The probe by CFTC is likely part of a broader investigation by U.S. regulators, HSBC CEO Noel Quinn told Bloomberg.
“I don’t think it’s specific, I think it’s general across all financial institutions,” Quinn said. “They’re looking at the use of mobiles and WhatsApp and text messages to make sure it’s appropriate.”
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The CFTC and Securities and Exchange Commission (SEC) hit JPMorgan Chase & Co with a $200 million fine last December after discovering that bank staff had been sending work-related information across messaging platforms like WhatsApp or personal emails.
“We obviously have internal procedures and requirements as to the use of non-bank platforms,” HSBC CFO Ewen Stevenson told Bloomberg.
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Aside from the messaging probe, the CFTC is also looking into HSBC’s interest rate swap transactions related to bond issuances, according to the bank’s annual report.
The report also indicated that HSBC Holdings and/or certain affiliates are in the crosshairs of several other regulators, competition authorities and law enforcement, with litigation and investigations ongoing, related to the company’s businesses and operations.
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Other investigations include the U.K. Prudential Regulation Authority’s probe into depositor protection arrangements in the U.K., a probe by the U.K. Competition and Markets Authority regarding the financial services sector, and a class action brought in the New York District Court relating to the Mexican government bond market
Additionally, other probes investing the following: two pending U.S. group actions and a claim issued in the High Court of England and Wales in connection with HSBC Bank’s role as a correspondent bank to Stanford International Bank Ltd from 2003 to 2009, and U.S. litigation brought against several HSBC companies regarding residential mortgage-backed securities.
