Wall Street banks pay $1.1 billion for messaging breach
16 Wall Street banks and brokerages including Goldman Sachs, Morgan Stanley and Barclays have agreed to pay more than $1.1 billion in fines over allegations of “universal failure,” the U.S. securities regulator said. variable and lasting”.
The U.S. Securities and Exchange Commission said the institutions admitted to violating federal record-keeping requirements after an investigation uncovered “communications beyond the dissemination channel.”
“Ultimately, finances depend on trust. By failing to honor their record-keeping obligations and books and records, the market participants we charged today failed to maintain that trust,” said Gary Gensler, president SEC, said in a statement announcing the fees and penalties on Tuesday.
The investigationwent public last year, rocked Wall Street, put some bankers out of work and prompted lenders to crack down on the unauthorized use of messaging apps like WhatsApp and Signal.