According to the AP U.S. regulators are accusing one of Canada's largest banks of engaging in hundreds of millions of dollars in sham futures trades to reap tax benefits on its holdings of company stocks.
The Commodity Futures Trading Commission on Monday sued Royal Bank of Canada, saying the bank also concealed the true nature of the trades and made false statements to a futures trading exchange. The agency said it is the largest case it has brought against so-called wash trades, which cancel each other out.
The CFTC alleged that Royal Bank of Canada made the trades in stock futures contracts from 2007 to 2010 with two foreign subsidiaries. The transactions weren't "at arm's length," as required by law, and reported by the bank to the exchange, the agency said….
Read all about it at http://finance.yahoo.com/news/cftc-accuses-royal-bank-canada-200233322.html
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