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Canadian Imperial Bank of Commerce
The Canadian Imperial Bank of Commerce ( ), better known to most customers as CIBC, is one of Canada's major banks. CIBC is classified as a Domestic Chartered Bank (Schedule I). With its headquarters in Toronto, Ontario, it also operates in the United States, the Caribbean, Asia and the United Kingdom. CIBC provides a full range of products and services to more than 11 million clients. It is currently Canada's fifth largest chartered bank and has a worldwide workforce of 40,457 employees. CIBC ranks number 159 on the Forbes Global 2000 list.[1] Current operations
A CIBC branch in Toronto. Company divisionsCIBC has two strategic business units: The functional groups that provide support across CIBC are:
Operational facts
MembershipsCIBC is a member of the Canadian Bankers Association (CBA) and registered member with the Canada Deposit Insurance Corporation (CDIC), a federal agency insuring deposits at all of Canada's chartered banks. It is also a member of:
Recent Events
La Tour CIBC from the east in downtown Montreal.
HistoryIn 1867 the Canadian Bank of Commerce opened in Toronto with a charter in 1866 (purchased from the defunct Bank of Canada, which folded in 1858). Imperial Bank of Canada opened a few years later in 1875, also in Toronto. In 1961 the two banks merged to form the Canadian Imperial Bank of Commerce and in 1962, opened a major new banking centre in Montreal, Quebec with the construction of the CIBC building. CIBC was the first Canadian bank to introduce bank machines, with the Automated Cash Dispenser in 1969. In 1988 CIBC moved into the investment market by purchasing Wood Gundy Inc. In 1997 it moved to do the same in the United States by purchasing Oppenheimer & Co. Besides its Canadian operations, CIBC has operations globally. CIBC National Bank was established in the U.S. in 1999, but opened a foreign exchange office in New York in 1875 (Canadian Bank of Commerce), London in 1901 and in Asia (Hong Kong) in 1970. Along with Loblaws, CIBC helps operate President's Choice Financial, started in 1996. CIBC is currently one of Canada's chartered banks, also referred to as the Big Six banks. CIBC and the Great WarsDuring World War I and II, staff from the Canadian Bank of Commerce enlisted in the war effort: Staff enlistment for:
A War Memorial at Commerce Court in Toronto, Ontario commemorates their sacrifice. MergersCanadian Bank of CommerceHalifax Banking Company - 1903 Established in 1825 by Enos Collins with Hon. Henry H Cogswell as President from 1825-1834:
Gore Bank Formed in 1836 and merged with the Commerce in 1870:
Eastern Townships Bank Formed in 1859 and merged with the Commerce in 1912:
Bank of British Columbia Established with a Royal Charter in 1862 and merged with the Commerce in 1901:
Merchants Bank of Prince Edward Island Formed 1856 and merged with the Commerce in 1906:
Bank of Hamilton Bank of Hamilton merged with the Commerce in 1924. The Standard Bank of Canada (changed to St Lawrence Bank 1872-1876) in 1876. Merged with the Commerce in 1928. Imperial Bank of Canada
CIBC 1961
CIBC-TD BankThere was an attempt by CIBC to merge with the Toronto-Dominion Bank in the late 1990s. However, the Government of Canada at the lead of then Finance Minister Paul Martin blocked the merger from occurring. Joint Ventures
Sell Off/Restructuring/Outsourcing
Scandals2003 Enron ScandalOn December 22, 2003, the Security and Exchange Commission (SEC) fined CIBC US$ 80 million for its role in the manipulation of Enron financial statements. This consists of $37.5 million to repay ill-gotten gains, a $37.5 million penalty and $5 million in interest. The money is intended to be returned to Enron fraud victims pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002.[7] The SEC also sued three of CIBC's executives. CIBC Executive Vice President Daniel Ferguson and former CIBC Executive Director Mark Wolf agreed to settle for US$ 563,000 and US$ 60,000, respectively. Ian Schottlaender, former managing director in CIBC's corporate leveraged finance group in New York initially contested the charges[8] but on July 12, 2004 he agreed to pay US$ 528,750 as well as be barred from serving as an officer or director of a publicly traded company for a period of five years.[9] Under these agreements the individuals neither admit nor deny wrongdoing. The SEC complaint charges that "CIBC and the three executives with having helped Enron to mislead its investors through a series of complex structured finance transactions over a period of several years preceding Enron's bankruptcy." The agreement reached between the SEC and CIBC permanently enjoins CIBC from violating the antifraud, books and records, and internal control provisions of the federal securities laws.[10][11] On August 2, 2005 CIBC paid US$ 2.4 billion to settle a class action lawsuit brought by a group of pension funds and investment managers, including the University of California, which claims that "systematic fraud by Enron and its officers led to the loss of billions and the collapse of the company."