Execs Continue to Deny the Undeniable': Comments of the Week

In response to Wells Fargo executive David Galasso claiming he had never witnessed phony account openings:

"This is a leadership failure, not a regulatory issue. The infuriating thing is that executives continue to deny the undeniable, arrogantly insisting that there was nothing wrong with the culture and management. Does the board get it, or are they in denial too? By the way, it is inconceivable that out of the tens of thousands of employees Galasso has overseen, not one has ever been terminated for not meeting sales goals."

Another reader's reaction to the Wells Fargo exec's claim:

"The executives should be fined and jailed for their behavior. It is time for major ethical and legal change in the behavior of banking industry executives. Stop placing the burden of compliance on the employees and start focusing on the source of the problems--senior executives and management."

In response to a new housing finance reform plan by Edward Demarco, a former top regulator of Fannie Mae and Freddie Mac:

"So now Mr. Demarco wants to abandon the common securitization platform, a very expensive science project which was his idea in the first place, and that he directed the GSEs to undertake, in favor of using the GNMA platform. Why didn't he think of this when he was their regulator? Might have saved a few hundred million dollars!"

On how to diversify boards:

"Rather than focusing on CEO status or specific degrees, boards must evaluate skillset. Forbes explains effective board members exhibit keen judgment, business knowledge, collaborative communication, critical thinking, and active listening. Capable people that are advantageous employees embody these abilities regardless of whether they are in the C-suite. Likewise, executive titles do not warrant those qualities. Considering candidate skill rather than specific experience will expand eligibility, thereby removing diversity barriers."

On attorneys general from 18 states arguing against the CFPB's payday plan:

"Please mandate basic economics classes for these banking regulators and attorneys general. Arguing whose price controls are better for consumers is inane. Price controls in any product, including credit, only insure that the people that need it most can't get it."

On the ripple effects of Wells Fargo's cross-sales scandal:

"The problems at Wells Fargo are a clear reason for all financial institutions to examine their incentive programs and ensure they are designed to drive the desired behaviors and that solid controls are in place to prevent issues like this from arising. With good incentive plan design and controls we certainly can have sales goals and still act in the best interest of our clients in terms of the products and services we offer them."

Related Article: Can Tim Sloan Fix Wells Fargo?

In support of a call for more scrutiny of the Office of the Comptroller of the Currency in the wake of the Wells Fargo fraud:

"If it weren't for California authorities, the OCC and CFPB would still be proactively ignoring consumer complaints about this bank. The OCC's reputation as the Friendliest Bank Regulator is well-deserved, especially now that [it] has absorbed the OTS."