Following Wells Fargo sham account claims, Cravath partner tapped as new GC
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C. Allen Parker, the former presiding partner of Cravath, Swaine & Moore, has been tapped to serve as Wells Fargo & Co.’s general counsel.
The corporate partner stepped down as the firm’s presiding partner in January, the Financial Times reports. Parker practiced with Cravath for more than 25 years and replaces James Strother, who served as Wells Fargo’s general counsel since 2003.
Last week, the bank cut compensation for eight top executives, including Strother, the American Lawyer reports. The move followed allegations that Wells employees opened as many as 2 million accounts without customers’ permission as part of an alleged scheme led by sales goals and potential bonuses. The bank agreed to settle the claims for $185 million, according to the article, and has set aside $1.7 billion for potential future litigation.
Tim Sloan, the bank’s president and CEO, who also was denied a 2016 bonus and other compensation, described Parker as an “extraordinary leader and strategic adviser” in a statement.
“Allen is well known throughout the legal and financial services industries not only for advising some of the world’s largest companies on their most complex legal matters but also for his strong character, integrity and high ethical standards,” Sloan wrote. “His background and corporate experience make him the ideal leader for this role as his efforts will be instrumental in helping our company continue to rebuild trust, make things right with customers, and build a better Wells Fargo.”
Parker, who currently is based in New York, is expected to begin the new position March 27, at Wells’ San Francisco headquarters. Strother will stay to help with the transition, the bank said.
A Columbia Law School graduate, Parker joined Cravath in 1984. He became a partner in 1990, and his clients include JPMorgan Chase & Co., Citigroup and DreamWorks Studios. He was selected as the firm’s presiding partner in 2012, succeeding Evan Chesler, who now serves as the firm’s chairman. Parker also chaired its diversity committee until recently.
“Over the last 25 years, Allen has been one of the most respected banking lawyers in the United States, a highly valued and admired partner in our firm, and a mentor to countless young people,” Faiza Saeed, Cravath’s current presiding partner, said in a statement. “We are so pleased that Allen will now be joining our client of many years, Wells Fargo, and we look forward to continuing our relationship with him in this new capacity.”
