Big banks face fines of more than US$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 US$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 US$125 million to the SEC and US$75 million to the CFTC to settle investigations into its record-keeping practices.
Bank of America set aside about US$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 US$200 million to U.S. regulators.
The sources for this piece include an article in Reuters.