Wall Street's New Favorite Way To Swap Secrets

According to an article on Bloomberg, apps like WhatsApp are being used to trade/discuss confidential information on Wall Street. It sounds like there have been several instances where people have actually got caught doing this. For example, a Jefferies banker recently landed in hot water over sharing confidential information and there is also evidence of hedge fund employees setting up a group chat to share market information.

From traders to bankers and money managers, just about everyone in finance is embracing these apps as an easy, and virtually untraceable, way to circumvent compliance, get around the HR police and keep bosses in the dark. And it’s happening despite the industry’s efforts to crack down on unmonitored communications, according to conversations with employees at more than a dozen of Wall Street’s most recognizable firms.

In many ways, the development reflects a cultural shift. At big banks and small shops alike, rowdy trading desks and the boys-will-be-boys ethos are no longer tolerated, at least publicly. But the widespread use of encrypted apps is also raising a deeper concern: It could enable reckless behavior that’s all but impossible to police and lead to abuses like the chat-room scandals involving Libor manipulation and currency rigging.

Anyone familiar with this issue?

Reference: Wall Streets Favorite Way To Swap Secrets