An American financial services company based at San Francisco, Wells Frago (NYSE: WFC) has been straightened in front of Congress lately. The reason includes the ineffective working of the Board of Directors.
Rachel Louise Ensign and Andrew Ackerman write in the Wall Street Journal:
“Washington has claimed its second Wells Fargo. chief executive.”
“John Stumpf quit the bank 13 days after a brutal appearance before Congress. His successor, Timothy Sloan, lasted 16 days before stepping down. When Mr. Stumpf went to Congress in 2016 after a sales scandal erupted at Wells Fargo, he blamed low-level employees and gave evasive responses. Eager to avoid his predecessor’s missteps, Mr. Sloan prepared for his most recent appearance before Congress by sounding out lawmakers and showcasing the bank’s efforts to regain customer trust.”
Everyone believes the reason for this heat is the Board of Directors and they are one who should face diatribe. They should take accountability for securing shareholders from executive malfeasance or any criminal behavior. This liability is of prime importance and should not be taken subtly.
The condition of the Walls Frago has been reckless and matter of negligence. This is not appropriate the world’s fourth-largest bank by market capitalization or also any other banking entity for that matter.
Now California has lifted the ban on working with the bank and the Walls Frago has responded as, “Our commitment to California has never wavered and we are pleased the state recognizes the progress we’ve made in the past two years to become a better bank,” Jen Hibbard, a spokeswoman for the company, said in an emailed statement. “Wells Fargo is proud to continue to provide the best and most cost-effective services for the benefit of Californians.”