TARP Watchdog Calls For Bank CEOs To Certify Fraud Not Happening At Company

Chris Gaetano
Published Date:
Oct 26, 2016

Christy Goldsmith Romero, the special inspector general of the Troubled Asset Relief Program, has called for Congress to pass a law that would require bank CEOs to certify that no criminal or civil fraud has occurred during their tenure, with the added mandate to renew this certification each year, according to Bloomberg. She feels that this would make it easier to hold CEOs to account, as the certification would provide a strong incentive for executives to take ownership of what happens at all levels of their organization. Bloomberg notes that it would also make criminal intent easier to prove, as executives who learn of misconduct at their bank and sign the pledge anyway would have fewer protections than they do now. It also pointed out, however, that such a measure would probably be contentious and likely would not pass the current Congress. 

Such a pledge might have made a difference in the Wells Fargo case, which the former CEO blamed mostly on low-level workers. The new CEO, Tim Sloan, said that it was inappropriate for upper management to dodge responsibility, and wrong to place the blame at the feet of low-level workers, many of whom make less than $15 an hour, according to CNBC

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