Big banks are in a battle over new trading rules now being considered in Washington, and they’re in a tough spot. Not only are the banks deeply unpopular, they are also up against a regulator who knows how to sling an effective sound bite.
Gary Gensler, Chairman of the Commodity Futures Trading Commission, has been pushing hard for new rules that would force additional reporting of banks’ overseas trades. Banks have called the proposals redundant and costly. It’s a complicated issue that has been the focus of an intense tug-of-war between the Commission and bank lobbyists for months.
But Gensler captured the essence of his position in a brief quote, which appeared in the New York Times:
“It would be letting down the American public if we said, we are just about to complete the task but now, let’s retreat,” Mr. Gensler said in an interview. “If we don’t do this right, we will blow a hole in the bottom of the boat of reform.” (Emphasis added.)
Boom. “Blow a hole in the bottom of the boat of reform” is a powerful way to frame the issue. It’s a simple yet memorable phrase – the mark of an effective sound bite. It also fits the popular narrative that big banks are determined to oppose new regulations in order to preserve their resurgent profits.
Now contrast Gensler’s quote with the one from Ken Bentsen, a financial-industry lobbyist:
“We should all care, because that cost will have to be passed on, in the form of higher prices for products sold to consumers or a lower return for investors.”
Well, that response certainly has been the position of the banks all along, but it isn’t very memorable and it definitely isn’t colorful. And it does nothing to challenge the prevailing narrative. He would have done better to craft a lively sound bite instead.
Here’s another noteworthy example from the past week. This time the issue is the proposed bill to require online retailers to collect sales taxes, which is opposed by eBay.
Brian Bieron, Senior Director, U.S. Government Relations and Global Policy at eBay Inc., in an email after the Senate moved ahead on a bill to allow states to force online retailers to collect sales tax, [said]: “If Keyser Soze is right, and the greatest trick the devil ever pulled was convincing the world he doesn’t exist, then the second greatest trick has been pulled by the proponents of the Marketplace Fairness Act to convince liberals to abandon their traditional support for small businesses. (Emphasis added.)
Whew, that’s a mouthful. It’s not quite a sound-bite, really, more of a long-winded analogy. Analogies are good rhetorical tools, too, but they are best when brief. Tellingly, this one didn’t make it into news reports.
Good communication can make the difference in a close fight, whether it’s over a public-policy issue, a shareholder proposal or a lawsuit. Analogies and sound-bites are essential tools when communicating on critical issues – and what effective risk communication is all about.