|
The Morning Risk Report: Abandoned IT Integration Linked to Danske Bank Case |
|
|
| |
|
|
Danske Bank headquarters in Copenhagen. PHOTO: FREYA INGRID MORALES/ BLOOMBERG NEWS
|
|
|
Good day. The billions of dollars that flowed through the Estonian branch of Denmark's largest bank may have slipped past risk analysts in part because the lender dropped plans to integrate its information technology platforms.
Investigations: Danske Bank A/S this week revealed the results of an internal investigation that found a single branch in Estonia was a pipeline for carrying illicit funds from Russia and ex-Soviet states. The CEO quit in the wake of the probe's release. Authorities in Denmark reopened a probe. The U.S. and Estonia also are investigating.
|
|
|
|
Technology: The internal investigation found that the Estonian branch had its own IT platform, and therefore wasn't covered by the same customer, risk and transaction monitoring systems as other parts of the bank.
Danske in 2008 abandoned plans to migrate the Baltic banknig activities onto the broader group's IT platform, saying it was too expensive and required too many resources, the internal investigation found.
|
|
|
|
SEC Says Not to Judge Its Enforcement Record Based on Fines |
|
The Securities and Exchange Commission is still policing wrongdoers even if the volume of its enforcement actions and dollar amount of its penalties drop this year, said Stephanie Avakian, the SEC's co-director of enforcement.
|
|
|
Liberia Probes Central Bank's Missing $104 Million |
|
Authorities in Liberia said they were probing the disappearance of $104 million in newly printed banknotes in a possible fraud equal to 5% of gross domestic product. Fifteen officials are under investigation, the justice ministry said.
|
|
|
Google Continues to Allow Apps to Scan Gmail Accounts |
|
Alphabet Inc.'s Google told lawmakers it continues to allow other companies to scan and share data from Gmail accounts. Google itself stopped the practice for the purpose of ad targeting last year.
|
|
|
Airlines Fight Push to Regulate Ticket-Change Fees |
|
|
|
|
A screenshot shows "Ralph Breaks The Internet," the sequel to "Wreck-It Ralph." PHOTO: DISNEY
|
|
|
Disney Reanimates Portions of Upcoming Film After
Backlash |
|
Walt Disney Co. decided to reanimate scenes showing its only black princess in the coming “Wreck-It Ralph” sequel after facing criticism that the company lightened her skin tone from previous appearances.
Princess Tiana was hailed as a breakthrough character for Disney when she first appeared in 2009. Online users said they saw differences in pigmentation and facial features between the 2009 and 2018 versions of her after Disney released images of the film.
Disney began to reanimate the princess following the backlash.
|
|
|
Oil Giants Use Size to Overcome Fracking Challenges |
|
Big oil companies seeking to re-create the U.S. shale boom in other countries are trying to avoid problems by managing multiple aspects of shale sites in concert to prevent logistical difficulties.
|
|
|
GE Discovers Flaw in Latest Power-Plant Turbines |
|
General Electric Co. discovered a flaw in its newest power-plant turbines after a key part failed earlier this month. GE said the problem is an "oxidation issue" related to a metal alloy.
|
|
|
Brooks Brothers Modernizes its Supply Chain |
|
Brooks Brothers is giving its supply chain a 21st-century overhaul, with a goal toward fulfilling orders more nimbly and speeding up delivery to customers by tapping into its retail inventory.
|
|
|
|
Wells Fargo to Cut Jobs Over Next Three Years |
|
Wells Fargo & Co. said it would reduce jobs by 5% to 10% within the next three years. The cuts could affect as many as 26,500 employees, based on its quarter-end headcount of 265,000.
|
|
|
|
Goldman's Top Stock Trading Executive to Depart |
|
Paul Russo, who has run Goldman Sachs Group Inc.'s equities business since 2012, is negotiating his exit and will likely depart in the coming weeks, people familiar with the matter said.
|
|
|
Former MiMedx Executives to Lose Compensation |
|
MiMedx Group Inc.’s board has determined that four former executives engaged in conduct detrimental to the business and should forfeit compensation in connection with their exits, now seen as “for cause” terminations.
The findings announced Thursday were part of an investigation launched by the board’s audit committee earlier in 2018. The investigation is ongoing, the troubled tissue-graft developer said.
MiMedx also said Parker H. Petit, the former chief executive, had resigned as a board member. He resigned as CEO on June 30.
|
|
|
|
Seneca Foods Corp., which licenses the brand Libby's, found past errors that required restatements. PHOTO: DANIEL ACKER/BLOOMBERG NEWS
|
|
|
Companies Find More Accounting Flubs |
|
Preliminary data indicate the reversal of a trend: The number of material accounting mistakes made by U.S. public companies is rising.
During the first six months of 2018, 65 companies detected accounting mistakes, compared with 60 companies during the same peiriod last year, according to Audit Analytics. The uptick came during a period when finance teams were overhauling corporate accounting paperwork to comply with the new tax law and new revenue-accounting rules.
|
|
|
Readers can subscribe to The Morning Risk Report here: http://on.wsj.com/MorningRiskReportSignup. Follow us on Twitter at @WSJRisk.
Follow the WSJ Risk & Compliance Team on Twitter: @WSJRisk, @srubenfeld and @LikelyMara.
Send comments to the Risk & Compliance editor, Jack Hagel, at jack.hagel@wsj.com.
|
|
|