On the 17th of December 2021, I read the SEC and CFTC claimed to have not "known" what JP Morgan was doing on WhatsApp, after I've read for a ~dozen years already reading about WhatsApp being free-for-all superjudicial/extrajudicial open-ground for law enforcement surveillance.
https://www.sec.gov/news/press-release/2021-262 "JPMorgan Admits to Widespread Recordkeeping Failures and Agrees to Pay $125 Million Penalty to Resolve SEC Charges: Firm also agrees to implement significant improvements to its compliance controls"
“Since the 1930s, recordkeeping and books-and-records obligations have been an essential part of market integrity and a foundational component of the SEC’s ability to be an effective cop on the beat. As technology changes, it’s even more important that registrants ensure that their communications are appropriately recorded and are not conducted outside of official channels in order to avoid market oversight,” said SEC Chair Gary Gensler."
"JPMS frequently did not search for relevant records contained on the personal devices of its employees. JPMS acknowledged that its recordkeeping failures deprived the SEC staff of timely access to evidence and potential sources of information for extended periods of time and in some instances permanently. As such, the firm’s actions meaningfully impacted the SEC’s ability to investigate potential violations of the federal securities laws."
“Recordkeeping requirements are core to the Commission’s enforcement and examination programs and when firms fail to comply with them, as JPMorgan did, they directly undermine our ability to protect investors and preserve market integrity,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “We encourage registrants to not only scrutinize their document preservation processes and self-report failures such as those outlined in today’s action before we identify them, but to also consider the types of policies and procedures JPMorgan implemented to redress its failures in this case.”
“As today’s order reflects, JPMorgan’s failures hindered several Commission investigations and required the staff to take additional steps that should not have been necessary,” said Sanjay Wadhwa, Deputy Director of Enforcement. “This settlement reflects the seriousness of these violations. Firms must share the mission of investor protection rather than inhibit it with incomplete recordkeeping.”
"JPMS agreed to the entry of an order in which it admitted to the SEC’s factual findings and its conclusion that JPMS’s conduct violated Section 17(a) of the Securities Exchange Act of 1934 and Rules 17a-4(b)(4) and 17a-4(j) thereunder."
https://www.cftc.gov/PressRoom/PressReleases/8470-21 "CFTC Orders JPMorgan to Pay $75 Million for Widespread Use by Employees of Unapproved Communication Methods and Related Recordkeeping and Supervision Failures: JPMorgan Admits Employees Used Texts and WhatsApp on Personal Devices to Conduct Business"
Relatedly, Does Centralisation Decrease the Probability but Increase the Damage of Exploits? and Can a Government Intelligence Agency See *Who* I Am Messaging On WhatsApp are the relvant PRISM questions asked so far about PRISM according to https://security.stackexchange.com/search?q=prism+is%3Aq.
How is this communication not being "appropriately recorded" then, and why is JP Morgan being blamed and not when the US government itself "did not search"? In a sense if the US gov't's PRSIM and SEC were corporate bodies would that not be nearly an anti-trust issue, with the SEC/PRISM stacking the deck?
I mean, speaking plain language like plainlanguage.gov suggests, JP Morgan is not exactly hiding from or able to avoid a CCTV camera on a street like Wall Street. If the .gov was a parent, would that not be about ""recordkeeping requirements" and Responsibility falling on the main parent (US gov) and not blameable on another parent (another entity)?
How am I or are we supposed to think that we can enforce order in the US if PRISM knows and the SEC is playing/acting dumb and stupid (I mean, how is the SEC able to claim the US government's PRISM human readers did not know)?
