Powerful Firm Becomes Second Home for Financial RegulatorsTweet
April 10, 2013
Promontory Financial Group, a consulting firm, has become a powerful player in the financial regulatory world partially because nearly two-thirds of the company’s senior executives came from financial regulatory agencies, according to The New York Times.
Promontory helps major financial firms comply with new regulations and clean up systematic problems while also advising the governments of the U.S. and other countries on regulatory issues. Recently, Promontory hired Mary Schapiro, the former chairman of the Securities and Exchange Commission.
Some lawmakers are concerned about how the firms advises federal regulators and then turns around and consults with banks and financial firms on potentially the same regulations.
From the article:
But Promontory and other consultants are now facing scrutiny in Congress, amid growing unease over their influence and their close ties to federal authorities. The Senate Banking Committee is set to hold a hearing on Thursday to examine whether regulators inappropriately “outsource” oversight to consultants like Promontory, which are paid billions of dollars by the banks.
Read more about Promontory’s many ties to financial firms and see a list of former regulators now at the firm in the full New York Times article.
Andre Francisco is the Online Producer for the Project On Government Oversight.
Topics: Financial Sector
Authors: Andre Francisco
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