Bank of America (BAC.N) has set aside around $200 million for a regulatory matter connected to the unauthorized use of personal phones.
Last year, Reuters reported that the U.S. Securities and Exchange Commission (SEC) was looking into whether Wall Street banks have been adequately documenting employees’ work-related communications.
The remainder, roughly $200 million, is earmarked for other probes into how the bank kept track of employee communications on their personal devices, like cell phones, Borthwick said.
During its second-quarter earnings, Bank of America recorded $425 million in expenses to address regulatory matters. $225 million of which related to federal regulatory fines issued last week over the bank’s handling of pandemic jobless benefits, Borthwick said.
In December, the SEC and the Commodity Futures Trading Commission fined J.P. Morgan Securities $200 million for “widespread” failures to preserve staff communications on personal mobile devices, messaging apps and emails.
Other major investment banks including Morgan Stanley (MS.N) and Citigroup (C.N) have also put aside cash; to cover similar expected fines, the banks have said.
Regulators require banks to keep records of all business-related communications. As a result financial firms typically ban the use of personal email and other social media channels for work purposes. Although, bankers do not always comply with those rules.
The SEC’s head of enforcement has said banks’ failure to fully record all staff communications; has hampered its probes into other, unrelated issues.