Financial PR Firms Walk a Thin Line

By Harry Kimball,  Newser Staff
Posted Dec 22, 2008 6:24 PM CST
Financial PR Firms Walk a Thin Line
Lehman Brothers headquarters in New York.   (AP Photo)

An insider trading case has exposed the potentially problematic relationship between PR companies and corporate clients, and it could have dire consequences for at least one firm, Reuters reports. A Lehman Brothers employee is charged with leaking merger information he got from his wife, a partner at the Brunswick Group PR firm, which has suspended her. “Our reputation is our business,” said a competitor.

PR reps are often privy to confidential data, and that's unlikely to change. Firms are considering tighter controls on where information is stored, and who those privy to it can speak with. One large client has already suspended its relationship with the Brunswick Group. "She probably should be fired because you can't win a debate on confidentiality with clients," one exec says of the partner.
(More public relations stories.)

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