Banks Large and Small Brace for Shockwave of Wells Fargo Scandal
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VOL. 37, NO. 45 NOVEMBER 7 - 13, 2016 Source Lunch Health Case researchers could play crucial part in fi ght against malaria. Page 4 Kareemah Williams The List on manufacturing’s role CLEVELAND BUSINESS Northeast Ohio’s largest in the region. Page 48 hospitals. Page 51 EMPLOYMENT BUSINESS OF LIFE | PAGE 46 County A labor of love working on career pathways By JAY MILLER [email protected] @millerjh When Cuyahoga County Executive Armond Budish cut the ribbon on the county’s new Work Opportunity Resource Center last Tuesday, Nov. 1, he also was kicking o a new ap- proach to helping people move from welfare to not just a job, but, he hopes, to a career. e WORC, on the rst oor of the county’s human services building on Payne Avenue, is the most visible ex- pression of Budish’s strategy to merge the county’s social welfare services with its newly focused workforce program, until now a part of its eco- nomic development department. e plan is to create a silo-break- ing operation that guides unem- ployed or underemployed people on public assistance into an entry-level job and then, even after they have ex- hausted their welfare eligibility, helps them build a career. e career Eugene Holtier, who came to the United States from Romania in 1985, isn’t a musician by trade. In fact, he started his career as an industrial piece comes by nding training pro- designer before fi nding work as a car salesman to pay the bills. Now, his handcrafted instruments, which are made in his North Ridgeville grams that lead to advancement, or workshop, have found homes across the country. One of his cellos is even in the Cleveland Orchestra. (Tim Harrison for Crain’s) by helping to nd a ordable day care or transportation to work, for as much as ve years as workers move FINANCE up the ladder from a rst job to a higher-paying job. It has been called a career path- ways approach that, so far, has been Banks large and small brace for tried only in small-scale, narrowly focused pilot programs. “Basically, we’re transforming the shockwave of Wells Fargo scandal workforce system,” Budish said. “We’ve got a lot of programs to train By JEREMY NOBILE centives and the ways its bankers in- tomer accounts opened to in ate material changes to their procedures. people, but it’s not working together teract with customers. sales gures. e result was thou- Yet, “I think we’ll be a little more as a system.” [email protected] It’s a topic that doesn’t normally sands of red sta , nes and a seri- proactive in terms of how we mea- Part of the problem is that the wel- @JeremyNobile come up in investor calls, where con- ous blemish on the San Francis- sure performance,” he said. fare system has been satis ed to versation mostly focuses on bank co-based bank’s reputation in the at Huntington, a reputable bank move people from welfare to a rst, Huntington Bancshares Inc. CEO performance and market outlooks. market. that has drawn its share of awards entry-level job but then cuts them Steve Steinour addressed the ele- But this past quarter was a atypical Steinour, like many of his fellow and recognitions for consumer ser- loose, leaving former welfare clients phant in the room when, unprompt- from others, as the banking industry executives at other banks, told ana- vice, is proactively addressing such to gure out for themselves how to ed, he told investors during a was marred by a massive scandal un- lysts he doesn’t anticipate Hunting- issues underscores the aftershock nd the next-level job or the training third-quarter earnings call that Hun- covered at Wells Fargo in September ton's review turning up anything that event is having on the industry. SEE COUNTY, PAGE 45 tington Bank was reviewing sales in- involving some 2 million bogus cus- questionable that would result in SEE BANKS , PAGE 50 Entire contents © 2016 by Crain Communications Inc. Focus on Small Business When pigs fl y: Local restaurants are cooking up some good BBQ, and more is on the way Page 15 Adviser, Tax Tips Page 16 Kathy Vegh’s newest venture Page 19 The nation’s BIGGEST culinary event! NOV 11–13 I-X CENTER THE FLATS tremont East Fourth Chagrin Falls Lakewood Little Italy Downtown a quare Gordon Square University Circle OHIO CITY Cleveland Heights F F S P SAVOR CLEVELAND FO US OD O S L H U O B W hosted by beneting A F C L E E S U 11/11 FRIDAY 7:00PM – 9:00PM C A oo C RESERVE YOUR TICKET TODAY ks for a G F • S C L M E *Separate event admission ticket required. TICKETS ON SALE NOW $19.99 Super Saver tickets only available at The Ocial Discount Ticketing NE Ohio Giant Eagle and Retail Partner of Giant Eagle Market District locations Fabulous Food Show FabulousFoodShow.com • @FabulousFoodShow 11/11 FRIDAY 11/12 SATURDAY 11/13 SUNDAY 11AM–8PM 10AM–8PM 10AM–6PM November 7, 2016 www.ClevelandFoundation.org/Purpose ADVERTISEMENT Turning Passion Into Purpose WITH THE CLEVELAND FOUNDATION To that end, Karen says she is always listening for areas where the children Igniting the Spirit show interest in a cause—they might mention someone who they heard was sick, see something compelling on a car ride or hear about a new nonprot of Philanthropy through school or their temple. For the family, it’s not necessarily the size + 2 : 2 1 ( ) $0 ,/ <·6&( / ( %5$7,2 1 of the donation that will matter, but that their children picked the cause ,1 63,5 ( ' 2 7+ ( 5 6,1 7+ ( on their own and recognized that they could make a dierence. 6( / ) / ( 6675 $' ,7,2 1 2 ) * ,9,1 * “I’ve always been attracted to the underdog,” Karen said. “I’m attracted Douglas and Karen Katz of Cleveland “Our mission at re is to nurture to the smaller organizations that are Heights aren’t intimidated by startups people and give back. It only makes doing such meaningful, powerful —they thrive on them. Douglas is sense that we would carry on that things, and it’s so hard to raise money the founder, owner and executive same approach as our family strives for them. I’ve seen it rsthand. To chef of re food and drink, an anchor to support the community.” restaurant in Shaker Square with a grassroots organizations, small gifts mission to serve amazing food, foster Karen and Douglas believed that can make such a dierence.” community and promote sustainable establishing a donor advised fund at Douglas and Karen can already practices. Karen serves as director of the Cleveland Foundation would also see that the fund will give them exhibits for e Children’s Museum give their children a voice in where an opportunity for meaningful of Cleveland with responsibilities that donations were made. experiences as a family. For parents include designing engaging exhibits “I think it would be great to nd who are both creative and empathetic, for young children something that this was key. and families and felt really good to fundraising for give to and follow “Even as one family, you can feel the new location. “fire is our family it over the next connected to a cause and see the ve years,” Karen Last year, business; it brings impact,” Douglas said. “at means said. “It would be Dou g la s a nd people together, and so much.” really cool for my Karen channeled Karen and Douglas Katz at the 2015 B’nai Mitzvah of their children, twins Amelia it strengthens the kids to be a part For even the youngest donors, and Abe, who decided to make an investment in their community at a young age. their artistic and neighborhood. of the growth.” nding where to start can be the entrepreneurial biggest question. So, when their B’nai t a l e n t s b y Our mission at fire When Abe and Mitzvah invitations were mailed last establishing the What the Katz Kids Say about Giving... is to nurture people Amelia began year, both Abe and Amelia decided re Philanthropic and give back. It their Mitzvah that instead of gifts, they’d suggest Fund of the project at The What are you most grateful for? only makes sense donations to the fire fund. The Cleveland Temple-Tifereth Abe: I’m most grateful for having all of my basic needs for survival that we would carry response from their friends and Foundation. Israel, the fund provided for me instead of having to miss out on things. family was overwhelmingly positive, While the on that same ap- played a large as more than 60 guests decided that What are five words that describe how you feel about saving your money restaurant served proach as our family part in their giving to the fund was also a wise to give back to others? as a symbolic strives to support discussions about Amelia: jumping-off the community.” helping others investment. Helpful, giving, responsible, caring, special. point, their and giving back to “As a family, we believed in How might you use your fund? philanthropic goal -Douglas Katz the community. giving to people and supporting Abe: is to involve their I want to help homeless people in Cleveland who are struggling children, twins “I don’t want my neighborhoods,” Douglas said. “It with their daily lives. Abe and Amelia, kids to grow up was affirming to have our closest How do you plan to change the world? and give together as a family.