PwC Gets Fine, Suspension, For Conflict In Bank Consulting Work

A New York state regulatory official determined that PricewaterhouseCoopers, charged with investigating possible trade sanctions violations by one of the world’s largest banks, shaved off some of the most telling passages of its report in response to exhortation by the bank, which was paying PwC for the investigation. No violation of any law was alleged, but the regulator was able to invoke New York state law to impose a penalty nonetheless, in this case a $25 million fine and a two-year ban against the firm’s being able to do some types of consulting work for New York-regulated banks, “a reputational blow that could cause some banking clients to leave,” according to the account in the New York Times. The Times acquired copies of both the original and the revised report, and the article provides examples of some of the revisions.