They are known as Wall Street’s shadow regulators. And after years of guiding banks through problems like money laundering and foreclosure abuses, their influence has soared.
Now, regulatory scrutiny of the consulting industry itself is intensifying.
New York state has subpoenaed two consulting firms as part of a broader investigation into the industry’s perceived coziness with Wall Street, according to people briefed on the inquiry. The two firms, which received the subpoenas in recent months — Promontory Financial Group and PricewaterhouseCoopers — are among the industry’s biggest names.
The subpoenas by the New York regulator presents the latest threat to the consulting industry, which is being faulted for inadequately handling recent bank regulatory problems. In another sign that the industry’s clout is in jeopardy, federal regulators are rethinking their own reliance on consultants, which are often called in to bolster compliance procedures at banks. Full story for BostonGlobe.com subscribers.