Morgan Stanley has hit bankers with financial penalties running up to more than $1mn per employee for conducting official business on WhatsApp and other messaging platforms.
The forfeitures come as the bank tries to punish employees for a scandal that tarnished the group’s reputation and resulted in it paying $200mn of regulatory fines last year.
Ranging from a few thousand dollars to more than $1mn per individual, the penalties are based on a points system that takes into account factors including the number of messages sent, the banker’s seniority, and whether they received prior warnings, said people briefed on the matter.
Depending on the size of the penalty, the funds have either been clawed back from previous bonuses or will be docked from future pay.
Morgan Stanley declined to comment.
The employee penalties are the latest fallout from a wide-ranging crackdown on Wall Street by US regulators over the use of personal phones and unapproved apps. The multiple investigations have resulted in more than $1bn in fines across the banking industry.
