Thursday Sept 29 2022
Individuals using cell phones for compnay communications brought big fines from the SEC.
On Tuesday, two U.S. regulators announced $1.8 billion in penalties to be paid by financial institutions including Goldman Sachs (GS), Bank of America (BAC), and Morgan Stanley (MS) over staff usage of personal devices to discuss work-related matters, a violation of recordkeeping provisions of federal securities laws.
"From January 2018 through September 2021, the firms’ employees routinely communicated about business matters using text messaging applications on their personal devices," SEC Chair Gary Gensler said in a statement. "The firms did not maintain or preserve the substantial majority of these off-channel communications, in violation of the federal securities laws."
The Securities and Exchange Commission’s (SEC) penalty totaled $1.1 billion across 15 broker-dealers: Barclays Capital (BCS), Bank of America, Citigroup (C), Credit Suisse (CS), Deutsche Bank, Goldman Sachs, Morgan Stanley, UBS Securities, Jefferies, Nomura Securities, and Cantor Fitzgerald. The Commodity Futures Trading Commission (CFTC) charged 11 institutions a collective $710 million fine.
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Where are the internal auditors and managers when all this is going on?
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