When investors lose faith in management teams after debacles or scandals, they may put stocks of these companies in the ''penalty box.'' Boeing and Wells Fargo are recent examples.
. All three failed to protect their customers' privacy or capitalized on their access to client accounts without approval from them., opening millions of fee paying accounts without consent from its customers. While The Wall Street Journal and the Los Angeles Times had unearthed the relentless cross-selling strategy years earlier, the scandal broke widely in September of 2016 when the Consumer Financial Protection Bureau announced $100 million of fines on Wells.
Since the end of 2018, the stock has climbed over 60%, as investors have forgiven Facebook, or, at least, overlooked its transgressions. Unlike Wells Fargo, which violated an original bank commandment — to keep depositors' money safe — Facebook'sis sharing, not privacy, and its platforms still dominate this market. Also, despite media outcry, the currency of privacy may have a lower value than real money., when personal information on close to 147 million Americans was hacked.
Like Facebook, Boeing is the dominant U.S. player in its field. Once investors feel a higher authority has sanctioned the aircraft, they will likely look forward rather than back.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How Boeing Lost Its WayBoeing arrives at this crossroads in the wake of two crashes within five months, in late 2018 and early 2019, of its best-selling 737 MAX jetliner that took the lives of 346 passengers.
Read more »
NASA to Review Botched Boeing LaunchThe agency wants to know whether broader problems at Boeing contributed to its failure to detect software problems that spoiled the launch of the company’s Starliner spacecraft in December.
Read more »
Boeing astronaut capsule Starliner faces further delays as NASA investigation continuesBoeing's Starliner spacecraft is under heavy scrutiny from a National Aeronautics and Space Administration investigation.
Read more »
Boeing supplier Spirit slashes dividend due to 737 MAX crisisSpirit AeroSystems Inc, Boeing Co's largest supplier, said on Friday it wou...
Read more »
The 60-40 portfolio just doesn't 'cut it anymore' in this market, Wharton's Jeremy Siegel saysThe 60/40 ratio of stocks to bonds may not be working for investors anymore, so Wharton finance professor Jeremy Siegel and WisdomTree are putting up a challenge to the traditional model.
Read more »
House Fires Are Way More Common in Winter—7 Tips to Stay SafeWhen’s the last time you tested your smoke alarm?
Read more »