Hedge Funds, PE Firms Aim to Temper SEC’s WhatsApp Probe (1)

Top hedge funds and private equity firms including Citadel, KKR & Co. and Blackstone Inc. are discussing ways to blunt any fallout from the Securities and Exchange Commission’s crackdown on the financial industry’s use of disappearing messaging apps.

With the regulator stepping up efforts to police Wall Street’s electronic communications, some of the firms have held talks on a legal approach and what potential settlements could look like, according to people familiar with the discussions. The goal is to minimize any fines and ensure that if they reach a settlement, no firm is singled out for a harsher penalty, ...