Regulators Are Unsurprisingly Concerned About The Super-Secret Chatting Application From Goldman and Deutsche Bank

Who's nosey now, New York State Department of Financial Services.
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Remember when like everyone in finance caught Bloomberg spying on them while they were chatting with their bros on the very terminals that they had come to love and trust over the years?

And remember how like a lot of other Wall Street chat conversations became public and were chock full of both puerile, naughty behavior and illegal chicanery?

You know what we're talking about Credit Suisse.

Well Goldman, Citi and Deutsche Bank joined with a few other banks to make this sordid episode a piece of history. They backed the creation of a messaging startup called Symphony, which offers financial service workers total privacy and unrivaled security.

Think of it like Snapchat, but instead of dick pics you're talking about Libor.

So, problem solved. Awesome.

A new messaging service backed by some of the biggest names on Wall Street is attracting scrutiny from New York's regulators.

Oh sh!t, regulators. Forgot about those dudes.

Anthony J. Albanese, Acting Superintendent of Financial Services for the State of New York, has sent a letter to the chief executive of Symphony, asking for information about their instant messaging service.

So what, the chief regulator in New York State isn't comfortable with Goldman and Citi chatting in total privacy about whatever?

What can they do to put you at ease, New York?

According to Albanese's letter, this:

We will require that banks regulated by the Department provide information on how they intend to use Symphony products, including: which Symphony products they will use; what personnel will be using these products; whether these products will be used in conjunction with or to the exclusion of other instant messaging and other communications services; how they will ensure that messages created using Symphony products will be retained; whether they intend to use Symphony's data deletion capabilities; whether their use of Symphony's encryption technology can be used to prevent review by compliance personnel or regulators; how they intend to utilize Symphony's open source capabilities; and how they intend to prevent their employees from misuse of these open source capabilities, such as to circumvent compliance controls and regulatory review.

Where's the trust? These are private sector companies that deserve some privacy.

Seems like a bit of an overstep...

Fair point.

The chat service out to kill Bloomberg is in regulators' crosshairs [BI]

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