BMO Agrees to Pay US$40 Million to Settle SEC Charges on Supervision Failure

BMO Agrees to Pay US$40 Million to Settle SEC Charges on Supervision Failure
The Bank of Montreal building is pictured in Ottawa on June 3, 2024. The Canadian Press/Sean Kilpatrick
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The U.S. Securities and Exchange Commission says BMO has agreed to pay more than US$40 million to settle charges related to the bank’s alleged supervision failure in bond selling.

The regulator says the apparent issue allowed employees in the BMO Capital Markets division to allegedly sell mortgage-backed bonds using misleading metrics.