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Wells Fargo fine overview:
- Who: Wells Fargo, BNP Paribas and The Bank of Montreal are some of a raft of banks and broker-dealers that have collectively agreed to pay $549 million to U.S. regulators.
- Why: The regulators found the companies’ employees failed to maintain electronic records of employee communications.
- Where: The banks are paying the fines in the United States.
- What are my options: Credit Karma provides banking services like checking and savings accounts.
Wells Fargo, BNP Paribas and The Bank of Montreal are some of a raft of banks and broker-dealers that have collectively agreed to pay a fine totaling $549 million to U.S. regulators after their employees failed to maintain electronic records of employee communications, with employees found to be communicating company business through their personal devices.
The news came in two separate press releases issued by the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) on Aug. 8.
The SEC announced charges and $289 million in fines against 11 firms for “widespread and longstanding failures” in record-keeping.
Meanwhile, the CFTC said it had fined four banks a total of $260 million for failing to maintain records required by the agency.
Wells Fargo will have to pay the largest fines after agreeing to a $125 million settlement with the SEC and a separate $75 million settlement with the CFTC.
Subsidiaries of BNP Paribas and Société Générale each agreed to pay $35 million to the SEC and $75 million to the CFTC.
Other firms that agreed to multimillion-dollar settlements include Bank of Montreal, Mizuho Securities USA LLC, Houlihan Lokey Capital Inc., Moelis & Co. LLC, Wedbush Securities Inc. and SMBC Nikko Securities America Inc.
Investigation uncovered longstanding ‘off-channel’ comms
The SEC’s investigation uncovered pervasive and longstanding “off-channel” communications at all 11 firms, the commission said.
The firms admitted that, from at least 2019, their employees often communicated through various messaging platforms on their personal devices, including iMessage, WhatsApp, and Signal, about the business of their employers, the SEC said.
Meanwhile, the firms did not maintain or preserve the substantial majority of these off-channel communications, in violation of the federal securities laws.
Meanwhile, the CFTC said it found each dealer and futures commission merchant it charged failed to stop its employees, including those at senior levels, from communicating both internally and externally using unapproved communication methods, including messages sent via personal text or WhatsApp.
“The Commission’s message could not be more clear — recordkeeping and supervision requirements are fundamental, and registrants that fail to comply with these core regulatory obligations do so at their own peril,” CFTC Director of Enforcement Ian McGinley said.
What do you think of these banking industry fines? Let us know in the comments.
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8 thoughts onWells Fargo, other banks fined $549M for communicating company business via personal devices
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I’ve had issues with Wells Fargo
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I have hade probl problems with both pnp and wells fargo
I started a YouTube channel a little over a year ago and invested a bunch of money in spreadshirt, Google ads, Facebook, and several affiliate marketing schemes while banking with Wells Fargo had me thinking I had good anoletics and people were commenting and buying but I was not receiving any comitions they actually ware suspending my accounts and wanted more and more money please tell me I was scammed or there some kind of compensatio…
I have a business fraud.
Anthony Bethea always feels like the bank always go up on the late fees
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