Wednesday, July 10, 2013

Enjoy them $300 dollar checks? Look who got the rest ..

Consulting for big banks pays well — really well.
A prominent Washington consulting firm run by a former top U.S. banking regulator was paid $927.5 million to conduct a review of foreclosure files, according to a letter sent by Promontory Financial Group to the Senate Banking Committee.
The disclosure comes as lawmakers on Capitol Hill and New York’s top banking regulator push regulators to more closely scrutinize the relationship between consulting firms and banks, amid concerns that the consultants are not truly independent.
Earlier this week, Deloitte LLP’s financial advisory services unit agreed to pay $10 million and accept a one-year ban from consulting for New York-regulated banks to settle regulators’ allegations the firm mishandled its anti-money-laundering work for U.K. bank Standard Chartered PLC.
Under the agreement with New York’s banking regulator, Benjamin M. Lawsky, Deloitte also agreed to overhaul its internal safeguards and create standards to increase its independence from clients.
Federal bank regulators to adopt similar standards, including the disclosure of conflicts of interest and boosting regulators’ monitoring of consultants, says Sen. Sherrod Brown, (D., Ohio), a member of the Senate Banking Committee.  The Office of the Comptroller of the Currency and Federal Reserve should “act immediately to create a similar set of written standards for independent consultants,” Mr. Brown wrote in a letter sent Friday to the two regulators.
“We are actively at work on a set of standards governing the use of consultants retained by national banks and federal thrifts to satisfy a regulatory order, and we expect to finalize them in the near future,” said Bryan Hubbard, a spokesman for the Office of the Comptroller of the Currency. A Fed spokeswoman said the central bank would respond to the letter.
The foreclosure-relief settlement has come under stiff criticism on Capitol Hill, with lawmakers questioning whether it adequately compensates homeowners who may have been subject to foreclosure errors. The settlement, initially reached in January, has expanded to 13 banks and is now worth $9.3 billion.
Promontory, which is run by Comptroller of the Currency Eugene Ludwig, defended its review of more than 250,000 mortgage files. Regulators shut down the probe, which launched in 2011, amid dissatisfaction about the review’s escalating costs and the time involved.
Konrad Alt, a Promontory managing dierctor who was a top OCC official in the 1990s, wrote that the company ”performed several million hours of labor” and “an amount of information comparable in magnitute to all the written materials held by the Library of Congres.” Mr. Alt emphasized that banks, rather tahn taxpayers paid for the review.
Other consulting firms also defended their work in letters to the Senate panel. Owen Ryan, a Deloitte LLP audit and enterprise risk partner, said “our independence as a consultant was not influenced in any way by the financial institution.” Deloitte, which was paid $465 million for its work.
James Flanagan, leader of the U.S. financial services practic at Pricewaterhouse Coopers LLP, said his company acted as “impoartial and objective consultants” in the forcelosure reivew. The company was paid $425 million for its work.

Now lets give a big hand to the OCC, SEC, CFPB, and our goverment for our 300.00 checks! Assholes!

No comments:

Post a Comment