Beside the company, executives who knew about and allowed the improper trading scheme to occur may also be charged, the sources said.
The news did not curb the stock price of CIBC, Canadas third-largest bank, as it was up 69 Canadian cents by noon Wednesday. Since the amount of money lost by individual shareholders does not seem to be extraordinary, long-term negative effects of the charges are not expected to be glaring, analysts said.
This latest development in Spitzers and the SECs investigation is significant, because it spells the first time they two entities are walking past the fund companies themselves and into the financiers of the operations, Reuters reports.
CIBC has previously settled unrelated charges with regulators for $80 million regarding its dealings with Enron, which it apparently worked with to fraud investors.