atans1

The truth about consultants/ Can PwC be trusted?

In Corporate governance on 26/08/2014 at 4:18 am

“When bank executives pressure a consultant to whitewash a supposedly ‘objective’ report to regulators – and the consultant goes along with it – that can strike at the very heart of our system of prudential oversight.”
Benjamin M. Lawsky, New York State’s financial regulator, on a settlement deal with PricewaterhouseCoopers.

PwC was asked in June by Bank of Tokyo-Mitsubishi UFJ, part of Mitsubishi UFJ Financial Group Inc 2007 to review the bank’s dollar- clearing activity from April 1, 2006, to see whether any should have been blocked or reported under rules by the Treasury Department’s Office of Financial Asset Control.

PwC edited the report at the bank’s request “in ways that omitted or downplayed issues of material regulatory concern,” including cutting out English translations for instructions to strip references to “doing business with ‘enemy countries’ of the US,” according to the settlement. The Historical Transaction Review report was finished in June 2008 and filed to US regulators and became the “cornerstone” for the 2013 deal with Bank of Tokyo-Mitsubishi, according to the accord with PwC. The two partners responsible for supervising the review have retired from PwC.

Con persons not professionals.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: