Posts tagged 'Promontory Financial Group'

I, for one, welcome our new AI-regulator overlords

Most people aren’t terribly excited about teaching computers how to do their jobs, but multi-million-dollar settlements after regulatory investigations seem like a pretty good motivator.

IBM announced today that it’s buying Promontory Financial, a consultancy that came to represent some of the problems raised by the revolving door between regulators and Wall Street banks (it was founded by Eugene Ludwig, comptroller of the currency for the Clinton Administration). The company says it’ll build a machine-learning compliance platform, with Promontory’s staff training its Watson technology.

Promontory’s recent regulatory history is the main reason this looks like a pretty good deal for them. Last year, the company was almost suspended indefinitely from consulting for New York-licensed banks suspected of wrongdoing. (It ended up getting cut to six months, with a $15 million fine.)  Read more

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William Cohan has a furious column about Mary Schapiro, joining Promontory Financial Group just four months after stepping down as chairwoman of the SEC.

She’s joining about 100 other former regulators at Promotory and the gist of Cohan’s complaint is that Schapiro and others are cashing in outrageously here. Having served up a soup of overly-complex regulation while in office, these former regulators are now selling their inside knowledge on how to navigate the regulatory thicket. Read more