The lawyer representing RBC against the CFTC’s allegations of improper stock trading said the bank will not accept a settlement deal as they committed no wrongdoing.
“In serious matters people dialogue with each other, but unequivocally our position is that we didn’t do anything wrong here,” said Arthur Hahn, partner at Katten Muchin Rosenman LLP.
The CFTC sued RBC on the allegations that Canada’s largest bank operated a multi-hundred million dollar wash trading scheme. According to the complaint, subsidiaries in Europe, the Bahamas, Toronto, and the Cayman Islands traded large blocks of shares at set times and prices in order to benefit from Canadian tax credits. The CFTC alleges that RBC presented false information when faced with official questioning.
On April 3, RBC’s CEO Gord Nixon called the allegations “unwarranted.” The bank was offered a cash penalty, but declined.
RBC says that it informed its regulator and exchange, OneChicago, as long ago as 2005 of the large block trades between various subsidiaries.
“We have a strong case here and look forward to presenting it to the judge,” said CFTC Commissioner Bart Chilton.
