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JPMorgan Bosses Hooked on WhatsApp Fuel $200 Million Penalty

  • Wall Street firms must archive employees’ work communications
  • But SEC, CFTC say managers broke rules they should’ve enforced
JPMorgan Chase Bank Locations Ahead Of Earnings Figures
Photographer: Ting Shen/Bloomberg
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JPMorgan Chase & Co. executives were supposed to make sure employee communications were archived for regulatory scrutiny. But for years, even the bosses were using their mobile phones to tap out work-related messages -- a practice so pervasive that U.S. authorities dropped the hammer Friday, imposing $200 million in fines.

The revelation that even “managing directors and other senior supervisors” had shrugged off surveillance duties by using platforms such as WhatsApp or personal email addresses helped prompt the Securities and Exchange Commission and Commodity Futures Trading Commission to impose unusually stiff penalties on the firm and its subsidiaries for record-keeping violations.