The New York Times reported earlier this week that Promontory Financial Group, a respected and influential consultant to large banks on regulatory matters, has been effectively banned by New York State’s financial regulator from doing business in the future with banks licensed in New York State.
The regulator would accomplish this by denying the firm confidential documents that consultants need to advise banks.
Previously, the newspaper reported that six Promontory employees were called in for depositions as part of a two-year investigation by New York’s financial regulator. The investigation was focused on an assignment the firm completed for Standard Chartered, a British bank that was suspected of processing billions of dollars on behalf of Iran. The bank hired Promontory to review transactions related to entities in question and then submit its findings to regulators. The regulator has accused Promontory of sanitizing its report to paint Standard Chartered in a more positive light.
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