfall. This week, the Wall Street Journal began a three-part investigative piece on Bear Stearns' dark days, providing a detailed account of how fears and rumors ultimately led to the bank's downfall.

“The brokerage's sudden fall was a start reminder of the fragility and ferocity of a financial system built to a remarkable degree on trust,” the article notes. “Billions of dollars in securities are traded each day with nothing more than an implicit agreement that trading partners will pay up when asked. When investors became concerned that Bear Stearns wouldn't be able to settle its trades with clients, that confidence evaporated in a flash.”

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PRWeek reported in May that the Federal Communications Commission hired Ketchum to work on an account designed to educate consumers on the electronic devices that will be necessary in order to watch TV when stations switch to digital transmission in February 2009. The New York Times recently published an article that said many homes are currently unprepared for the analog to digital conversion, which may have an impact on ratings in February.

In June 2007, PRWeek's Tonya Garcia wrote an article about the identity theft prevention company LifeLock's PR strategy. A recent New York Times article claimed that some people are skeptical of LifeLock's fraud prevention services.

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