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Wall Street’s $1 Billion Messaging ‘Nightmare’

Wall Street’s $1 Billion Messaging ‘Nightmare’

by Starling Insights

Starling Insights Editorial Board

Sep 12, 2022


A Securities and Exchange Commission (SEC) investigation which became public last year has ensnared not only JP Morgan Chase, but a number of banks for record-keeping breaches. In total, banks are expected to pay out more than $1 billion in fines to the SEC and the Commodity Futures Trading Commission (CFTC) as a result of the investigation.

In December 2021, JP Morgan agreed to pay a $200 million penalty to the SEC and CFTC for failure to preserve employee communications on personal mobile devices, messaging apps, and emails.  JP Morgan’s dealings with WeWork, one of its aggressively expanding clients, made up one of a string of cases cited by the SEC to show insufficient record keeping. Other examples included a group of credit traders exchanging over 1,000 messages in a Whatsapp group dubbed “Portfolio Trading/autoex.”

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