Sugerman Ethical Issues

Summary “Why would a bank you’ve never heard of buy stadium naming right from a soccer team you’ve never heard of for $100 million?” The authors: Jennifer Surane, Zeke Faux, and Dakin Campbell summed it up very well on page 38 with the above question, which can also be found in the Bloomberg Businessweek September 12-18, 2016. This all started ten years back when Mr. Steven Sugarman was a former investment adviser with Lehman Brothers. During this time Sugarman also co-wrote a book regarding stocks and avoiding losses. A major tip from that book said “Beware of companies run by family and friends.” After fast forwarding to now, Sugerman is the CEO of Banc of California. This brings us to the issues that the company is arising, with different marketing strategies, acquisitions, and a few other ethical issues. The first issue that is brought up in the article is Banc of California funded $100 million of the $350-million-dollar project. On the marketing stand point this is a great way to get the name out and the logo well know. The arises when looking deeper into the situation, …show more content…
From putting up the $100 million on the soccer stadium, to generating publicity from different buy outs of companies, all which have grown the bank. Even though they may not have been the most ethical, the Bloomberg article This Bank’s Stadium-Naming Deal Has a Family Connection shows a chart on page 39 of the growth rate. “Banc of California is growing currently at 1,052% (Bloomberg page 38).” The chart shows the next closes is BofI Holding growing at 435%, and due to this rate of growth, it is getting the company out there (Publicity) even more. A great example is the Bloomberg article its self, having done an article on Banc of