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CIBC could face suits from U.S. regulators

Date: Wednesday, January 28, 2004

The Canadian Imperial Bank of Commerce faces regulatory action for providing more than $1 billion in financing to investors who made illegal mutual fund trades, the New York Times reported on Wednesday. Citing people briefed on the inquiry, the paper said New York Attorney General Eliot Spitzer and the Securities and Exchange Commission are considering filing suits within a couple of weeks against the Toronto-based bank for arranging the financings. Regulators could also file suit against senior executives who were aware of the activity, it said. According to the paper, the bank helped hedge funds make far bigger bets in mutual fund shares, mainly though the use of derivatives.