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Does your board have a compliance expert?

Tom Fox | February 11, 2018

The Federal Reserve Bank this month assessed a penalty against Wells Fargo for the bank’s widespread customer abuse from its fraudulent accounts scandal, other regulatory violations, and lack of response by the bank’s doard of directors to these problems and other risk management issues.

Additionally, Wells Fargo must elect new board members. Estimates of this financial penalty could range between $300-$400 million in lost revenue, far above the $185 million fine levied against the bank in 2016.

This fine is something every chief compliance officer should bring to the attention of their board of directors. While there are obvious distinctions for publicly and privately listed companies, the precedent of a regulator sanctioning an entity for the failures of its board is now set. Once a precedent is set, it can be more easily used a second time.

Over the past year, the... To get the full story, subscribe now.