IBM Plans to Buy Promontory Financial Group
September 29 2016 - 11:29AM
Dow Jones News
By Ryan Tracy
International Business Machines Corp. plans to purchase
consultancy Promontory Financial Group LLC., the two companies said
Thursday, creating a new subsidiary dubbed 'Watson Financial
Services.'
The companies didn't disclose financial details of the deal,
which they said is subject to regulatory approvals. The idea, they
said, is to combine Promontory's financial regulatory expertise
with Watson, IBM's artificial intelligence computer system , to
help banks meet ever-rising regulatory expectations in areas such
as anti-money-laundering detection systems, consumer complaint
databases, and so-called stress tests.
Financial regulatory requirements are "rapidly outstripping the
capacity of humans to keep up," a joint press release from the
companies said.
Privately held Promontory was founded in 2001 by Eugene Ludwig,
a former U.S. Comptroller of the Currency, and has hired a small
army of former regulators and government officials to advise
financial firms. It now has about 600 full-time employees and 19
offices, 14 outside the U.S.
Write to Ryan Tracy at ryan.tracy@wsj.com
(END) Dow Jones Newswires
September 29, 2016 11:14 ET (15:14 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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