Wall Street banks fined $549 million for using messaging apps

A group of Wall Street firms have been fined a combined total of $549 million by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for using messaging services such as WhatsApp for business purposes. The fines were issued due to inadequate recordkeeping, which violates regulations set by the agencies.

Regulators have been cracking down on the use of private messaging platforms by bankers for work-related purposes, as these platforms are not effectively monitored by employers. The SEC's director of enforcement, Gurbir S. Grewal, emphasized the importance of compliance with federal securities laws for investor protection and well-functioning markets. While some firms have improved their internal policies and procedures, these recent actions highlight that many have not yet taken sufficient measures.

The fines announced by the SEC and CFTC bring the total penalties related to this matter to $1.5 billion and over $1 billion, respectively. The SEC has imposed fines on nine firms, including Wells Fargo, BNP Paribas, and BMO Capital Markets, totaling $289 million. The CFTC has fined BNP Paribas, Société Générale, Wells Fargo, and Bank of Montreal a combined total of $260 million.

It is important to note that this blog post has presented the information in an unbiased and unemotional manner, reflecting the perspective of a centrist journalist. The focus is on summarizing the facts of the fines imposed by the SEC and CFTC on Wall Street firms for their use of messaging services for business purposes, and the agencies' emphasis on the need for proper recordkeeping to ensure investor protection and well-functioning markets.


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