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Wall Street’s texting problem forces unhappy regulators to send a billion dollar message
CNBC ^ | SEP 28 2022 | Bob Pisani

Posted on 09/28/2022 1:51:21 PM PDT by BenLurkin

Last night the SEC announced charges against 15 broker-dealers and an investment adviser for “widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications.”

The firms, including Goldman Sachs, Morgan Stanley, Barclays and UBS, agreed to pay combined penalties of more than $1.1 billion. Separately, the Commodity Futures Trading Commission also announced $710 million in penalties.

The SEC “uncovered pervasive off-channel communications.” That means that many broker-dealers were communicating with each other either on their personal cell phones directly, or using personal email, or using messaging apps like Telegram or WhatsApp that are hard to detect.

According to the SEC, from January 2018 through September 2021, “the firms’ employees routinely communicated about business matters using text messaging applications on their personal devices. The firms did not maintain or preserve the substantial majority of these off-channel communications, in violation of the federal securities laws.”

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy
KEYWORDS:

1 posted on 09/28/2022 1:51:21 PM PDT by BenLurkin
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To: BenLurkin

So when is the FedGov going to fine itself a billion for its employees doing the same thing to avoid public records laws?


2 posted on 09/28/2022 1:54:20 PM PDT by Boogieman
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To: BenLurkin

Correction: SEC fining the stockholders .....


3 posted on 09/28/2022 1:58:40 PM PDT by RetiredTexasVet (Biden not only suffers fools and criminals, he appoints them to positions of responsibility. )
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To: BenLurkin

More communist-driven BS!

When are similar rules going to be applied to all the politicians who get to be multi-millionaires investing on a medium salary?


4 posted on 09/28/2022 2:14:19 PM PDT by SuperLuminal
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To: BenLurkin

Plus they all had computer hard drives that crashed and security cameras that failed to record.


5 posted on 09/28/2022 2:18:53 PM PDT by cicero2k
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To: BenLurkin

The SEC “uncovered pervasive off-channel communications.” That means that many broker-dealers were communicating with each other either on their personal cell phones directly, or using personal email, or using messaging apps like Telegram or WhatsApp that are hard to detect.

According to the SEC, from January 2018 through September 2021, “the firms’ employees routinely communicated about business matters using text messaging applications on their personal devices. The firms did not maintain or preserve the substantial majority of these off-channel communications, in violation of the federal securities laws.”

Now, if they were using insider/congress critters, info for profit/gain or to avoid losses, that would be criminal.

However, if we make good friends along the way and have intelligent relatives. Discussing what has/is happening is life. That should not be criminal.

I had 2 SIL’s, a sibling and a couple of cousins, a couple of nieces/nephews and a direct DNA descendent and a few long time friends where economical discussions have been beneficial to all of us.

Career discussions with former MBA professors and former classmates enabled me to hit the road/Jack with a good early retirement on my own. Instead of be escorted out of a security gate, carrying a Kinko’s box with my personal office belongings and left on a curb with other former employees.

I often was a step ahead of the corporate coups/bloodletting due to discussions between consenting adults.

The younger generations call this networking, and they have it down pat as a personal survival skill.


6 posted on 09/28/2022 2:23:51 PM PDT by Grampa Dave (Anyone, who can make you believe in absurdities, can make you commit atrocities.!" ~ (Voltaire)!, )
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To: Grampa Dave

The younger generations call this networking, and they have it down pat as a personal survival skill.


other wise known as insider trading which in the past has been frowned upon...................


7 posted on 09/28/2022 2:30:12 PM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: PeterPrinciple

So keeping a job or jumping out before the corporate ship sinks is insider trading in your eyes?

Discussing economic realities with 2 sharp SIL’s over 1500 miles from each other and me is insider trading?

We don’t work for a stock company, bank or finance company.


8 posted on 09/28/2022 2:48:58 PM PDT by Grampa Dave (Anyone, who can make you believe in absurdities, can make you commit atrocities.!" ~ (Voltaire)!, )
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To: BenLurkin

“To maintain the INTEGRITY of the market ?” you have automatic computerized trading that has been going on for at least 10-15 years and congressmen and senators constantly cash in both ways via cash from lobbyist’s for firms and then grabbing stocks they KNOW will rise because of the bill to be passed....integrity my rear. I think this life God has given us is far easier when debt is a non factor and the old adage “if you don’t have the money for it ,you don’t deserve it.” Also twist your own wrenches/learn the trades from roofing to sewer installation and all the stuff in between....you will end up answering to no one but the Good Lord.


9 posted on 09/28/2022 3:04:44 PM PDT by mythenjoseph
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To: Boogieman

Bingo they have many players in many countries they don’t spend half their life in D.C. because they like the view.


10 posted on 09/28/2022 3:13:24 PM PDT by Vaduz ( )
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To: BenLurkin

Punish the monkeys

Let the organ grinders go


11 posted on 09/28/2022 3:26:55 PM PDT by E. Pluribus Unum ( We need to “build back<h1better” on the bones and ashes of those forcing us to “Build Back Better.")
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To: Boogieman

Excellent!


12 posted on 09/28/2022 3:43:00 PM PDT by rrrod (6a)
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To: mythenjoseph

FTA: There are ways to capture and monitor texts, chats, etc. but many firms choose not to or may not be aware that automated systems exist to capture these communications.

Hmm... I assume these are company phones.

Look at AMD and NVIDIA stock charts and many others. They are in sync with one another day after day. I read several years ago that Goldman Sachs has the ability to peek a micro second a head of the trades that others see because of some deal with Nasdaq. It came up in a trial of a guy who stole some trading algorithms when he worked there then went to work for another company.

AMD
https://finance.yahoo.com/quote/AMD?p=AMD

NVIDIA
https://finance.yahoo.com/quote/NVDA?p=NVDA


13 posted on 09/28/2022 9:00:11 PM PDT by minnesota_bound (Need more money to buy everything now)
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To: minnesota_bound

Hmm... I assume these are company phones.
I meant connected to the companies internet.


14 posted on 09/28/2022 9:19:44 PM PDT by minnesota_bound (Need more money to buy everything now)
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