Promontory Financial Group
The Promontory Financial Group, LLC, in Washington, DC is a global consulting firm that advises clients with a variety of financial services.
Organization and business
The company was founded by Eugene Ludwig, who was in the administration under President Bill Clinton from 1993 to 1998 monetary authorities, and Alfred Moses, who has worked for the law firm Covington & Burling LLP same time, in 2001.
The business segments of the company include asset management, regulatory compliance, risk management, liquidity, restructuring, the acquisition and the risk and auditing. The company has 14 additional offices and stores worldwide in Atlanta, Brussels, Denver, Dubai, Hong Kong, London, Milan, New York City, Paris, San Francisco, Singapore, Sydney, Tokyo and Toronto. It belongs to the depositors and supporters of the Group of Thirty.
Promontory is intertwined with other subsidiaries with similar sounding names:
- Promontory Forensics Solutions, LLC
- Promontory Growth and Innovation
- Promontory Human Capital Solutions
- Inter Promontory Financial Network, LLC
- Promontory Training Solutions
Promontory offers, among other services in the Certificate of Deposit Account Registry Service ( CDARS ). In this method, high investment sums are divided into a number of smaller amounts (currently U.S. $ 250,000 ) less than the maximum deposit insurance by the Federal Deposit Insurance Corporation ( FDIC ), at different financial institutions. With 2500 partner organizations Promontory thus secured deposits of up to 50 million U.S. $. Although Promontory receives the insurance premiums, the backup is effectively done by the FDIC.
Because of the high losses under foreign exchange market transactions with Allied Irish Bank surveyed Promontory the processes within the bank and came in the so-called " Ludwig Report ", published on 14 March 2002, the concludes, the dealer John Rusnak, for a large part losses was responsible and was therefore fired, have not received active support within the Bank or from the outside. The internal control mechanisms and audits were inadequate, were the extent of the losses, however, can significantly reduce when used consistently.
Promontory also advised the Government of the United States and other countries such as Cameroon and Iceland. Recently the company a broader world public has been known because it ( IOR ) ( German: Institute for Religious Works ) on behalf of the Vatican, a comprehensive investigation of all customer contacts the Istituto per le Opere di Religione, often referred to as the Vatican Bank, is to carry on money laundering.
Staff
Approximately 170 of operating at Promontory consultants were formerly employees of financial market supervision authorities, therefore the company is considered a kind of " shadow regulator" of Wall Street. Among other things, the former head of the U.S. Securities and Exchange Commission Mary Schapiro has changed in 2013 to Promontory. Former board members include former Secretary of State for financial institutions in the United States Treasury, David Nason, and the current director of the Fed, Sarah Bloom Raskin.
The European operations are closely linked to the relevant financial market supervision. Non- executive Chairman of the Finance Group UK is the former chairman of the Financial Services Authority, Sir Callum McCarthy, her vormaliger director Michael Foot is the global vice chairman. The office for Europe in Brussels is currently represented by Raffaele Cosimo, who had previously worked for Banca Nazionale del Lavoro in Rome. Former Chairman of Promontory Financial Group, Europe was, among others, the late former Italian Economy and Finance Minister Tommaso Padoa- Schioppa.
Criticism
For the implementation of Foreclosure Reviews (English, foreclosure verification ) of over 250,000 credit agreements for the Bank of America, PNC Financial Services and Wells Fargo received Promontory 927 million U.S. $, which led to strong criticism and doubts about the independence of the tests. The U.S. Senate Banking Committee led a hearing to consider whether too much tasks of financial supervision of authorities would be outsourced to private companies.