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MoneyDeloitte was hired by Standard Chartered, a British bank, to independently spot suspicious money transfers routed through its New York branches. However, as the consultants, a final report submitted to state regulators was watered down, indicating misconduct by Deloitte and a lack of autonomy for Standard Chartered’s illicit transfers of billions of dollars on behalf of Iran. As part of a settlement with state officials, Deloitte was fined $10 million and banned from advising banks for one year.

Questions:
1. Why did the article claim that New York’s agreement will serve as a model for reforming financial service consulting? Discuss.
2. Explain why the article referred to some of the world’s largest accounting firms as shadow regulators of Wall Street.
3. What other types of botched reviews by these consultants have been in the news recently?

Source:
Protess, B. and J. Silver-Greenberg. (2013). In Crackdown on Bank Consultants, Deloitte is Fined and Banned. The New York Times, June 18 (Retrievable online at http://dealbook.nytimes.com/2013/06/18/in-crackdown-on-bank-consultants-deloitte-is-fined-and-banned/?hpw)