NEW YORK, Aug 5 (Reuters) - Morgan Stanley agreed to
pay $200 million to U.S. regulators to resolve investigations
into its record-keeping practices, it said on Friday.
The bank will pay the U.S. Securities and Exchange
Commission $125 million and the Commodity Futures Trading
Commission $75 million to resolve probes into employee
communications on messaging platforms that had not been approved
by the company, it said in a filing.
Morgan Stanley had already set aside $200 million in its
second quarter earnings to prepare for the penalty. Separately,
Bank of America earmarked about $200 million for
unauthorized electronic messaging by its employees, while
Citigroup and Barclays also put aside cash to cover
similar expected fines.
The SEC has been looking into whether Wall Street banks have
been adequately logging employees' text messages and emails as
bankers moved to remote working during the pandemic. Regulators
require banks to keep records of their staff communications, and
typically ban the use of personal email, texts and messaging
applications for work purposes.
(Reporting by Saeed Azhar; Editing by David Gregorio)