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Wall Street banks are said to be in a $1 billion settlement with regulators over merchants allegedly using banned messaging apps like the meta platform’s WhatsApp.
Payments from several banks are expected to exceed $1 billion and are expected to be announced late next month, according to a report by the WSJ on Friday. The Securities and Exchange Commission and the Commodity Futures Trading Commission plan to announce agreements with banks by September 30th.
Banks expected to pay around $200 million include Bank of America (NYSE: BAC), Barclays (BCS), Citigroup (NYSE: C), Deutsche Bank (DB), Goldman Sachs (NYSE: GS) , Morgan Stanley (NYSE:MS) and UBS (UBS), WSJ reported. Jefferies (JEF) and Nomura Holdings (NMR) are also close to negotiations with regulators, although lower fines are expected.
Goldman (GS) announced in late February that the SEC is investigating whether the Wall Street company complies with rules for keeping records of communications between its employees while they use the messaging platform. The Wall Street company was one of several banks to alert regulators to their employees’ use of messaging apps like WhatsApp for business communications.
HSBC also announced in February that the US Commodity Futures Trading Commission is investigating use of the messaging platform for business communications.
JPMorgan Chase (JPM) agreed in December to pay $200 million to settle charges for failing to keep a record of business communications with employees’ personal devices.
The WSJ settlement news comes after Reuters first reported in October that the SEC had approached several banks to keep records of employees’ use of personal devices in work-related communications.