Podcast Center
Video Center
Webcasts
Resource Center
Events
August 08, 2023 at 12:48 PM
What You Need to Know
- Several Wells Fargo units agreed to pay $125 million to the SEC and $75 million to the CFTC on Tuesday.
- The penalties are tied Wells Fargo and other banks' use of unofficial communication tools to conduct business.
- Regulators say that using messaging tools that delete communications automatically makes it significantly harder to investigate wrongdoing.
Wells Fargo & Co. and BNP Paribas SA are among firms that will pay hundreds of millions of dollars in penalties for employees using unofficial communications like WhatsApp and personal email to conduct business — the latest in U.S. regulators’ crackdown on Wall Street’s failure to keep records.
Wells Fargo units agreed to pay $125 million to the Securities and Exchange Commission and BNP will pay $35 million, the regulator said Tuesday. The two lenders will pay $75 million each over similar violations by their derivatives brokers, the Commodity Futures Trading Commission said.
In all, the CFTC announced penalties of $266 million, and the SEC said firms had agreed to pay it $289 million. Total fines for the probes into messaging practices have now crossed $2.5 billion, making it one of the biggest US enforcement efforts of the past decade.
What began as a look at trading desks’ use of chat apps has expanded into a look into all of finance’s use of any kind of communication tool that doesn’t save records appropriately.
Hedge funds and private equity are also under investigation for their use of personal communication apps.
Wells Fargo spokesperson Laurie Kight said in a statement that the company was pleased to resolve the matter. BNP declined to comment.
Financial firms are required to scrupulously monitor and save communications involving their business to head off improper conduct.
Investigations Harder
Regulators say that using messaging tools that delete communications automatically makes it significantly harder to investigate wrongdoing.
