BofA commodity arm fined by DOJ for trading practices

FILE PHOTO: A Bank Of America logo is pictured in the Manhattan borough of New York August 21, 2014. REUTERS/Carlo Allegri

(Reuters) – Bank of America Corp’s commodity arm Merrill Lynch Commodities Inc has agreed to pay $25 million to resolve a probe into its trading practices, the U.S. Department of Justice said on Tuesday.

Between 2008 and 2014, traders employed by Merrill Lynch Commodities deceived other traders by injecting misleading information into the precious metals futures market, the DOJ said in a statement.

During the period, the traders placed thousands of orders for precious metals futures contracts only to cancel just before execution, thereby creating a false impression of increased supply or demand, according to the DOJ.

In a separate settlement with the Commodity Futures Trading Commission on Tuesday, Merrill Lynch Commodities also agreed to pay $11.5 million in fines.

Reporting by Bharath Manjesh in Bengaluru; Editing by Shounak Dasgupta

Filed in: Top News Tags: 

You might like:

Iowa pension ends $386 million money management contract with Kenneth Fisher Iowa pension ends $386 million money management contract with Kenneth Fisher
SEI Investments reviewing relationship with money manager Kenneth Fisher SEI Investments reviewing relationship with money manager Kenneth Fisher
AT&T, Elliott in talks after activist campaign launched: sources AT&T, Elliott in talks after activist campaign launched: sources
Goldman wants traders to be more like dealmakers and coders Goldman wants traders to be more like dealmakers and coders
U.S. stock funds see first weekly inflow in a month U.S. stock funds see first weekly inflow in a month
Your Money: U.S. teachers take hands-on approach to financial literacy Your Money: U.S. teachers take hands-on approach to financial literacy
Members of Los Angeles pension board ready to drop money manager Ken Fisher Members of Los Angeles pension board ready to drop money manager Ken Fisher
U.S. boutique banks woo French bankers in Paris advisory push: sources U.S. boutique banks woo French bankers in Paris advisory push: sources
© 2019 Stock Investors News. All rights reserved. XHTML / CSS Valid.