Royal Bank to Pay $35 Million to End CFTC Wash-Trade Suit
This article is for subscribers only.
Royal Bank of Canada will pay $35 million to settle a lawsuit brought by U.S. regulators over claims that it engaged in more than 1,000 illegal futures trades worth hundreds of millions of dollars to garner tax benefits tied to equities.
The bank neither admitted nor denied wrongdoing, according to a consent order signed by a judge today in the 2012 lawsuit by the Commodity Futures Trading Commission. U.S. District Judge Alvin Hellerstein in Manhattan permanently barred the bank from entering into or confirming so-called wash trades.