IR magazine News
IR magazine Survey Finds Citigroup Worst, JPMorgan Chase Best Communicators During Subprime Crisis
NEW YORK,
The greatest number of analysts in the survey identified Citigroup, which suffered some of the biggest losses, as the least effective in disclosing its exposure regardless of whether the news was good or bad. In anecdotal comments, analysts described Citigroup's reporting as 'piecemeal' and 'opaque', leading to confusion and a cautious watch on the company.
Merrill Lynch, whose true losses sharply exceeded its first estimates, took 16.9 percent of the 'worst' votes. 'Analysts told us the firm was too slow in getting an accurate picture of its exposure out to the market,' says
JPMorgan Chase, by contrast, was noted for getting out in front of the issue early, being straightforward and having a strong CEO in
AIG, which ranked second best, was also given good marks, in its case for a special six-hour meeting, repeated investor calls and detailed tutorials outlining its subprime exposure. 'AIG was an open book, which is what you are really aiming for in an investor relations program,' Stewart says.
Bear Stearns ranked near the top of both the best and the worst lists. 'Some analysts praised the company for being the first to recognize the problem, but others faulted it for not going beyond very basic disclosure,' Stewart says.
The research on subprime communications was part of the large investor perception study behind the annual IR Magazine US Awards, which will be held in New York on
Respondents were asked to rate the 17 financial sector companies, excluding GE, listed on the Wall Street Journal's 'subpar earnings' scorecard which catalogs companies that have reported the impact of their subprime exposure. The independent survey drew responses from 1,427 buy-side analysts, sell-side analysts and portfolio managers in databases supplied by Thomson Financial and Ipreo. It was conducted between
Percent of analysts rating company the worst: Citigroup 23% Merrill Lynch 16.9% E*Trade Financial 13.5% Countrywide 12.5% Bear Stearns 7.6% Percent of analysts rating company the best: JPMorgan Chase 13% AIG 11.7% Bank of America 8.4% Wells Fargo 8.4% Bear Stearns 7.3%
The full results are published in Investor Perception Study, US 2008: Winning companies, winning IR strategies. To order a US Investor Perception Study, please contact
About the Investor Perception Study
The IR magazine investor perception studies together make up the world's largest survey of this kind, canvassing more than 5,000 analysts and investors in more than 14 countries and regions. Survey respondents nominate companies in specific categories and offer their opinions on IR-related topics and trends. For more information on the study, please contact
About Cross Border Ltd and IR magazine
Cross Border Ltd is the publisher in New York and
SOURCE IR magazine
Search Our News Using Google Search
Can't find what you want? Try using Google:
