Wall Street company fined a total of $1.8bn (£1.7bn) by US financial watchdogs

• The probe, according to the Securities and Exchange Commission (SEC), “uncovered persistent off-channel contacts.”
• Among the 16 companies mentioned by regulators were Barclays, UBS, and Goldman Sachs.
• As a result of the probe, some bankers have lost their jobs, shaking up Wall Street.

Some of Wall Street’s biggest companies have been fined a total of $1.8bn (£1.7bn) by US financial watchdogs after personnel used their personal devices and applications to discuss agreements and trades.

The probe, according to the Securities and Exchange Commission (SEC), “uncovered persistent off-channel contacts.”

Among the 16 companies mentioned by regulators were Barclays, UBS, and Goldman Sachs.

A major cause for the SEC and Commodity Futures Trading Commission is the broad industry investigation (CFTC).

The SEC issued fines totaling $1.1 billion in separate releases on Tuesday, while the Commodity Futures Trading Commission said it had levied penalties totaling $710 million.

“Trust is ultimately what makes finance work. The market participants we have charged today have broken that trust by failing to uphold their recordkeeping and books-and-records duties “Gary Gensler, the SEC’s head, said.

Using apps on their personal devices, such as text messages and WhatsApp, bank employees routinely chatted about business matters with coworkers, clients, and other third-party advisers from January 2018 through September 2021, according to regulators.

Most of the talks were not saved by the companies, in violation of federal regulations requiring broker-dealers and other financial institutions to maintain records of business communications.

According to the agencies, this made it more difficult for regulators to make sure important laws were followed and acquire data for unrelated investigations.

As a result of the probe, some bankers have lost their jobs, shaking up Wall Street. Additionally, it has compelled businesses to implement strict new regulations to prevent the illicit usage of apps.

Also Read

The EU blames sabotage for the Nord Stream leaks

The EU has claimed that sabotage was to blame for leaks in...