Promontory Financial Group

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Promontory Financial Group
legal form Limited Liability Company
founding 2001
Seat Washington, DC, United States
management Eugene Ludwig
Number of employees about 400
Branch Financial advice
Website www.promontory.com

The Promontory Financial Group , LLC , in Washington, DC is a global consulting firm that provides customers with a variety of financial services advice.

Organization and business areas

The company was founded by Eugene Ludwig, who in the administration of President Bill Clinton from 1993 to 1998 monetary authorities was and Alfred Moses, who at the same time the law firm Covington & Burling LLP operates, founded in 2,001th

The company's business areas include asset management , compliance , risk management , liquidity , restructuring , acquisition , risk and auditing . The company has 14 additional offices and branches worldwide in Atlanta , Brussels , Denver , Dubai , Hong Kong , London , Milan , New York City , Paris , San Francisco , Singapore , Sydney , Tokyo and Toronto . It is among 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
  • Promontory Interfinancial Network, LLC
  • Promontory Training Solutions

Promontory offers, among other things, services in the field of Certificate of Deposit Account Registry Services (CDARS). In this method, high investment amounts to a variety of smaller amounts (currently $ 250,000) under the maximum deposit insurance of the Federal Deposit Insurance Corporation , are (FDIC) divided at different financial institutions. In this way, Promontory secures deposits of up to US $ 50 million with 2500 partner organizations. Although Promontory receives the insurance surcharges, the protection is effectively provided by the FDIC.

Due to the high losses in the context of foreign exchange transactions at the Allied Irish Bank , Promontory examined the processes within the bank and came to the conclusion in the so-called "Ludwig Report", published on March 14, 2002, that the trader John Rusnak , who for a large part of the Who was responsible for losses and was therefore fired, had no active help within the bank or from outside. The internal control mechanisms and audits were inadequate, but could have significantly reduced the extent of the losses with consistent application.

Promontory also advised the government of the United States and other countries such as Cameroon and Iceland . Recently the company a broader world public became known because it commissioned by the Vatican of a comprehensive investigation of all customer contacts Institute for the Works of Religion (IOR) (German: Institute for Religious Works), often referred to as Vatican Bank, on money laundering to perform .

staff

Mary Schapiro

About 170 of the consultants working at Promontory were formerly employees in authorities of the financial market supervision , the company is therefore a kind of "shadow regulator " of Wall Street . Among other things, the former head of the US Securities and Exchange Commission, Mary Schapiro, switched to Promontory in 2013. Former Board 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 branches are also closely linked to the respective financial market authorities. The UK Financial Group is the non-executive chairman of the United Kingdom Financial Services Authority's former chairman Sir Callum McCarthy and its former director Michael Foot is its global vice chairman. The European office in Brussels is currently represented by Raffaele Cosimo, who previously worked for Banca Nazionale del Lavoro in Rome . Former chairman of the Promontory financial group Europe was, among others, the late former Italian economics and finance minister Tommaso Padoa-Schioppa .

criticism

(English, for the implementation of Foreclosure reviews foreclosure verification ) of more than 250,000 credit agreements for the Bank of America , PNC Financial Services and Wells Fargo received Promontory 927 million US $, which led to strong criticism and doubts about the independence of the checks. The US Senate Banking Committee organized a hearing to see if too much financial oversight was being outsourced from government agencies to private companies.

Individual evidence

  1. ^ A b Jeff Horwitz, Maria Aspan: How Promontory Financial Became Banking's Shadow Regulator. American Banker Magazine, March 15, 2013, accessed July 15, 2013 .
  2. ^ Office of the Comptroller: OCC: Eugene A. Ludwig. Comptroller of the Currency 1993 to 1998. US Department of the Treasury, December 29, 2010, accessed July 17, 2013 .
  3. ↑ Pam Martens: Meet the Two Men Behind Promontory Financial Group, Architect of a Growing Foreclosure Settlement Scandal. Wall Street On Parade, April 17, 2013, accessed July 26, 2013 .
  4. ^ Promontory Financial Group, LLC: Private Company Information. Businessweek, July 15, 2013, accessed July 15, 2013 .
  5. ^ Contributors and Supporters. Group of Thirty, archived from the original on August 7, 2013 ; accessed on July 15, 2013 .
  6. ↑ Affiliated Companies. Promontory Financial Group, accessed July 18, 2013 .
  7. ↑ James Barth: The Rise and Fall of the US Mortgage and Credit Markets . A Comprehensive Analysis of the Market Meltdown. John Wiley & Sons, 2009, ISBN 978-0-470-49388-5 , pp. 199 (English, limited preview in Google Book Search [accessed July 25, 2013]).
  8. ^ Promontory Financial Group: The Ludwig report: Implications for Corporate Governance. (PDF; 511 kB) Report to the Boards of Allied Irish Banks, plc, Allfirst Financial Inc. and Allfirst Bank Concerning Currency Trading Losses. MCB UP Ltd, March 12, 2002, archived from the original March 4, 2016 ; accessed on July 25, 2013 .
  9. ^ Alan N. Peachey: Great Financial Disasters of Our Time . Ed .: Intersentia (=  New Business Studies Study Books . Volume 21 ). 3. Edition. BWV Verlag, Berlin 2011, ISBN 978-3-8305-1869-3 , pp. 81 ff . (English, limited preview in Google Book Search [accessed on July 25, 2013]).
  10. ^ Pierre-Yves Thoraval: Report on Iceland Supervision. (PDF; 9.2 MB) Prepared for the Icelandic Authorities, the FME and the IMF. In: Banking Supervision. Promontory Financial Group, April 15, 2011, accessed July 15, 2013 .
  11. ↑ Scarano case: money frozen, investigations could be expanded. Vatican Radio, July 12, 2013, accessed July 14, 2013 .
  12. ↑ a b Ben Protess, Jessica Silver-Greenberg: Promontory Financial Draws Washington Scrutiny - NYTimes.com. Former Regulators Find a Home With a Powerful Firm. In: DealBook. The New York Times, April 9, 2013, accessed July 15, 2013 (Promontory causes scrutiny in Washington).
  13. ↑ Mary Schapiro: Ex-head of the US Securities and Exchange Commission changes sides. Management company. Handelsblatt, April 2, 2013, accessed on July 14, 2013 .
  14. ↑ Debra Cope: Former US Treasury Department Official David G. Nason Named a Managing Director Of Promontory Financial Group. Business Wire, March 30, 2009, accessed July 14, 2013 .
  15. ^ FRB: Sarah Bloom Raskin. The Federal Reserve Board of Governors, Washington DC., June 6, 2013, archived from the original on July 2, 2013 ; accessed on July 14, 2013 : "Prior to serving as Commissioner, Ms. Raskin was Managing Director at the Promontory Financial Group."
  16. ↑ Ben Protess, Jessica Silver-Greenberg, Senator Sherrod Brown: Senator Criticizes Lack of Supervision for Banks' Consultants - NYTimes.com. In: DealBook. The New York Times, June 20, 2013, accessed July 15, 2013 .