Mr. Brown, an Ohio Democrat who is a senior member of the Senate Banking Committee, is expected to say in the letter. “This lax system undermines financial regulation at every level and puts our economy at risk.” The pressure from Capitol Hill comes as fresh details emerge about one of the consulting industry’s most lucrative assignments. When several consulting firms were enlisted to pore over home foreclosures as part of a federal enforcement action, they collectively received about $2 billion for their work, even though the consultants reviewed only a fraction of the loans. New documents suggest that the Promontory Financial Group, which examined loans for Wells Fargo, Bank of America and PNC, was the highest paid of the consultants. The firm, run by a former comptroller of the currency, Eugene Ludwig, received $927 million for reviewing more than 250,000 loan files, according to documents provided to the Senate Banking Committee and reviewed by The Times. PricewaterhouseCoopers, which reviewed files for four banks, was paid about $425 million. Deloitte, which handled JPMorgan’s foreclosure review, was paid $465 million. The substantial payments have raised questions about the independence of the consulting firms, which Mr. Brown said were paid and handpicked by the same banks they were expected to help change
Posted on: Fri, 21 Jun 2013 14:38:00 +0000
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