RBC (RY) Shares Slump as CTFC Investigates Possible 'Wash Sale' Trading Scheme
Tweet
Share
E-mailGet Alerts RY Hot Sheet
Price: $205.23 +0.01%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.6%
EPS Growth %: +5.2%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.6%
EPS Growth %: +5.2%
Join SI Premium – FREE
According to the WSJ Monday, Royal Bank of Canada (NYSE: RY) is being investigated by the Commodity Futures Trading Commission (CTFC) over a possible futures trading scandal at Canada's largest bank.
The trades being looked into by the CTFC will evaluate whether RBC was trading hundreds of millions of dollars in stock futures aimed at getting tax benefits.
The transactions -- billed as "wash trades" -- have been banned as they give the appearance a stock or security was bought or sold but don't hold no risk.
The allegations center on a small group of executives at RBC conducting the trades to maximize tax benefits available to the firm.
Sources suggest this could be the largest trading scandal brought to the CTFC.
Shares are off more than 2 percent in after-hours trading Monday.
The trades being looked into by the CTFC will evaluate whether RBC was trading hundreds of millions of dollars in stock futures aimed at getting tax benefits.
The transactions -- billed as "wash trades" -- have been banned as they give the appearance a stock or security was bought or sold but don't hold no risk.
The allegations center on a small group of executives at RBC conducting the trades to maximize tax benefits available to the firm.
Sources suggest this could be the largest trading scandal brought to the CTFC.
Shares are off more than 2 percent in after-hours trading Monday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Nscale targets up to $3B in US IPO as soon as September - Bloomberg
- FTC files amicus brief challenging Amgen's Enbrel patent acquisition
- Virtu Financial said to explore $3.5B sales of brokerage unit
Create E-mail Alert Related Categories
Rumors, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
