CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. US Banks Fined For Failure To Archive E-Mails

US Banks Fined For Failure To Archive E-Mails

by Desmond Pickering, LawandTax-News, New York

05 December 2002


One non-trivial by-product of the SEC's crackdown on investment analysts in Wall Street investment banks has been the discovery that the banks have failed to retain all business communications they have sent, both internally and externally, for three years. For two of these years, the data must be kept in an easily accessible place for at least two years. The banks failed to produce requested documents related to the procedures for rating companies and evaluating and paying analysts.

Now five top financial institutions - Morgan Stanley, Goldman Sachs, Citigroup’s Salomon Smith Barney, Deutsche Bank Securities and US Bancorp Piper Jaffray - have been fined $1.65m each by the SEC for failing to keep records of e-mail communications as required by the regulations.

The firms are also required to immediately review their internal procedures for preserving e-mail communications and to report to the regulators within 90 days. The SEC, NASD and NYSE said in a joint statement issued on 6th December that the firms fined had “inadequate procedures and systems to retain and make accessible e-mail communications.”

The firms themselves, despite consenting to the fines, and failing to deny the SEC's accusations, have neither admitted nor denied any wrongdoing.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »