Former Wells Fargo CEO John Stumpf just paid $2.5 million in civil fines. Is the bank’s fake-account scandal finally over? Not for shareholders. The Fake Account Scandal People may remember the nationally televised @ss whuppin’ Senator Elizabeth Warren delivered to then Wells Fargo CEO John Stumpf. On Stumpf’s watch, 5,300 Wells Fargo employees opened as …
Five ex-Kodak executives collected millions of dollars selling stock options they didn’t own. Then the story gets worse. (Under)statement from Mr. Know-It-All In a press (under)statement, Kodak Finance Chief David Bullwinkle (yes, Bullwinkle) said that the company had discovered deficiencies in its controls that had failed to prevent the unauthorized issuance of the company’s stock. …
Ethical contracting doesn’t just happen. You have to think through each side’s business goals and vision for the relationship, as well as contractual incentives and processes to keep the parties working together. Many thanks to Leadership Talk Series Host Manish Pathak for a great conversation! For those interested in a battle-tested approach to deal-making and …
Purdue Pharma has given up the ghost. The company faced $2.2 trillion in state and consumer claims, as well as $18 billion in sanctions from the federal government. The company will be reborn, but as what? Balrogs v Trial Lawyers Yes, Middle Earth has its wizard-killing Balrogs. But what creatures, for bloodthirsty, flesh-ripping rage, can …
The Rebirth of Purdue Pharma: Gandalf or Saruman? Read More »
COVID shifts compliance-hotline calls in weird ways. Can you solve the mystery? Yesterday, I spoke with the Director, Ethics & Compliance of a major U.S. manufacturer. She told me that calls to her company’s compliance hotline have not lessened, but the wrongdoing has shifted from fraud and harassment to COVID protocol violations. At the same …
For managers, ethical behavior depends not just upon the decision itself, but the processes and the purposes behind the decision. Taking a Stand in Expensify’s Name Using company letterhead, Expensify’s CEO, David Barrett, sent 10 million users a sharply worded email encouraging them to vote for a particular Presidential candidate, and against another. Did Barrett …
Resembling fiddler crabs, senior Goldman executives seem to take with the giant claw, and to give back with the tiny one. A previous post described Goldman Sachs getting hit with over $5 billion in fines and disgorgement sanctions. These penalties relate to two senior Goldman bankers’ participation in a multi-billion-dollar bribery and embezzlement scheme. Taking …
Goldman Goldman Sachs admitted wrongdoing in a bribery scandal and will pay over $5 billion. When senior executives break bad, the key question isn’t “Why?” but “When?” To see how your own company compares, take the the “Bagel Test”! Greed & Graft Goldman Sachs recently signed a deferred prosecution agreement with the federal government. The …
The New 5G: Goldman, Greed, Graft, Gupta & Grift Read More »
There’s a dirty secret at the heart of corporate governance. Governance rules don’t create value. They only prevent it’s destruction. A business with perfect governance that doesn’t make money is worthless. So, how should we keep our eyes on the ball? What Makes a Business Valuable? A business is worth the returns it makes for …
The federal government just fined JP Morgan Chase $920 million. And that’s because the feds decided to go easy on the bank. Now, as part of the settlement, JP Morgan must adopt the anti-fraud methods of a Mob bookie and casino boss. “Spoofing” Markets through Bogus Orders JP Morgan traders unlawfully manipulated the market through …