Reputation Risk and the Finance Industry: Will the LIBOR Fraud Turn into “The Tobacco Moment&#
Especially in these times of economic uncertainty, the global finance industry does not needs the LIBOR fraud debacle. But it’s very real, very in the news, and very hard on industry credibility, as illustrated in various ways here and here. As a result, even the Economist is talking about the LIBOR debacle in extreme terms, saying: "This could well be global finance’s “tobacco moment.”
The point for litigation? An entire industry can quickly lose reputation and trust based on the acts of just some members of the industry. Business and litigation judgments need to be taken bearing in mind the reality that no one really is an island, even if it feels good to think otherwise.