US regulators claim that RBC made illegal futures trades between 2007 and 2010. They allege the Royal Bank engaged in 'wash trades' to avoid tax regulations, but also systematically mislead the trade commissions. In response, Royal Bank called their claims "absurd" and notes that the regulating bodies were aware of the alleged scheme as early as 2005, oversaw all of their trades, and were contacted by RBC for guidance prior to the trades.
Given the growing discontent with Wall Street bankers, perhaps RBC is going to be the scapegoat for the problems in the US banking industry. This way these commissions can give the appearance of doing something.
Edited by cybercoma, 04 April 2012 - 04:56 AM.
