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The
U.S. Securities and Exchange Commission (SEC) began probing
banks' record-keeping practices relating to the use of personal
devices last year, Reuters reported at the time, and the
Commodity Futures Trading Commission (CFTC) is also scrutinizing
the issue, bank disclosures show.
Here is a list of fines that financial firms have already paid
or expect to pay, according to recent disclosures:JP Morgan
Chase & Co JP Morgan Chase & Co's broker-dealer subsidiary was
fined $200 million last year by the SEC and CFTC for widespread
failures to preserve staff communications on personal mobile
devices, messaging apps and emails. JP Morgan acknowledged its
conduct violated securities laws. The penalty was one of the
first major enforcement actions brought under SEC Chair Gary
Gensler. Morgan Stanley Morgan Stanley has tentatively agreed to
pay $125 million to the SEC and $75 million to the CFTC to
resolve investigations into its record-keeping practices, it
said in July. It already set aside $200 million in its second
quarter earnings to prepare for the penalty. Bank of America
Bank of America earmarked about $200 million in the second
quarter for litigation tied to unauthorized electronic messaging
by its employees. The bank said in late July that it was in
settlement talks with the SEC and the CFTC.Citigroup Inc Citi is
being investigated by the SEC for communication over unapproved
channels used by its employees, the company disclosed in a
regulatory filing in February.
The company set aside reserves to deal with the matter, Chief
Financial Officer Mark Mason said during its second quarter
earnings in July. He didn't specify an amount, but said it was
aligned with what peer companies had disclosed.
Goldman Sachs
Goldman Sachs is in "advanced discussions" with the SEC and CFTC
to resolve the probes, it said in a second-quarter filing.
Barclays PLC
British bank Barclays said it had reached an agreement in
principle to pay $200 million to U.S. regulators, the company
said in its half-year earnings in July. Credit Suisse Group
AGCredit Suisse said in July it had booked a $200 million
litigation provision mainly relating to the record-keeping
rules. Deutsche Bank AG Deutsche Bank announced late July that
it set aside 165 million euros in additional provisions for
possible regulatory enforcement, in part from the SEC and CFTC
investigations. UBS Group AG UBS Group said U.S. regulators were
conducting investigations into the bank and other financial
institutions relating to business communications.
(Reporting by Angelique Chen; Editing by Lananh Nguyen and Sam
Holmes)
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