How To Recover From A Scandal?...Just Call It "Board Refreshment Actions"

 Wells Fargo makes sweeping board changes after scandals

15.08.2017 2:48pm PDT

Mark Calvey Senior Reporter San Francisco Business Times

Wells Fargo has taken what it calls “board refreshment actions” as it struggles to right the ship from a series of scandals that have damaged its once-sterling reputation as Main Street’s bank.

Bloomberg News had this to say back in July:
The entire board at Wells Fargo received less than 80 percent support this year, including four with less than 60 percent support.
Wells Fargo’s board faced pressure from investors because of its failure to prevent a scandal that led to the bank being fined $185 million by regulators in September for opening retail bank accounts without customer approval

"Board Refreshment Actions"
IS THIS BEING FORCEFUL ENOUGH?
The San Francisco-based bank said that Vice Chairman Betsy Duke will succeed Stephen Sanger as independent chairman effective Jan. 1.

“The changes announced today reflect a thoughtful and deliberate process by the board that was informed by the company’s engagement with shareholders and other stakeholders, as well as the board’s annual self-evaluation that was conducted after the 2017 annual meeting and prior to its typical year-end timing,” said Sanger in a statement. 

Reporter Mike Calvy adds this note:

"Wells Fargo is trying to recover from a fake accounts scandal in which up to 2 million credit and deposit accounts were opened without customers’ authorizations. Wells said this month that there may be a “significant increase” in the number of customers affected as it expanded the scope of its internal investigation.

Last month, the New York Times reported that the bank improperly placed insurance on auto loan borrowers, triggering repossessions and tarnishing credit records.

"We view the changes to the board as necessary to help the company move forward from the its sales practice issues," Gerard Cassidy, a banking analyst with RBC Capital Markets, said in a note to clients.. . "
But today’s changes may do little to quell calls for more changes in Wells Fargo’s boardroom, C-suite and corporate culture that allowed such misbehavior to persist for years.

Critics of Wells Fargo, including U.S. Sen. Elizabeth Warren, are calling for more than a “refreshment” of the bank’s board. Warren sent a letter to Federal Reserve Chairman Janet Yellen calling for the regulator to oust most of the bank’s board

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