CIBC settles with SEC
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Forum Name: CiBC and Edulinx Horror Stories
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Topic: CIBC settles with SEC
Posted By: administrator
Subject: CIBC settles with SEC
Date Posted: 02/August/2005 at 12:25pm
From Globe and Mail...Aug 2
Canadian Imperial Bank of Commerce has agreed to pay $2.4-billion (U.S.) to resolve allegations it aided the collapse of Enron Corp., a massive settlement that will cost the bank more than its entire profit last year.
The CIBC settlement represents the biggest win so far for former investors of the disgraced energy trader, who have filed a $25-billion class-action lawsuit against several of the most powerful financial institutions in the United States and Canada.
The bank said shortly after 4 p.m. that the settlement “does not include any admission of wrongdoing” by the bank. CIBC also said it “agreed to the settlement solely to eliminate the uncertainties, burden and expense of further protracted litigation.”
...For CIBC, the Enron settlement is a costly and painful culmination of various regulatory problems that have afflicted the bank in recent years. In late 2003, the bank paid $80-million to U.S. regulators to settle allegations it aided and abetted the accounting fraud at Enron. Two weeks ago, it struck a $125-million deal with the U.S. Securities and Exchange Commission and New York State Attorney General Eliot Spitzer to settle its alleged role in a mutual fund trading scandal.
This latest settlement is expected to wipe the slate clean for newly minted chief executive officer Gerry McCaughey, who officially replaced John Hunkin today.
---- sorry Mr. McCaughey ... the slate isnt clean yet! There's still your student loan mess to fix
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Posted By: administrator
Date Posted: 02/August/2005 at 12:26pm
Letter to The Editor - Globe and Mail -Aug 2nd
CIBC has settled its involvement in the Enron scandal, but we need to see CIBC pay restitution for all those whose student loan "Continuation of Enrollment" forms were lost, all the direct deposits that weren't applied to loans, and the damaged credit ratings due to CIBC incompetence in their administration of student loans when they owned Edulinx. This is the untold CIBC story. At least the investors and regular banking lost faxes were found in a autowrecking yard in the US. Most of us still dont have a clue where our information ended up.
CIBC avoided their accountability with their student loan mismanagement by disowning Edulinx, selling it to an US firm. With Enron, they were accountable to the SEC. Unfortunately there is no such regulatory body for student loans, other than our incompetent Liberal government who promised in the last election to revamp the student loan system but have so far broken that promise.
Mark O'Meara
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