In the latest development in the ongoing probe in late trading of mutual fund shares by hedge funds, the Canadian Imperial Bank of Commerce agreed to pay a hefty $125 million to settle a case before the Securities and Exchange Commission. The case was initiated by New York State Attorney General Eliot Spitzer.
The agreement calls for CIBC to hand over $100 million in fees and gains that allegedly resulted from late trades in mutual fund shares by hedge fund clients. The remaining $25 million comes in the form of multiple penalties to be paid by the bank. So