The U.S. Securities and Exchange Commission (SEC) began probing banks' record-keeping practices relating to the use of personal devices last year, Reuters reported at the time, and the Commodity Futures Trading Commission (CFTC) is also scrutinizing the issue, bank disclosures show.
JP Morgan Chase & Co's broker-dealer subsidiary was fined $200 million last year by the SEC and CFTC for widespread failures to preserve staff communications on personal mobile devices, messaging apps and emails. JP Morgan acknowledged its conduct violated securities laws.
Morgan Stanley has tentatively agreed to pay $125 million to the SEC and $75 million to the CFTC to resolve investigations into its record-keeping practices, it said in July. It already set aside $200 million in its second quarter earnings to prepare for the penalty.