Banking giants like JPMorgan and Bank of America collectively face more than $1 billion in regulatory fines because their employees used unapproved tools like email and WhatsApp.
The United States Securities and Exchange Commission (SEC) last year began investigating banks’ record-keeping practices linked to the use of personal devices, and the Commodity Futures Trading Commission (CFTC) is also looking into the matter, they announced. the institutions.
The JPMorgan broker was fined $200 million last year by the SEC and CFTC for widespread failure to preserve team communications across personal mobile devices, messaging apps and emails.
JPMorgan admitted that its conduct violated securities laws.
Morgan Stanley has provisionally agreed to pay $125 million to the SEC and $75 million to the CFTC to close the investigation.
The company has already set aside $200 million to pay the fine.
Bank of America has earmarked nearly $200 million for litigation related to unauthorized electronic messages. The bank said in July that it was in talks with the agencies.
Citi is under investigation for communicating through unapproved channels used, the company said in February. The bank has made reservations to deal with the matter, Chief Financial Officer Mark Mason said in July, without specifying a figure.
Goldman Sachs is in “advanced discussions” with the bodies to resolve the investigations, it said in a regulatory filing.
British bank Barclays said it had reached an agreement in principle to pay US regulators $200 million.
Credit Suisse said in July that it had made a $200 million litigation provision primarily linked to record-keeping rules.
Deutsche Bank announced in late July that it had set aside €165 million in additional provisions for possible regulatory enforcement as part of the investigations.
UBS said US regulators are conducting investigations into the bank and other financial institutions related to commercial communications.
Source: CNN Brasil
