{"id":22801,"date":"2023-09-28T02:14:53","date_gmt":"2023-09-28T02:14:53","guid":{"rendered":"https:\/\/microloannexus.com\/investing\/exclusive-us-sec-nearing-settlement-with-wall-street-firms-over-whatsapp-probe-sources\/"},"modified":"2023-09-28T02:14:54","modified_gmt":"2023-09-28T02:14:54","slug":"exclusive-us-sec-nearing-settlement-with-wall-street-firms-over-whatsapp-probe-sources","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=22801","title":{"rendered":"Exclusive-US SEC nearing settlement with Wall Street firms over WhatsApp probe -sources"},"content":{"rendered":"
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\u00a9 Reuters. The headquarters of the U.S. Securities and Exchange Commission (SEC) are seen in Washington, July 6, 2009. REUTERS\/Jim Bourg\/File photo<\/span>
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By Chris Prentice and Carolina Mandl<\/p>\n

NEW YORK (Reuters) -The U.S. Securities and Exchange Commission (SEC) is finalizing settlements with around two dozen Wall Street firms to resolve investigations into record-keeping lapses, said two people with knowledge of the matter.<\/p>\n

The settlements with broker-dealers and investment advisers would mark the latest enforcement action in the SEC’s two-year crackdown on Wall Street’s use of WhatsApp and other unapproved messaging apps that has so far resulted in more than $2 billion in fines. <\/p>\n

Under the deals being finalized with the SEC, the firms would pay fines, admit wrongdoing and commit to fixing the lapses, including by hiring independent consultants to overhaul their record-keeping programs, the two sources said. One said some firms could pay as much as $50 million.<\/p>\n

The SEC is expected to announce some of the settlements in one group ahead of its fiscal year-end on Sept. 30, but the negotiations are fluid, said a third source familiar with the situation. <\/p>\n

The sources, who spoke on the condition of anonymity because SEC investigations are confidential, said roughly two dozen firms are involved but Reuters could not immediately ascertain their names. <\/p>\n

At least 16 broker-dealers and investment advisers have disclosed in regulatory filings that the SEC is probing their communications, including Truist Financial (NYSE:) Corp, US Bancorp (NYSE:), Voya Financial (NYSE:) Inc, LPL Financial (NASDAQ:), Interactive Brokers (NASDAQ:) and Oppenheimer. <\/p>\n

Fifth Third Bancorp (NASDAQ:) said in an Aug. 7 SEC filing that it is “engaged in settlement negotiations” on the matter and did not anticipate a material impact on its financials.<\/p>\n

Spokespeople for the SEC, Fifth Third, LPL, US Bancorp, Truist, Oppenheimer and Interactive Brokers all declined to comment. Voya did not respond to requests for comment.<\/p>\n

The SEC has previously negotiated two other large group settlements as part of its “off-channel” communications probe. <\/p>\n

The agency has so far brought 30 related enforcement actions, including with separate entities of the same group.<\/p>\n

In August, regulators fined nine Wall Street firms, including Wells Fargo and Societe Generale (OTC:), a combined $549 million over employees’ use of personal messaging apps. In September 2022, it fined 16 firms, including Goldman Sachs, Morgan Stanley, Citigroup <\/span><\/span> (NYSE:) and Bank of America, $1.8 billion for similar lapses.<\/p>\n

On Monday, Reuters reported that in the latest phase of the probe, the SEC has in recent month collected texts and other messages from more than a dozen investment advisers, including private equity and hedge funds, escalating its investigation. <\/p>\n

Because companies do not keep a close watch on personal messaging channels, using them to discuss business puts SEC-regulated employers in breach of requirements to record all business communications. <\/p>\n

The SEC began to home in on Wall Street’s record-keeping problem when JPMorgan Chase (NYSE:) failed to provide documents from at least 2018 pertaining to an unrelated probe, according to a 2021 settlement in which the bank agreed to pay the SEC $125 million to resolve charges over record-keeping lapses.<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. The headquarters of the U.S. Securities and Exchange Commission (SEC) are seen in Washington, July 6, 2009. REUTERS\/Jim Bourg\/File photo By Chris Prentice and Carolina Mandl NEW YORK (Reuters) -The U.S. Securities and Exchange Commission (SEC) is finalizing settlements with around two dozen Wall Street firms to resolve investigations into record-keeping lapses, said<\/p>\n","protected":false},"author":1,"featured_media":9567,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[32],"class_list":{"0":"post-22801","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing","8":"tag-featured"},"yoast_head":"\nExclusive-US SEC nearing settlement with Wall Street firms over WhatsApp probe -sources | Micro Loan Nexus<\/title>\n<meta name=\"description\" content=\"\u00a9 Reuters. 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