Wells Fargo latest to face probe of use of messaging apps

The SEC and the CFTC are looking at the bank's retention of employee communications related to the use of unapproved messaging apps, it disclosed in a filing.

Wells Fargo & Co. said Tuesday that U.S. regulators are investigating its retention of employee communications over the use of unapproved messaging apps, making it the latest bank to get caught up in an industrywide sweep that’s already yielded over $2 billion in fines.

Probes by the Securities and Exchange Commission and the Commodity Futures Trading Commission were disclosed Tuesday in a regulatory filing. The regulators are investigating “compliance with records-retention requirements relating to business communications sent over unapproved electronic messaging channels,” San Francisco-based Wells Fargo said.

Many of Wells Fargo’s biggest rivals have already settled with the SEC and CFTC over the matter. JPMorgan Chase & Co. agreed to pay $200 million in late 2021. A dozen more, including Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley, reached settlements in September.

HSBC Holdings Chief Executive Noel Quinn said Tuesday that the firm close to reaching a deal with U.S. regulators over the same issue.

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