New York State has subpoenaed two consulting firms as part of a broader investigation into the industry’s perceived coziness with Wall Street, the New York Times DealBook Blog reported today. The two firms that received the subpoenas in recent months — Promontory Financial Group and PricewaterhouseCoopers — are among the industry’s biggest names. The subpoenas by the New York Department of Financial Services present the latest threat to the consulting industry, which is being faulted for inadequately handling recent bank regulatory problems. The examination of the consultants stems from a concern that the industry’s business model is rife with conflicts of interest. Neither firm has been accused of wrongdoing, and New York has not indicated that it will penalize the firms.
