Land of the free (markets): US banks’ strategic rhetoric in response to the financial crisis

Abstract

Despite their role in triggering economic crises, banks remain powerful, influential, and profitable. This study examines how large US banks responded to reputational threats following the 2008 financial crisis. Analyzing shareholder letters from 2000 to 2019, I find that while all banks initially followed traditional impression management tactics, large successful firms like JPMorgan Chase and Wells Fargo shifted strategies during the crisis. They began to use patriotic rhetoric to defend the financial sector as a whole, and they attempted to link patriotism, democracy, and capitalism. The analysis shows how firms use cultural appeals to maintain legitimacy and navigate public backlash during periods of heightened regulatory and societal pressure. More importantly, the findings speak to the current US economic and political environment where we are witnessing tightening linkages between nationalism and capitalism.