It’s always interesting to see how a regulatory body will respond in the midst of a crisis given that they are the ones who pretty much dictate everything within an economy admist the harsh external environmental factors.
MAS finally responded on the 17th of Oct to complaining investors who had funds tied up in Lehman Brother’s and were sold to them by local banks.
Local banks have responded to the call of MAS, DBS being one of the banks.DBS has already started compensating investors.
The response that MAS has given to the financial crisis can be summarized as follows:
- Said that it was changing tack by giving the public more information on what has been done behind-the-scenes;
- • Identified those investors (lowly-educated retirees) who needed immediate attention
- Cracked the whip publicly on the financial institutions that sold the structured products to the common man, by telling them not to be “overly legalistic” in their approach;
Yet the responses have been varied amongst the media. Looking at Today, its general impression was that of MAS taking a progressive step forward from passive to active. (Like a regulatory body is suppose to do).
You can read more about the article here on what it had to say and quotes from experts on the subject. Yet, there are others who think MAS can do more with the power vested in them in such turbulent times.
A post on MAS being a headless chicken and taking cues from Hong Kong are such an example.
Action is being taken by MAS, despite is quiet initial start. It has worked with its main stakeholders, the banks, to pacify the public. This can be seen when the banks have each set up a a panal.
“…to headed by an independent person, respected individuals, so as to make sure this is a fair and serious process,’
I’m sitting on the side of the fence that the MAS has done a pretty good job in stepping forward. There are of course a whole host of external factors to take into consideration but the communications implicates a change in the way of thinking.
I’m now thinking of how the different panels of the banks can be collaborating online with secure firewalls to protect the flow of information. To address the employees on the progress so they don’t start self promoting themselves to being the head of corp comms and rubbish out rumors to media and other stakeholders.
This is a great opportunity for internal social media to come into the works. Considering how bank departments are so used to working in silos.
It would also be a great stepping stone to see if the demands MAS has placed on the banks are reasonable and effective. Then it would be easier to address the shareholders, investors, potential customers, the media and general public. We could even take this approach overseas and see how the US or Europe if it works!
I’m sure the Investor Relations guys will welcome this idea.
What other suggestions can you think of to use social media in this context? Do share!