Tagged: wells fargo

26 Jul, 2023

Enforceability of Clawback and Compensation Penalty Provisions (Part II of II)

We often read about lucrative bonus payments made to CEOs and other senior executives. With refinements in corporate governance structures, shareholders and investors are raising concerns over executive bonuses. To bring balance to the equation, companies have to punish executives through clawbacks for misconduct. The Wells Fargo scandal is an example of how clawbacks can be effectively used to punish wrongdoing. In the aftermath of...

Podcasts

10 Apr, 2023

Episode 269 — Deep Dive into the Wells Fargo OFAC Sanctions Settlement

Wells Fargo added to its Grand Slam of Enforcement with its recent settlement of OFAC violations and paid $30 million to settle the matter. Wells Fargo’s violations occurred during a seven-year period, 2008 to 2015, and stemmed from its acquisition of Wachovia Bank. Wells Fargo provided a foreign bank (part of predecessor Wachovia) with trade-finance software that Wachovia used to process trade financing transactions with...

General

5 Apr, 2023

Wells Fargo Fumbles Sanctions Compliance Demonstrating An Absence of Culture of Compliance (Part II of II)

Not that I am a glutton for punishment, but I always find enforcement actions to supply a number of valuable lessons learned. There are always instructive nuggets of information, opportunities missed, and root causes that highlight important compliance messaging and principles. Wells Fargo has unintentionally provided a variety of these important lessons — not from positive behaviors but from a laundry list of violations that...

General

3 Apr, 2023

Wells Fargo Pays OFAC $30 Million to Settle Sanctions Violations (Part I of II)

In our lifetime (however long or short), there is no way any company will ever match Wells Fargo for its record of misconduct, criminal and civil enforcement, and regulatory fines and penalties. No one, no way. Wells Fargo added to its Grand Slam of Enforcement with its recent settlement of OFAC violations and paid $30 million to settle the matter. Wells Fargo is a one-entity...

General

30 Mar, 2023

Carrie Tolstedt, former Wells Fargo Community Banking Head, Agrees to Plead Guilty and Pay a $17 Million Fine for Obstruction of Regulator’s Investigation

If there ever is an example of a rotten corporate culture, Wells Fargo sits at the head of the class. Since Wells Fargo’s sales pressure scandal, Wells Fargo has continued to suffer from a string of scandals and misconduct. Along the way, and notwithstanding spending millions on lawyers, consultants, accountants and other professionals to fix its culture and controls, Wells Fargo still has not recovered. ...

General

10 Aug, 2022

Wells Fargo’s Woes Continue — A Rotten Culture that Continues to Stink

It is hard to write yet another posting about Wells Fargo’s misconduct. Wells Fargo’s troubles continue unabated. I am not exaggerating — I promise. Every few months, we hear about another problem, another enforcement action, another uncovering of misconduct. I do not intend to attempt to even recount all of Wells Fargo’s horrible history. We all know it, and like a rotten fish, we all...

General

24 Feb, 2020

Wells Fargo Settles With Justice Department for $3 Billion

This year, 2020, has been an enforcement year opening with billion-dollar settlements: first, Airbus settled FCPA charges for $4 billion, and now Wells Fargo for $3 billion. What a start to an enforcement year! We all have heard about the Wells Fargo debacle, and I have written repeatedly about Wells Fargo’s blatant misconduct. Wells Fargo has defined itself as a company lead by rotten senior...

Uncategorized

18 Feb, 2018

Episode 26 — Federal Reserve Blocks Wells Fargo Growth In Response to Governance and Risk Management Disaster

In an unprecedented action, on February 2, 2018, the Federal Reserve restricted Wells Fargo’s ability to grow its business until it implements comprehensive improvements to its board governance and risk and compliance systems. Citing Wells Fargo’s poor record of governance and risk management resulting in the community banking sales incentive scandal and continuing problems at the bank, the Federal Reserve imposed detailed governance and risk...

General

24 Jan, 2017

The “New” Face of Corporate Misconduct

As we look across the corporate governance landscape and focus on the spikes of corporate scandals, I started to wonder if there was any pattern or trend to the nature of corporate scandals. In the early 2000s, the country was rocked by financial accounting scandals and massive fraud in corporate reporting. In response, the Sarbanes-Oxley reforms were enacted, transforming the auditing and financial reporting requirements....

General

18 Oct, 2016

DOJ Criminal Prosecution of Wells Fargo: What to Expect?

Compliance and enforcement headlines have focused on the Wells Fargo scandal. And for good reason. On September 8, 2016, the Consumer Financial Protection Bureau, the Comptroller of the Currency and the Los Angeles County Attorney announced the regulatory settlement against Wells Fargo. The enforcement action included a detailed discussion of the facts. What was interesting in the public announcement was that the Justice Department had...