Arthur Levitt says seemingly daily scandals highlight the lack of oversight and corporate governance shortcomings of financial technology firms, but two marketplace lending executives responded that more mature companies have just as many problems.
As eye-catching as the scandals at Wells Fargo are, the most shocking thing is that federal regulators have taken no meaningful action against the bank’s executives.
Serving on multiple boards while holding full-time executive positions weakens a director’s ability to fulfill the governance demands at complex institutions.
Jeffrey Seabold, Banc of California’s former vice chairman, alleges that he and ex-CEO Steven Sugarman were scapegoats for inappropriate behavior by certain directors and that the company manipulated its first-quarter earnings.
A law firm hired by the New York Fed board concluded that Dudley’s error was "inadvertent," and that while it violated the reserve bank's own code of conduct, it did not violate federal statutes.
A Federal Reserve proposal acknowledges that good board governance results from directors being credible overseers of strategy instead of a redundant form of management.
The exodus of chief executives from two of President Trump’s business advisory councils in the aftermath of the Charlottesville tragedy was a highly visible example of risk management and cultural principles in action.
