By now, you’ve heard about the phenomenal crash of investment bank Bear Stearns–a multi-billion dollar valuation now worth just $236 million.
What’s interesting is how the rumors of the company’s demise quickly escalated the week before the eventual collapse. I spoke with TheStreet.com’s Elizabeth Blackwell about the importance of companies monitoring the web for the increase in online chatter and rumors.
“The worst thing a company can do is stick its head in the sand and say they’ll release information when they’re ready,” he says. “The market makes that decision for you.”
One of Bears’ key mistakes may have been to ignore the rumors for too long. By the time the CEO appeared on TV, it was too little, too late.