Morgan Stanley: WhatsApp Scandal $1 Million Fines on Employees

Morgan Stanley has reportedly imposed fines of up to $1 million on several of its employees or executives for conducting business using messaging apps such as WhatsApp and thereby violating rules that require them to keep records of their transactions.

According to anonymous sources cited by some financial magazines, the internal penalties range from thousands of dollars to over $1 million in some cases.

Stop Using That Chat

These fines come months after Morgan Stanley and other big banks agreed to pay large penalties to US regulators for the improper use of WhatsApp and other similar tools by their employees.

In total, 11 firms agreed to pay fines totaling $1.8 billion in September for violating rules on how they must keep records of communications about their business.

The fines imposed by Morgan Stanley also highlight the challenges that banks and other financial institutions face in trying to control and monitor the use of messaging apps by their employees.

The ease of use and convenience of these apps has made them a popular choice among employees, but it has also made it difficult for banks to ensure that they are being used appropriately and that all communications are being recorded and tracked.

The Choosen One

Morgan Stanley, has recently reaffirmed its position as a top pick for investors. Despite shedding 1.67% to $95.51 on Tuesday, the bank's shares have been performing well in the market, with a 52-week high of $109.73 achieved on February 10th.

One of the stocks that Morgan Stanley is particularly bullish about is Tesla.

Some bank's analysts, predicts a "shake out" for the electric-vehicle market, as companies race to secure a piece of the growing market and risk oversupplying it. This comes ahead of Tesla's fourth-quarter earnings report, which is set to be released after the bell on Wednesday.

Tesla recently cut prices between 6% and 20% on its electric vehicles (EVs) in Europe and the US, a move that has been met with mixed reactions on Wall Street.

Also notes that as the leader in the global EV market, Tesla's aggressive approach to pricing puts significant pressure on its competitors. He also questions whether other companies will be able to keep up with Tesla in the race for market share.

Morgan Stanley's continued support for Tesla, despite the recent price cuts, shows the bank's belief in the company's ability to weather market fluctuations and maintain its position as a leader in the EV industry.