In Lieu of Legal Battle, Promontory Settles with NY for Missteps with U.K. Bank

By Colby Adams

Promontory Financial Group on Tuesday agreed to pay New York regulators $15 million and forego entering into certain consulting arrangements for the next six months with state-chartered financial institutions. The settlement ends a public squabble between Promontory and the New York State Department of Financial Services (NYSDFS) kicked off by the agency's decision earlier this month to indefinitely bar the Washington, D.C.-based consultancy from accessing confidential supervisory data on behalf of future bank clients. In an Aug. 3 report, the department accused Promontory of whitewashing multiple reviews of Standard Chartered Bank's sanctions controls in an effort to shield the U.K....