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Big Banks face $1bn Fine for Using Unauthorized Messaging Tools

Big banks face fines of more than $1 billion for using unapproved messaging tools such as email and apps such as WhatsApp.

The list of financial firms and fines already paid or expected to pay includes companies such as JP Morgan, Morgan Stanley, Bank of America, Citi, Goldman Sachs, Barclays, Credit Suisse Group, Deutsche Bank and USB Group.

The broker-dealer subsidiary of JP Morgan Chase & Co has been fined $200 million by the SEC and the CFTC for failing to preserve staff communications on personal mobile devices, messaging apps and emails.

Morgan Stanley agreed to pay $125 million to the SEC and $75 million to the CFTC to settle investigations into its record-keeping practices.

Bank of America set aside about $200 million in the second quarter for litigation related to unauthorized electronic messaging by its employees.

Citibank did not disclose the amount it has spent on resolving the SEC’s investigation on the company’s unauthorized channels used by its employees.

Goldman Sachs is already in “advanced discussions” with the SEC and the CFTC to resolve the misconduct investigation.

Barclays has reached an agreement in principle to pay $200 million to U.S. regulators.

IT World Canada Staff
IT World Canada Staffhttp://www.itworldcanada.com/
The online resource for Canadian Information Technology professionals.

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Jim Love, Chief Content Officer, IT World Canada

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