NEW YORK — The giant consulting firm PricewaterhouseCoopers occupies a position of trust on Wall Street, acting as a shadow regulator of sorts that promises the government an impartial look inside the world’s biggest banks.
But the firm — hired and paid by the banks it examines — has landed in the regulatory spotlight for obscuring some of the same misconduct it was supposed to unearth, according to confidential documents and interviews with people briefed on the matter.
Oh, what a shock.
New York state’s financial regulator is poised to announce a settlement.
Oh, what a $hock.
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The regulator, Benjamin M. Lawsky, will impose a $25 million penalty against PricewaterhouseCoopers and prevent one of its consulting units from taking on certain assignments from New York-regulated banks for two years, a reputational blow that could cause some banking clients to leave.
It's a ki$$ on the wri$t.
The firm, which is accused of lacking the objectivity and integrity expected of consultants but not actually breaking the law, agreed to pay the fine and accept the two-year sidelining of its regulatory consulting unit.
Then why would they pay?
PricewaterhouseCoopers appeared to have had little choice: Lawsky’s office, which has the authority under a little-known New York law to censure erring consultants even without a legal violation, threatened to otherwise inflict a more sweeping and lengthy prohibition....
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"Consulting firm will pay $25m to settle" by Michael Virtanen | Associated Press August 19, 2014
ALBANY, N.Y. — PricewaterhouseCoopers will pay $25 million and face a two-year suspension from consulting for new banking clients under an agreement with New York regulators.
An investigation showed the company improperly altered a report about Bank of Tokyo Mitsubishi laundering money.
Monday’s agreement followed a $250 million settlement between the bank and the same regulators last year.
How much was kicked back to the $tate?
How much was kicked back to the $tate?
New York’s Department of Financial Services said the consulting firm, under pressure from the bank’s executives, altered a report on wire transfers made on behalf of Iran, Sudan, and other countries that have been sanctioned by the United States.
Too big to jail.
Too big to jail.
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