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Promontory's connections and expertise turned the consultant into a private sector regulatory proxy. But those same strengths put the firm in the crosshairs after its role in the failed foreclosure review process and controversial work for MF Global and Standard Chartered.
March 15 -
The independent foreclosure review process was disorganized, ineffective and inconsistent, according to a draft report by the Government Accountability Office.
April 4
WASHINGTON — A Senate Banking subcommittee will examine the role of independent consultants in the financial services industry, including Promontory Financial Group, at a hearing next week.
Sen. Sherrod Brown is scheduled to chair a financial institutions and consumer protection subcommittee hearing on April 11 that looks at “when it is appropriate for federal regulators to hire independent consultants and how they can best ensure proper oversight.”
The hearing appears centered around regulators’ decision to allow independent consultants to review loan files as part of the independent foreclosure reviews, a move that sparked criticism about potential conflicts of interest.
The panel will hear from Daniel Stepano, the deputy chief counsel of the Office of the Comptroller of the Currency, and Richard M. Ashton, the deputy general counsel of the Federal Reserve Board. Also scheduled to appear is Konrad Alt, a managing director with Promontory Financial Group, which has
James Flanagan, the head of the financial services practice at Pricewaterhouse Coopers, is also scheduled to testify.
House lawmakers are also interested in the role of consultants in the independent foreclosure reviews. Rep. Maxine Waters said late Wednesday that she will introduce legislation next week that
