Enron Case: Canadian Imperial Bank of Commerce to pay $2.4 billion

Enron Case: Canadian Imperial Bank of Commerce to pay $2.4 billion

Enron Scandal has claimed another victim and this time it is the Canadian Imperial Bank of Commerce. They have finally agreed to pay around $2.4 billion to resolve investors’ claims it helped hide losses at Enron Corporation. This happens to be THE biggest individual settlement since the collapse of the energy giant and comes after some big names have settled down paying big amounts.

Canadian Imperial Bank of Commerce is the fifth largest financial institution in Canada and is the operators of the securities firm CIBC World Markets. The amount is going to help in compensating the investors who lost tens of billions of dollars when Enron failed in 2001. Other financial institutions to have settled and paid the price are Citigroup Inc. and JPMorgan Chase & Co. and others.

The total amount been recovered from these banks have reached a massive sum of around USD 7 Billion and this might be paying off the 50,000 Enron stock and bond holders led by the University of California’s board of regents who initially filed a case in the courts. The claim was that a large number of global banks and brokerages helped the company continue to operate and raise money even as the company was imploding.

Much of that has now been proven to be correct and the involved companies are paying up one by one. Looks like this is one of the rare cases where the sufferer might win back some of their lost investments in a company which cheated them of their hard earned money.