By Angelique Chen
(Reuters) – Banking giants such as JPMorgan Chase & Co and Bank of America collectively face more than $1 billion in regulatory fines for employees’ use of unapproved messaging tools, including email and apps like WhatsApp.
The U.S. Securities and Exchange Commission (SEC) began probing banks’ record-keeping practices relating to the use of personal devices last year, Reuters reported at the time, and the Commodity Futures Trading Commission (CFTC) is also scrutinizing the issue, bank disclosures show.
Here is a list of fines that financial firms have already paid or expect to pay, according to recent disclosures:JP Morgan Chase & Co JP Morgan Chase & Co’s broker-dealer subsidiary was fined $200 million last year by the SEC and CFTC for widespread failures to preserve staff communications on personal mobile devices, messaging apps and emails. JP Morgan acknowledged its conduct violated securities laws. The penalty was one of the first major enforcement actions brought under SEC Chair Gary Gensler. Morgan Stanley Morgan Stanley has tentatively agreed to pay $125 million to the SEC and $75 million to the CFTC to resolve investigations into its record-keeping practices, it said in July. It already set aside $200 million in its second quarter earnings to prepare for the penalty. Bank of America
Bank of America earmarked about $200 million in the second quarter for litigation tied to unauthorized electronic messaging by its employees. The bank said in late July that it was in settlement talks with the SEC and the CFTC.Citigroup Inc Citi is being investigated by the SEC for communication over unapproved channels used by its employees, the company disclosed in a regulatory filing in February.
The company set aside reserves to deal with the matter, Chief Financial Officer Mark Mason said during its second quarter earnings in July. He didn’t specify an amount, but said it was aligned with what peer companies had disclosed.
Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!
By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.
Goldman Sachs
Goldman Sachs is in “advanced discussions” with the SEC and CFTC to resolve the probes, it said in a second-quarter filing. Barclays PLC
British bank Barclays said it had reached an agreement in principle to pay $200 million to U.S. regulators, the company said in its half-year earnings in July. Credit Suisse Group AGCredit Suisse said in July it had booked a $200 million litigation provision mainly relating to the record-keeping rules. Deutsche Bank AG Deutsche Bank announced late July that it set aside 165 million euros in additional provisions for possible regulatory enforcement, in part from the SEC and CFTC investigations. UBS Group AG UBS Group said U.S. regulators were conducting investigations into the bank and other financial institutions relating to business communications.
(Reporting by Angelique Chen; Editing by Lananh Nguyen and Sam Holmes)
Wanda Rich has been the Editor-in-Chief of Global Banking & Finance Review since 2011, playing a pivotal role in shaping the publication’s content and direction. Under her leadership, the magazine has expanded its global reach and established itself as a trusted source of information and analysis across various financial sectors. She is known for conducting exclusive interviews with industry leaders and oversees the Global Banking & Finance Awards, which recognize innovation and leadership in finance. In addition to Global Banking & Finance Review, Wanda also serves as editor for numerous other platforms, including Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.
