Citadel, KKR, Blackstone Discussing Ways to Limit Communications Probe by SEC

 -Top hedge funds and private equity firms including Citadel, KKR and Blackstone are discussing ways to blunt penalties by the Securities and Exchange Commission stemming from their use of disappearing messaging apps, Bloomberg reports.

--The firms have held talks about how to design a legal strategy and what potential settlements could look like as the regulator steps up efforts to police Wall Street's electronic communications, according to the report, which cites people familiar with the discussions. The SEC is asserting that once-widespread use of phones and apps like WhatsApp, Telegram and Signal broke the agency's rules and made investigating securities crimes significantly harder, it said.

--Their goal is to minimize any fines and ensure if they reach a settlement, no firm is singled out for a harsher penalty, says Bloomberg.

--While Citadel has talked with the group, it is still prepared to fight the regulator in court if necessary, according to the report. Citadel is pushing for firms to resist, arguing that the rules requiring brokerages to keep records don't apply to hedge funds and private equity, it said.

https://www.marketscreener.com/quote/stock/KKR-CO-INC-44486777/news/Citadel-KKR-Blackstone-Discussing-Ways-to-Limit-Communications-Probe-by-SEC-Says-Bloomberg-46200591/