RBC to pay $35 million over U.S. regulator's trading scheme lawsuit

Thu Dec 18, 2014 2:31pm EST
 
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NEW YORK Dec 18 (Reuters) - Royal Bank of Canada has agreed to pay $35 million to resolve a lawsuit by the U.S. Commodity Futures Trading Commission, accusing it of running a massive trading scheme to gain lucrative Canadian tax benefits.

The settlement, disclosed in papers filed Thursday in Manhattan federal court, would resolve claims that a group of RBC employees improperly coordinated to allow bank subsidiaries to buy and sell stock futures without taking a position in the market.

RBC neither admitted nor denied the allegations in settling the lawsuit, which was filed in 2012. The deal was approved by U.S. District Judge Alvin Hellerstein. (Reporting by Nate Raymond in New York; Editing by Bernadette Baum)