The report, carried out by board Chairman Stephen Sanger and three other independent directors and released to media on Monday, said former retail division head Carrie Tolstedt ignored the systemic nature of abusive sales practices and accused her of impeding the board’s efforts to address an issue that festered for years.
Lawyers for Tolstedt rejected the report’s findings on Monday. She had declined to be interviewed for the investigation.
“We strongly disagree with the report and its attempt to lay blame with Ms. Tolstedt. A full and fair examination of the facts will produce a different conclusion,” Enu Mainigi, Williams & Connolly LLP, attorneys for Tolstedt, said in a statement.
Sanger, a board member since 2003, faces pressure to root out the problems amid calls by advisory group Institutional Shareholder Services for investors to oust him and other directors in place when the scandal broke. Glass Lewis meanwhile has recommended votes against six board members at the bank’s April 25 annual meeting.