The Biden Administration & Compliance

Biden

Well, thank the Lord this is ending. The Trump Administration has given the United States (and the world) four years of ignorance, incompetence, immorality, greed, divisiveness, and corruption. President Trump has been a singular menace to this country and the American experiment; and also to corporations that have struggled to navigate the cultural divisions Trump…

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Citigroup, Part IV: Compliance Risk

compliance

We finish our examination of the Citigroup enforcement action with a look at the issue most dear to compliance officers’ hearts: compliance risk, and how Citigroup needs to improve its compliance risk management function to meet regulators’ expectations. First, the backstory. On Oct. 7 the Office of the Comptroller of the Currency levied a $400…

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JPMorgan’s Compliance Benefit

JPMorgan

Well here’s something to take to the board as you’re planning the 2021 budget: the Justice Department hit JPMorgan this week with $920 million in penalties and disgorgement for commodities trading fraud — a penalty that could have been even larger but wasn’t, partly because the bank spent many millions improving its compliance program.  The…

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Wells Fargo’s Staggering Compliance Costs

wells fargo

Wells Fargo filed its latest quarterly report on Tuesday, and you may have seen news that new CEO Charlie Scharf wants to cut back spending on outside compliance consulting dramatically — spending that he described as “beyond anything I’ve ever seen.”  That spending, of course, stems from the seemingly endless number of compliance failures Wells…

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Report on Compliance Functions and Covid

vaccination

A survey of more than 300 compliance officers finds that roughly half of you have been exclusively working from home since the Covid-19 crisis started four months ago — and while that transition hasn’t been as bad as you’d feared, concerns about compliance failures and budget cuts are rising swiftly. So says a report from…

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Justice Dept. Updates Compliance Guidance Again

compliance

The Justice Department updated its guidance for evaluating effective compliance programs on Monday, adding new material about how often a company reviews the structure of its program, a compliance officer’s access to data, and how companies integrate acquisitions into their existing programs.  The department posted the update without fanfare on Monday afternoon, and had made…

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CFTC Stresses Compliance Programs

cftc

The Commodity Futures Trading Commission updated its enforcement manual last week for the first time in 26 years, with a heap of attention paid to the importance of corporate compliance programs when firms are looking to reduce potential monetary penalties.  The update, published as a four-page memo from the CFTC Enforcement Division on May 20,…

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Report: Compliance Resources Getting Tight

budget

The law firm Hogan Lovells just published a report on compliance department budgets and staffing that paints a troubling picture on both fronts. Since budgets and manpower are crucial to any compliance officer’s success on the job, let’s take a look at the details. The broad message is simple. Businesses in North America and Europe…

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Building Compliance at Georgia Tech

Today we have another Radical Compliance podcast interview, this time talking with Ling-Ling Nie about how she is trying to build the first formal ethics and compliance function at Georgia Tech. Nie joined Georgia Tech last March after a distinguished career in the corporate sector. Her objective since then has been to build a formal,…

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SEC Hits Broker on Inept Compliance

The Securities and Exchange Commission has dinged a broker-dealer firm in New York $250,000 for putting an untrained compliance associate in charge of gathering data about stocks the firm offered to clients, and letting traders do business in those stocks without any real sense of how accurate their information was. The firm, Canaccord Genuity Corp.,…

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