We have lost over 20% of Compliance staff in my area since January 2020, and they are still not backfilling jobs. We are going to miss some key deadlines - one related to a MRA - and no one in senior management seems to care.
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If only the business is responsible for control failures and control implementation and control design, then a lot of people will be relieved to know that we can easypeasy dump thousands of employees who apparently have no actual responsibilities.
People being put into mortgage forbearance is an operational breakdown in the business because front line controls are lacking. The front line control framework is underdeveloped and hasn’t been implemented by the business as needed.
Now that COO has be re-orged, you can clearly see the number of “control” employees at the bank because they dotted line report to the new Chief Control Executive.
Between control and corporate compliance there are over 10,000 employees- that’s insane. Add in the rest of risk management, and you have about 16,000- even more insane. That means there is a risk management person for every 16 other employees.
And still, the CEO gets letters from Senators about why people were put into forbearance agreements they didn’t request. I mean... come on.
So here’s what “control” means, totally out of control staffing levels but zero control over the operating environment.
It is interesting, they are approving corporate compliance jobs. For example, corporate compliance strategy and operations gets their backfilled approved. This team is populated with a bunch of useless project managers who breath down backs to get things done so they can check a box. They have no clue what it takes to get it done and provide zero guidance. Meanwhile, the business compliance roles are not being backfilled, and business compliance is being bled dry. This shows you what is wrong with the head of risk and this company. They are giving the resources to corporate compliance to push more spreadsheets around,because they have the ear of the head of compliance and are higher up on the food chain. Business compliance is under resourced and can’t provide the business with the advice, challenge and expertise they need to prevent a rule violation or launch a new product for growth. Go figure? Go m. snortin’.
Since the asset cap will not be lifted until the Fed is satisfied with the results of the consent order, I am wondering what these people are working on. The consent order is hugely about risk management and the CEO is at the mercy of the Fed to close the consent order and lift the asset cap. Relevant issues aren’t just going to be buried. It seems more likely that duplicative or pointless work is getting shut down.
In a lot of cases, there have been initiatives and projects started under the guise of some MRA. But, when you try to get details on the connection to the MRA or SHRP, you discover that the connection is weak or nonexistent and it’s just somebody trying to build a kingdom or justify their own existence.
Yes. That is the problem. Our fearless leader is focused on cost cutting and getting the asset cap lifted. Meanwhile, Compliance issues are being swept under the carpet, and Compliance officers are being forced to cut corners, and close issues that are not ready to be closed. Like you said the message from above is “get the MRA closed even if it is not truly sustainable at all costs”. Meanwhile, our leader tells the regulators that he is so sincere and focused on doing the regulatory the right way. It is hard to listen to him talk about this supposed heightened focus on completing the regulatory work the right way when in fact that is not actually what is happening in the company. When are the regulators going to wake up and realize that this Groundhog Day. Same circus, different clowns.
Compliance has been told to burry issues and move on to close the MRAs at any cost. Then compliance FTEs go.
Good. Compliance doesn't do Jack Schitt anyway. Look at all the compliance issues over the years, where was Compliance? Drunk? Asleep at wheel? That's where the cuts need to be.
they left to take some of stimulus (communist money) from the government
Only 20%?
That’s a positive sign and I am sure investors are happy to hear that a company with such bad internal controls is having attrition within compliance!
Why did they all leave?
They'll find someone to blame it on.
Do your job and you'll be fine. "Compliance" is such a bottle-neck with everything. Just make a damn decision quickly and move on.