Not so elementary

29 September 2016 By Richard Beales, Robert Cyran Follow @richardbeales1

Big Blue is buying Promontory, a politically connected consulting shop for financial firms that face increasing regulation. Feeding Promontory clients’ data into IBM’s artificial-intelligence systems could flag problems faster. It might also make watchdogs’ jobs even harder.

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IBM on Sept. 29 said it would acquire Promontory Financial, a consulting firm for financial institutions focused on regulatory compliance.

Promontory, headquartered in Washington, D.C., has 600 employees, and was founded in 2001 by Gene Ludwig, the head of the Office of the Comptroller of the Currency during the 1990s. The firm is known for employing former financial regulators from government agencies including the Federal Reserve, the Federal Deposit Insurance Corp and the Securities and Exchange Commission.

Promontory will form the foundation of a new IBM unit, Watson Financial Services, which will also deploy the company's Watson supercomputer with its analytical and machine-learning capabilities.

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