Tagged: wells fargo

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...

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....

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...

After Circling the Wagons: Wells Fargo’s CEO Finally Falls

The Wells Fargo scandal represents a textbook case of compliance and culture failures. Recently, the scandal and Wells Fargo’s defensive crisis management strategy resulted in CEO Stumpf’s resignation. Stumpf’s demise was inevitable. He will go down in history as the only CEO of a major bank forced to resign in the aftermath of a public scandal. It is important to review what happened at Wells...