Facebook challenges financial regulators: FINRA

Social networking sites like Facebook and LinkedIn raise "serious new challenges" for financial regulators, the head of the largest U.S. independent securities regulator said on Tuesday. Wall Street bankers and analysts increasingly want to use social networking to connect and interact with customers, Richard Ketchum, the chief executive of the Financial Industry Regulatory Authority (FINRA) said. But as these sites are currently designed they may not allow firms to keep the kind of archives of their employees' business communications required by regulators, Ketchum told industry group Securities Industry and Financial Markets Association's (SIFMA) annual meeting.