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July 14, 2022 at 10:30 AM
What You Need to Know
- Earlier, regulators imposed a similar fine on JPMorgan, noting that managers had used WhatsApp and personal email for work-related communication.
Morgan Stanley said it expects to pay a $200 million fine related to a broad U.S. investigation into the use of unapproved personal devices.
That amount is based on discussions the firm has had with the Securities and Exchange Commission and the Commodity Futures Trading Commission, who have been probing the matter across Wall Street.
Finance firms are required to scrupulously monitor communications involving their business.
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. Investigators have been looking into banks including JPMorgan Chase & Co, Citigroup Inc. and Goldman Sachs Group Inc.
Morgan Stanley disclosed the expense number in its second-quarter earnings statement, saying the $200 million was “related to a specific regulatory matter concerning the use of unapproved personal devices and the firm’s record-keeping requirements.”
Total non-interest expenses totaled $9.71 billion, higher than the $9.53 billion analysts were expecting.
