Category Archives: Board of Directors

Does Board Independence Reduce Informed Short Selling Prior to Earnings Announcements? Evidence from Quasi-Natural Experiment

By | October 16, 2019

Courtesy of Suchismita Mishra, Anisur Rahman, and Arun Upadhyay In a new paper, we argue that the transparency created by independent boards prevents informed short sellers from taking advantage of nonpublic information, and thus results in a lower likelihood of surprise predictions of informed short selling prior to upcoming earnings announcements. Short sellers—those who sell… Read More »

Danske Bank Money Laundering Case Study

By | September 11, 2019

Courtesy of Lee Reiners and Joseph A. Smith Jr. This case study draws primarily—and in some instances quotes verbatim—from the “Report on the Non-Resident Portfolio at Danske Bank’s Estonian Branch” prepared for the Bank on September 19, 2018, by the law firm Bruun & Hjejle.[1] Additional details are derived from other sources, including Danske Bank… Read More »

Carillion Plc: A Governance Case Study from the UK

By | July 18, 2018

Courtesy of Joseph A. Smith Jr. At year-end 2016, Carillion Plc (Carillion or the company) was, in the words of its annual report, “one of the UK’s leading integrated support services companies, with a substantial portfolio of Public Private Partnership projects, extensive construction capabilities and a sector-leading ability to deliver sustainable solutions.” [1] The company… Read More »

What Should We Expect of Bank Directors? It Depends on Whom You Ask

By | March 21, 2018

Courtesy of Joseph A. Smith Jr. In August, the Board of Governors of the Federal Reserve (Fed) issued for comment a release entitled “Proposed Guidance on Supervisory Expectation for Boards of Directors” (Proposed Guidance).[1]  This note will briefly review the Proposed Guidance and the comments the Fed received on it.  I will focus primarily on… Read More »

Response to the Federal Reserve’s Proposal to Enhance the Effectiveness of Boards of Directors

By | August 29, 2017

Courtesy of Joseph A. Smith Jr. On August 3, 2017, the Board of Governors of the Federal Reserve System (“Federal Reserve”) released a proposal regarding its supervisory expectations for the boards of directors of bank holding companies, savings and loan holding companies, state member banks, U.S. branches and agencies of foreign banks, and non-bank systemically… Read More »

Wells Fargo Unauthorized Account Openings: A Case Study for Bank Board Directors

By | April 26, 2017

Courtesy of Joseph A. Smith Jr. and Lee Reiners This case study draws primarily – and in some instances quotes verbatim –  from the 113 page report of the Wells Fargo board’s independent investigation of retail banking sales practices.  The case study also relies on the Office of the Comptroller of the Currency’s report titled:… Read More »