Hedge Funds

CIBC to agrees to pay $125 million to settle late trading case


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