Wall Street texting habit sticks banks with rare RM4.44bil bill

Finance firms are required to scrupulously monitor communications involving their business to head off improper conduct. That system, already challenged by the proliferation of mobile-messaging apps, was strained further as firms sent workers home shortly after the start of the Covid-19 outbreak. — Photo by Daniel Korpai on Unsplash

Regulators are poised to extract about US$1bil (RM4.44bil) in fines from the five biggest US investment banks for failing to monitor employees using unauthorised messaging apps.

Morgan Stanley disclosed on July 14 that it expects to pay a US$200mil (RM889.88mil) fine, the same amount JPMorgan Chase & Co paid as authorities use that settlement as a yardstick for the industry. Citigroup Inc, Goldman Sachs Group Inc and Bank of America Corp also have had advanced discussions with the regulators to each pay a similar figure, according to people with knowledge of the talks who asked not to be identified because the matter isn’t public.