As general counsel James Strother was preparing to take his mandatory retirement at the end of 2016, Wells Fargo & Co. was floundering in a sea of costly legal problems, including an investigation by the U.S. Department of Justice. So the bank’s board of directors decided to waive the rule and extend Strother’s tenure indefinitely.
It’s not hard to understand why. Wells Fargo’s scandal over fake customer accounts may well have been the costliest misconduct to strike a U.S. company in 2016. Just before the New Year, the bank raised its legal reserves from $1 billion to $1.7 billion, according to its filing with the U.S. Securities and Exchange Commission . ( Strother was unavailable for an interview.)
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