BulletProofBlog the blog on crisis communications

As global economies continue their downward turn, the center of the financial universe is heading south as well - about 215 miles down I-95 to be exact.

For the foreseeable future, the center of gravity in the American financial sector will reside in Washington, D.C. So much so that many of those D.C. hotel rooms left vacant after Tuesday' s inauguration will likely be filled by corporate executives looking to secure their share of assistance from the Troubled Assets Relief Program - also known as TARP - and to do so with a minimum of Congressional scrutiny while they' re at it.

In 2009, Washington is where the money is; especially now that the second $350 billion installment of TARP funds has been released. Barney Frank (D - MA), Chris Dodd (D - CT), Chuck Schumer (D - NY), and the rest of Congress are dispensing it and pushing regulators to keep a close eye on how it is being used. With a new economic stimulus plan thought to be in the vicinity of $1 trillion, the continuing effects of 2008' s assistance efforts, and an urgent need to devise a new regulatory framework for the financial industry, there is every indication that Washington' s influence on the banking and corporate sectors will be far greater today than in decades past.

Companies that hope to prosper inside the Beltway must realize that the game has changed. They must now take a new approach to positioning and communications that integrates public affairs, crisis management, employee communications, and investor relations. Simply put, the ability to lead in a time of unparalleled crisis is surely needed. The only question that remains is: who will act and who will follow?

The ability to make a strong case with a shifting base of key stakeholders will separate the successful from the stagnant or failed enterprise. Management will be held accountable by more than just their boards as to whether or not they can adapt to rapidly-changing circumstances by sending the right messages to the right constituencies with speed and precision.

This year, more than any other, is one in which a strong Washington presence and an even stronger political strategy will be key value drivers in the financial services sector.

The new reality is indeed upon us.