Category Archives: Compliance

Wells Fargo, again

“Wells Fargo Gets New Warning,” The Wall Street Journal, November 30, 2017 B1.  Feds may take enforcement action over the company’s auto-insurance and mortgage operations.

Will the shoes ever stop dropping at Wells Fargo?  Once you are shown to be non-compliant, do you get stuck under the regulatory microscope?

How’s that suit against the directors going?

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Filed under Board, Compliance, Compliance, Compliance Verification, Controls, Corporation, Culture, Directors, Duty, Duty of Care, Employees, Governance, Internal controls, Oversight, Oversight

Covert units

It’s a bad sign when you establish a covert unit.

“Uber Formed Covert Unit to Steal Trade Secrets, Ex-Employee Says,” The Wall Street Journal, November 29, 2017 A1. According to a former security employee, Uber “had a team dedicated to stealing [competitors’] trade secrets and helped employees dodge regulators’ scrutiny.”

This information was in a letter read to the jury in the Alphabet/Uber trade secret litigation.  Ouch.

What does it say about the company’s commitment to compliance with law (including the rights of others)?  Are RICO charges far behind?

If Uber loses the case, will shareholders sue the directors who allowed this to happen?

 

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Filed under Board, Compliance, Compliance, Controls, Corporation, Culture, Culture, Directors, Duty, Duty of Care, Employees, Governance, Internal controls, Management, Oversight, Oversight, Supervision

Cyberattacks

“Three From China Indicted in Cyberattacks,” The Wall Street Journal, November 28, 2017 B4.  Allegedly hacked into the email account of an economist at Moody’s and gained access to gigabytes of confidential data of Siemens beginning in 2011.

Who has access to your data?  Is the email account of a third-party vendor a potential source of a major leak?  Even an economist?

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Filed under Access, Compliance, Controls, Corporation, Duty, Duty of Care, Employees, Governance, Information, Interconnections, Internal controls, IT, Oversight, Protect assets, Security, Third parties, Value

Was your ride late?

“Chicago Sues Uber For Lag in Reporting Data Hack,” The Wall Street Journal, November 28, 2017 B4.  Following the disclosure of the year-old breach of 57 million accounts, Uber is sued for consumer fraud and deceptive business practices, among other things.

There is the breach.  And then your response to the breach.  And then the regulators’ and the customers’ and the shareholders’ response to the breach.

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Filed under Communications, Compliance, Controls, Corporation, Directors, Duty, Duty of Care, Employees, Governance, Information, Internal controls, Investor relations, IT, Oversight, Protect assets, Security, Supervision, To report, Value

Wells Fargo, continued, again

“Wells Fargo Bankers, Chasing Bonuses, Overcharged Clients,” The Wall Street Journal, November 28, 2017 A1.  Only 35 of 300 companies had been charged only what they had agreed to.  Four foreign-exchange bankers fired.

Who is surprised?  The culture at the company was potentially fatally defective.

Why hasn’t the Board been held liable?  The directors utterly failed in their fiduciary duties.

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Filed under Board, Compliance, Compliance, Compliance Verification, Controls, Corporation, Culture, Culture, Directors, Duty, Duty of Care, Employees, Governance, Internal controls, Oversight, Oversight, Protect assets, To report

Why listen to the court?

“Battle at CFPB Rages On,” The Wall Street Journal, December 4, 2017 B9.  The person who lost in her attempt to seize control of the CFPB despite the appointment of Mick Mulvaney as the head of the agency asks the court to do “a more complete legal assessment of her claims.”

I guess if you don’t like the first decision, you might as well ask again, right?

Governance involves having a clear idea of who governs.  I suspect the court will clarify the matter for her and her lawyer.

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Filed under Compliance, Controls, Duty, Employees, Governance, Ownership, Third parties

More executive firings

“Security Shake-Up At Uber,” The Wall Street Journal, December 4, 2017 B4.  Three members of Uber’s security team resigned.  Voluntarily.  And another is on extended medical leave.

This after Uber recently disclosed a data breach a year ago that exposed 57 million user accounts.  And after reports of a team established to access competitors’ technology.

Culture, anyone?  Or attempts to protect the brand at the expense of employees?

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Filed under Compliance, Controls, Corporation, Culture, Duty, Duty of Care, Employees, Governance, Internal controls, IT, Oversight, Protect assets, Security