NY Regulator Blocks Promontory from Bank Consulting

Citing “a lack of independent judgment,” New York’s Department of Financial Services Department announced on Monday that it will deny Promontory Financial Group, one of the world’s most influential bank consultants, access to confidential supervisory bank information, a move that prevents it from engaging in regulatory work with financial institutions the state regulator oversees. The action comes on the heels of a report, also released on Aug. 3, detailing work Promontory did for British bank Standard Chartered when it was accused of violating U.S. sanctions on Iran.

In 2012, NYDFS went public with accusations that British bank Standard Chartered conspired to conceal...