Currency tradingWashington Mutual, AIG
As large companies begin to find themselves in a financial turmoil that leads to takeovers, the public becomes increasingly disillusioned with corporate America. In fact, the US corporate image has become somewhat tarnished as one by one corporate giants come tumbling down. Not only has consumer confidence begun to waiver as the government steps in, practically shouting out that corporate America needs Big Brother to step in and save the day, but also, corporate confidence is becoming bold with the assumption that free money is going to continue flowing from governmental sources.
Unfortunately, corporate America has begun to show a flagrant disregard for taking responsibility for their errant ways. Americans and the rest of the world are beginning to realize that corporate America is almost brazen in their defiance of the safe and steady path which they have replaced with the quick two step from no money to lots of money. Unfortunately, this has been a short-lived scenario that is now costing US taxpayers where it hurts the most- their wallets and pocketbooks, not to mention their retirement plans.
Washington Mutual, one of the largest financial providers in the US, recently fell from its perch of security. Seized by the government and partially taken over by another of the financial giants, JPMorgan Chase Bank, Washington Mutual is faced with the fallout of disappointed and disillusioned consumers.
These same consumers along with many who aren't even affiliated with Washington Mutual now wonder if they were mistaken to believe in the security of such a corporation just because of its reputation and size. The manner in which US citizens in particular and the world in general look at corporate images in America has changed. What was once faith and well-founded trust has been taken over by mistrust and well earned suspicion.
AIG or American International Group Inc. is another of the corporate giants to take the tumble downward. Once one of the world's largest insurers, AIG is currently looking to compensate its executives with bonuses and severance payments from the government bailout.
However, New York Attorney General Andrew Cuomo has placed a hold on these payouts until taxpayers are able to recoup their personal AIG investments. Even though the government has been able to tighten the reins and stop AIG from pillaging the bailout funds, everyone else knows what AIG executives were planning. Mirror, mirror on the wall, which corporate image is causing a ruckus now?
Impeccable reputation notwithstanding, Lehman Brothers Holdings Inc. has fallen along with the rest of the big corporate giants and is facing the same trust issues. Suspicion over the veracity of every statement that Lehman Brothers has made to its analysts is propelling an investigation by Federal prosecutors. While the public in general must be pleased to see that even the mighty members of corporate America are not immune to investigation, nonetheless, the public must also be disappointed that yet another face of corporate America is portraying a not so favorable image. The reality is that even when this debacle is over, certain corporate images will remain tarnished and numerous others will become suspect.