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Royal Bank of Canada (RY) fires back at the CFTC after being accused of running a massive...

Royal Bank of Canada (RY) fires back at the CFTC after being accused of running a massive trading scheme, calling the claims both "absurd" and "meritless." The company notes that the proceedings will not a be financially material event for it. Shares -1.2% premarket.
Comments (2)
  • num1tailhooker
    , contributor
    Comment (1) | Send Message
    The CFTC sat on its hands while MF Global stole billions from those that trusted it. Canadian banks never were involved in the practices that also stole billions from their share holders. Now they are trying to play catch up ball by prosecuting a Canadian bank that has pristine accounting practices. Steal twenty dollars from a "7-11" and go to jail. Steal billions on Wall Street and you are a hero.
    3 Apr 2012, 10:34 AM Reply Like
  • BLUK
    , contributor
    Comments (12) | Send Message
    Yes, you can argue that the setting of priorities at CFTC is somewhat questionable. BUT for those who believed that RY was a well run conservative bank and relatively safe equity investment, they have something to wonder about.
    Even if the trades were cleared with CFTC as RY asserts, were they cleared with the Canadian tax authorities?
    Is RY relying on its federal government support with one arm and meanwhile using its other hand to pick its Government's pockets? Legal or not, entering into sham transactions to avoid taxes is for this bank who is so dependent on profits from its oligopolistic home market ( protected by its government) an issue serious investors cannot ignore , although the implications will be indirect and less than transparent to the public at large, the Canadian Government will not appreciate being spit in the face by the largest of its domestic banks
    3 Apr 2012, 03:16 PM Reply Like
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