The 4 Dog Defense: Bank PR at its most pernicious

Disclaimer: This article is for educational purposes only. It is not legal advice. Always consult with a licensed attorney about your specific situation.

The Playbook That Never Fails

In the 1950s, as evidence mounted about the dangers of tobacco, the industry rolled out a PR strategy known as the Four Dog Defense. Soon after, the chemical industry adopted it. And in the last two decades, Wall Street has perfected it.

The premise is simple: when caught selling toxic products (whether cigarettes, chemicals, or mortgage-backed securities), deny, distract, and shift blame until the outrage dies down. It worked for tobacco. It worked for chemicals. And, unfortunately, it has worked for the banks.

But Wall Street has added a twist — what we might call the “fifth dog.”

The Four Dog Defense (Wall Street Edition)

1. My dog doesn’t bite.

“Our products are safe. The loans were standard. Nothing to see here.”

Banks, like Big Tobacco, first denied that there was any harm. Reports from “independent” but bank-funded groups claimed mortgage products were safe. Between 2001–2009, homeowners were told they were simply getting “standard loans” with “standard foreclosures.” The trusts supposedly holding those loans? Never mentioned.

2. My dog didn’t bite you.

“Okay, maybe some harm exists, but it didn’t happen to you.”

When evidence piled up, Wall Street admitted some risks existed, but reassured the public they were “contained.” Treasury Secretaries Paulson and Geithner, along with Fed Chairs Greenspan and Bernanke, downplayed the crisis. In foreclosure cases, this translated into: “Sure, there are trusts. Sure, things were sloppy. But that doesn’t concern you, the homeowner.”

3. My dog bit you but didn’t hurt you.

“Yes, harm occurred, but it wasn’t serious.”

As more people lost homes and life savings, the banks shifted again: “So what if the loans were predatory? You got your money, investors got their returns — where’s the harm?” Courts pushed thousands of cases through “rocket dockets,” ignoring whether the parties foreclosing even had a legal interest in the debt.

4. My dog bit you and hurt you — but it’s your fault.

“You chose the toxic product, so blame yourself.”

Investors “should have known better” than to trust Wall Street. Borrowers “should have known better” than to take the loans. In court, the argument became: “Even if the trust never owned the loan, even if the servicer had no rights, you didn’t make your payments, so the foreclosure is valid.”

The Fifth Dog: “We Keep the Money, No Consequences”

Wall Street’s extra layer is perhaps the most brazen:

“Even if we broke the law, we keep our profits. We face no rescission of illegal deals. And the system must protect us, or the economy collapses.”

This logic led to multibillion-dollar settlements where banks paid fines that were a fraction of their profits, without admitting wrongdoing. Meanwhile, the two real parties in interest — investors and homeowners — were excluded from settlements and courtrooms alike.

Fear as a Strategy

Finally, the banks use intimidation. By warning that holding them accountable could destabilize the economy, they scare regulators, courts, and even the public into backing down. It’s a tactic summed up in one phrase:

“Scare them enough, and they’ll let us walk.”

The Takeaway

The Four Dog Defense — now with a fifth — is not about truth. It’s about delay, distraction, and survival at any cost. Tobacco used it. Chemicals used it. And Wall Street has weaponized it on a scale that dwarfs them both.

Until courts, regulators, and citizens demand accountability, the same playbook will keep working — at our expense.

Need Help With Your Case?

Call us today at 844.583.5339
Submit your case statement online for a complimentary recommendation.
Visit LivingLies.me for resources and case insights.

Posted in Bankruptcy, Corruption |