Wall Street’s finance giants fined $1.8 billion for illegal messaging by their employees

Some giant companies on Wall Street, the financial center of the USA, were fined $ 1.8 billion for their employees talking on their own devices about deals and purchases.

Some giants on Wall Street have been fined $1.8 billion for their employees talking on their own devices about deals and trades.

According to the regulations, companies in this scope are required to keep a record of all communication made for business purposes. Federal rules cover brokerage firms and financial institutions.

The investigation was concluded by two separate supervisory bodies.

The investigation of the US Securities and Exchange Commission (SEC) found that “extensive use of private communication channels” was found.

Among the 16 companies announced by the SEC are financial giants such as Barclays, UBS and Goldman Sachs.

A parallel investigation was also conducted by the US Commodity Futures Trading Commission (CFTC). The SEC announced a total fine of $1.1 billion, while the CFTC announced a $710 million penalty.

Garry Gensler, Chairman of the U.S. Securities and Exchange Commission, said: “Finance is fundamentally based on trust. These market stakeholders, who failed to meet their obligations to keep proper records, failed to maintain that confidence.”

It was determined that the ‘backdoor messaging’ under investigation was made routinely between January 2018 and September 2021. 

It has been determined that company employees communicate with each other, with their customers and with third-party consultants through applications such as WhatsApp.

Most of this correspondence was not recorded by companies in accordance with federal rules. 

In the investigation that shook Wall Street, it is recorded that some bankers were fired from their jobs. Likewise, companies are being forced to take new steps to prevent the use of personal communication channels.

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