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January 31, 2024

Culture, regulation: insights from WhatsApp bank fines.

TLDR: US regulators are cracking down on banks that use unofficial ways to communicate with clients.

Goldman Sachs fired its head of transaction banking last September for breaking communication rules.

Last year, nine Wall Street firms paid a total of $555mn to US regulators for similar breaches.

How banks communicate with their clients is crucial for maintaining and attracting new customers. Poor communication practices can result in hefty fines and the loss of key personnel. For instance, last September, Goldman Sachs dismissed its head of transaction banking for breaking communication rules. Meanwhile, in August, nine Wall Street firms paid a total of $555mn in fines to US regulators. These cases highlight the importance of proper communication channels and practices in the banking industry.