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Top U.S. investment banks face fines for employee use of apps

Top investment banks risk fines for using apps

Regulators are set to impose roughly $1 billion in fines on the five largest U.S. investment banks for failing to monitor employees using unauthorized messaging apps.

Morgan Stanley revealed Thursday that it plans to pay a fine of $200 million, the same amount JPMorgan Chase has paid as authorities use the settlement as a benchmark for the industry. Citigroup has a reserve in line with what other banks have disclosed, the company’s chief financial officer said on Friday.

The Goldman Sachs Group and Bank of America have also had advanced discussions with regulators to each pay a similar amount, according to people familiar with the talks who asked not to be identified because the matter is not public.

The discussions are not yet over and the sanctions could still evolve.

The grand total represents a rare escalation from regulators looking into such an issue, with fines tending to be significantly lower in the past. The sweeping civil investigations are among the heaviest penalties ever imposed on U.S. banks for record-keeping failures, eclipsing a $15 million fine imposed on Morgan Stanley in 2006 for its failure to keep emails.

Financial firms are required to carefully monitor communications involving their business to prevent inappropriate behavior. That system, already strained by the proliferation of mobile messaging apps, came under strain as companies sent workers home soon after the coronavirus outbreak began.

Lawsuit claims Skittles candy contains toxins

Mars has been sued by a consumer who claims Skittles candy is unsafe because it contains a known toxin that the company pledged six years ago to phase out.

In a proposed class action lawsuit filed Thursday in federal court in Oakland, Calif., Jenile Thames accused Mars of endangering unsuspecting Skittles eaters by using “increased levels” of titanium dioxide, or TiO2, as an additive. eating.

The lawsuit also said titanium dioxide would be banned in the European Union next month after a food safety regulator ruled it unsafe because of its “genotoxicity” or ability to alter body fat. DNA.

The lawsuit seeks unspecified damages for fraud and violations of California consumer protection laws.

Mars did not immediately respond to requests for comment on Friday.

The McLean, Va.-based company, which is privately held, pledged in February 2016 to remove artificial colors from its food products within the next five years.

In October 2016, he confirmed that titanium dioxide was among the colors removed, according to the nonprofit Center for Food Safety, citing an email from Mars.

According to the lawsuit, titanium dioxide is used in paint, adhesives, plastics and roofing materials, and can cause DNA, brain and organ damage, as well as liver and kidney damage. .

The operators of a Texas payments company with links to the UK has pleaded guilty in the US to money laundering failures after their firm facilitated the shipment of $160 million to Nigeria over about three years . Anslem Oshionebo, 45, and Opeyemi Odeyale, 43, were sentenced to 27 months in prison for failing to maintain effective controls against money laundering and the transmission of unlicensed money, according to US court documents. The Dallas-based company they owned and operated, Ping Express US, sent customer funds to Nigeria, Kenya and other African countries. In a three-year period highlighted by the Department of Justice, the firm did not report a single suspicious transaction to regulators despite processing a “significant amount” of them.

Voting advisory firm Institutional Shareholder Services on Friday recommended that Spirit Airlines shareholders vote against the proposed deal with Frontier Group Holdings. Spirit had said on Wednesday it planned to delay a shareholder vote on its sale to Frontier Group for the fourth time as part of a fight to garner enough support for a deal that could create the fifth-largest US airline. ISS reiterated its position and said JetBlue Airways Corp’s watered-down offer was “favorable” to Spirit shareholders. Earlier this week, Frontier declined to further increase its $2.7 billion offer.