USA – Billions fine for financial companies – Economy


Unregulated communication via messenger services such as Whatsapp is a problem for a number of large banks and financial firms United States to be expensive. The 16 companies will pay a total of a good 1.1 billion dollars (almost 1.15 billion euros) in fines, as the US Securities and Exchange Commission announced on Tuesday. Among others, Barclays Capital, Goldman Sachs, Morgan Stanley and Deutsche Bank Securities are paying $125 million each. “Deutsche Bank has fully cooperated with the supervisory authorities on this industry-wide issue,” said a spokesman for Germany’s largest financial institution on Wednesday in Frankfurt. “The bank has also introduced new technical solutions for text and chat messaging that are easy to use and in line with legal requirements. We will continue to expand these solutions to meet the expectations of regulators and our customers.” The financial effects of the agreement reached with the US Securities and Exchange Commission had already been fully taken into account as of June 30, Deutsche Bank said: “Therefore, we do not expect any effects on our results in the third quarter.” Employees of the financial institutions exchanged information on business matters via messenger apps. The US authorities saw this as a serious breach of the rules, since the companies could not archive the communication in the encrypted services as required. SEC boss Gary Gensler criticized that the financial firms had thereby damaged market confidence. At the end of last year, fines totaling 200 million dollars were imposed on the major US bank JP Morgan following the investigation. According to media reports, the German financial regulator Bafin is also currently getting an overview of the extent to which employees of German financial institutions use private means of communication such as Whatsapp for business purposes.



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