CIBC Settles Enron Case With $2.4bn
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Canadian Imperial Bank of Commerce (CIBC) has spent $2.4bn to settle claims that it helped losses at the Enron Corporation. The total paid so far by banks involved in the action reaches $7.1bn. Citigroup and J. P. Morgan Chase have paid $2bn and $2.2bn respetively. Already it ranks as the largest class-action securities settlemet. Other defendants include Merrill Lynch, Credit Suisse First Boston and Deutsche Bank The banks, it is alleged, helpe Enron with its various accounting deceptions leading to bankruptcy. The collaps of Enron and fellow miscreant, WorldCom, led directly to the passing of the Sarbanes-Oxley Act of 2002. Enron's scam had involved, false investments and complex partnerships. Consequently billions of dollars appeared to be wiped off the balance sheet The Enron class-action has been running concurrently with another one, involving WorldCom. In that case $6.2bn was paid out by the banks.
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