Do Lawyers Make Better CEOs Than MBAs?
The bad news keeps coming for Wells Fargo. A nearly $150 million settlement is pending for the fake-account scandal that roiled the bank last year, and a new scandal has emerged: Recently it has been alleged that thousands of customers were signed up for insurance without their knowledge. A bevy of lawsuits is in the pipeline, and regulatory scrutiny is intensifying. Meanwhile, one of Well Fargo’s chief competitors, Bank of America, has been relatively scandal free, with impressive revenue and profit results for the first half of 2017. What explains the divergence in the fortunes of two of the U.S.’s largest banks?