Scribd: Effective or Ineffective Communication Strategy?

In October 2009, Bank of America decided to waive its attorney-client privilege and release information about the legal advice it received from its outside lawyers regarding the merger. This was a belated attempt at disclosure. And with the help of the Internet these internal documents spread fast. They were posted on the social publishing site www.scribd.com. Direct links to these Scribd documents were embedded in online newspaper and magazine articles as well as posted on blogs. The public now had immediate access to Bank of America’s internal correspondence and quickly bloggers speculated about the company’s true motive in the Merrill Lynch merger. The released emails clearly detailed the company’s desire for government assistance and proved that upper management was very aware of the losses it would be incurring in acquiring Merrill Lynch.

Interestingly, this strategy drew more negative press than the company anticipated. Shareholders saw it as too little too late, and legal bloggers found the decision to be unconventional. The website was definitely an effective way to give the public all the information in the case. Unfortunately for Bank of America, the information did not portray the company in the best light. It would have been a super effective communication strategy in a crisis if it clearly illustrated the company’s innocence. As this was not the case, the idea was met with mixed reviews on effectiveness.

http://dealbook.blogs.nytimes.com/2009/10/19/bank-of-america-e-mails-shed-light-on-merrill-deal/