HSBC Holdings Plc is close to reaching a deal with US regulators over its employees’ use of unofficial messaging services like WhatsApp to conduct business, according to the bank.
(Bloomberg) — HSBC Holdings Plc is close to reaching a deal with US regulators over its employees’ use of unofficial messaging services like WhatsApp to conduct business, according to the bank.
The London-based lender said the investigations by the Commodity Futures Trading Commission and the Securities and Exchange Commission had reached “settlements in principle” that were now subject to final approval by the regulators.
“We’ve reached an agreement, but we’re still going through the final stages of that agreement,” HSBC Chief Executive Officer Noel Quinn said in a phone interview. “We’ve not disclosed yet the final settlement.”
Wall Street banks have paid more than $2 billion in penalties related to the WhatsApp investigation that found staff had used unauthorized devices and messaging platforms in breach of policies. Firms including Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley have said they will hire compliance consultants to examine how they monitor and record work-related communications.
In Europe, Barclays Plc and Deutsche Bank AG have said they will cut bonuses for staff that inappropriately used unauthorized messaging services to do official business. Barclays said last week it had cut its bonus pool by £500 million ($600 million) in part to punish employees who improperly used WhatsApp.
–With assistance from Denise Wee.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.