New Risk Monitor
UnionBanCal Corp., which has taken aggressive steps to distance itself from a money-laundering gaffe, hired a veteran federal regulator to head its independent risk monitoring group.The San Francisco company, a wholly owned subsidiary of Mitsubishi UFJ Financial Group Inc., said John M. Wied started his new job Monday. Mr. Wied, who was named a senior executive vice president, spent 34 years with the Office of the Comptroller of the Currency. During his tenure, he was part of the OCC's large bank group, and since 1991 had worked primarily with Wells Fargo & Co. and Bank of America Corp. He was previously a regional bank examiner and field manager at the OCC.
"As Union Bank continues to make risk management and compliance an integral part of its culture, John will bring a wealth of experience and a fresh perspective to make our efforts even more successful," Masaaki Tanaka, chief executive and president of UnionBanCal's Union Bank of California, said in a press release. Federal regulators fined the company $31.6 million in September of last year for what they labeled inadequate Bank Secrecy Act practices. Regulators cited a failure to file suspicious activity reports related to a client's attempts to launder money. UnionBanCal said it has improved training and upgraded computer systems to head off a recurrence.
Mr. Wied succeeded William Stolte, who retired after eight years at UnionBanCal, the company said.
Speaking His Mind
Ken Lewis was active this week on the speech circuit, where he blamed irresponsible lenders and consumers for surging debt problems while commending regulatory efforts to stop the bloodbath.The Bank of America Corp. chairman and chief executive said Thursday in Chicago that monoline business models have proven "inherently unstable," though that problem is "taking care of itself" as companies like Goldman Sachs Group obtain bank charters and deposit funding.
In prepared remarks for a speech he was set to give at the Executives' Club of Chicago, Mr. Lewis also cited the "cultural problem" behind the country's spiraling debt, which he noted is outpacing the gross domestic product 4 to 1. He reserved praise for regulators, saying they are doing a decent job of fixing excessive leverage.
Mr. Lewis has taken a bigger role in public policy discussions as his Charlotte company has grown in recent years, and he has not shied away from controversial topics. During a speech Tuesday in Detroit, he said that there are "one too many" U.S. automakers, and that if he oversaw the federal bailout, he would require two manufacturers to merge before offering the industry a $25 billion loan.
