Brown to Chair Banking Hearing on Independent Consultants in Financial Services Industry

Hearing Entitled “Outsourcing Accountability? Examining the Role of Independent Consultants” will Include Testimony from Regulators and Leading Independent Consultants

WASHINGTON, D.C. –U.S. Sen. Sherrod Brown (D-OH), Chairman of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection, will chair a hearing of the subcommittee entitled “Outsourcing Accountability?  Examining the Role of Independent Consultants.” The hearing will examine the role of independent consultants in the financial services industry and how to ensure proper oversight when they are hired by federal regulators.

“If our financial watchdogs are going to entrust their responsibilities to private companies, then the public must better understand how these companies are selected and directed, how they go about their work, and whether regulators are providing adequate oversight,” Brown said.

The hearing will examine the independence, oversight, and quality of services provided by private consultants, which are routinely hired by banks at the behest of regulators. A report released today by the Government Accountability Office (GAO) revealed gaps in the quality of banking regulators’ oversight of work provided by independent consultants hired to oversee the Independent Foreclosure Review Process (IFR) established in the wake of widespread mortgage servicing errors.

                        WITNESSES:           Panel I:

Daniel P. Stepano, Deputy Chief Counsel, Office of the Comptroller of the Currency

Richard M. Ashton, Deputy General Counsel, Board of Governors of the Federal Reserve System


Panel II:

Mr. Konrad Alt, Managing Director, Promontory Financial Group, LLC

Mr. James F. Flanagan, Leader, U.S. Financial Services Practice, Pricewaterhouse Coopers LLP


                        WHEN:                      Tuesday, April 11, 2013 at 10:00 AM


                        WHERE:                    538 Dirksen Senate Office Building

                                                            Washington, DC 20510






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