Today’s New York Times looks into the case of Promontory Financial Group, a self-described “leading strategy, risk management and regulatory compliance consulting firm focusing primarily on the financial services industry.” What’s notable, according to the Times is that:
Nearly two-thirds of its roughly 170 senior executives worked at agencies that oversee the financial industry. The founder, Eugene A. Ludwig, is a former comptroller of the currency and a law school friend of Bill Clinton; the latest hire, Mary L. Schapiro, ran the Securities and Exchange Commission until late last year.
Building off those connections, the Promontory Financial Group has emerged as a major power broker in Washington, helping Wall Street navigate an onslaught of new rules and regulatory scrutiny. Promontory accompanied Morgan Stanley when the bank urged regulators to rethink limits on risky trading, records show. It also joined Bank of America, Citigroup and other big banks at the Treasury Department to discuss plans for dismantling failing financial firms.
Using Sunlight’s Dodd-Frank meeting logs tracker, the Times found ten instances where firm executives met with regulators to discuss “thorny issues like the so-called Volcker Rule that curbs risky trading.”Continue reading