[12] 2003 Market Timing ScandalOn July 25, 2005 CIBC confirmed it would pay US$ 125 million to settle an investigation into it's role in the 2003 Mutual-fund scandal. Linda Chatman Thomsen, director of the SEC's division of enforcement, said, "by knowingly financing customers' late trading and market timing, as well as providing financing in amounts far greater than the law allows, CIHI and World Markets boosted their customers' trading profits at the expense of long-term mutual fund shareholders."[13] Under the settlement, CIBC neither admits nor denies the allegations. 2004 CIBC Visa ScandalOn August 27, 2004 CIBC confirmed that it would settle a class-action lawsuit on behalf of CIBC Visa cardholders. The plaintiffs, represented by Paul Pape and Harvey Strosberg of the Toronto law firm Pape Barristers, alleged that the conversion of foreign-currency transactions resulted in an undisclosed or inadequately disclosed mark-up.[14] After having been approved by an Ontario Superior Court judge, CIBC announced on October 15, 2004 that the settlement will result in the bank paying $13.85 million to its cardholders, $1 million to the United Way, $1.65 million to the Class Action Fund of the Law Society of Upper Canada (Ontario), and $3 million in legal fees. [15] The bank also announced that it has not admitted any liability and is settling to avoid further litigation with its cardholders. 2004 Overcharging BorrowersOn May 20, 2004 CIBC announced that it would refund $24 million to some of its customers as a result of erroneous overdraft and mortgage charges which were discovered in the course of an internal review. "This is being done as part of CIBC's effort to correct its error and to ensure that it distributes to customers all of the money it received in error," the bank said.[16] In another similar incident, CIBC announced on April 27, 2006 that it's refunding an additional $27 million to about 200,000 clients who were overcharged for certain overdraft fees and other borrowing transactions, some of which date back to 1993.[17] In cases where clients were undercharged, the bank decided not to seek reimbursement.[18] 2005 Misdirected FaxesOn April 18, 2005 the Privacy Commissioner of Canada expressed disappointment in the way CIBC dealt with incidents involving the bank misdirecting faxes containing customers' personal information.[19] One involved misdirecting faxes to a scrap yard operator in West Virginia from 2001 to 2004. The misdirected faxes contained the social security numbers, home addresses, phone numbers, and detailed bank account data of several hundred bank customers.[20] The second incident involved a Dorval businessman and allegedly took place from 2000 to 2004.[21] In both cases, the commissioner noted that the bank did not inform the affected clients, whose personal information was compromised, until the incidents became public and an investigation was underway.[22] A few days after the story broke on CTV News and The Globe and Mail, CIBC announced that it had banned its employees from using fax machines to transmit any documents containing confidential customer information.[23] 2007 Personal Information BreachOn January 18, 2007 CIBC Asset Management announced that the personal information of about 470,000 current and former clients of Talvest Mutual Funds, a CIBC subsidiary, has been compromised. The information may have included client names, addresses, signatures, dates of birth, bank account numbers, beneficiary information and/or Social Insurance Numbers.[24] The incident emanated from the disappearance of a hard drive containing information on "the process used to open and administer" customer accounts as it was traveling between the bank's Montreal and Toronto offices.[25] The Privacy Commissioner of Canada, "deeply troubled" by the incident, immediately launched yet another investigation.[26] 2007 Unpaid OvertimeIn June 2007, CIBC was named in a $600 million class-action lawsuit regarding the lack of overtime pay to its customer service staff.[27] The lawsuit was launched by Dara Fresco, a head teller at the bank, who is being represented by the law firms Roy Elliot Kim O'Connor LLP and Sack Goldblatt Mitchell LLP.[28] A class-action case management judge is being assigned to the case and the class-action certification is being assessed - a process that could take up to one year. [29] 2008 Subprime Loan LossesOn December 19, 2007, CIBC announced that it forecast a first quarter write-down of 2 billion US dollars.[30] The expected loss was due to exposure to the U.S. subprime mortgage crisis. CIBC stands alone among Canadian banks in suffering significant losses due to the subprime crisis. In January, 2008, CIBC fired Brian Shaw, the CEO of CIBC World Markets and Ken Kilgour, the Chief Risk Officer. Tom Woods was moved from CFO to the Chief Risk Officer position. Richard Nesbitt joined as CEO of CIBC World Markets and David Williamson joined as CFO. Many critics believe that CIBC's CEO, Gerald McCaughey, should have been turfed and point to the firings at Citibank and other U.S. banks as examples. [31] Corporate governanceBank Executives
Current members of the board of directors of the company are:
Past Presidents/CEO/ChairmanCanadian Bank of Commerce Presidents
Vice-Presidents
Imperial Bank of Canada Presidents
Chairmen
Canadian Imperial Bank of Commerce Presidents
Chairs
CEOs
Who's WhoA list of important people in CIBC's history:
UnionizationCurrently only select branches are unionized. The Sudbury branch staff and CIBC VISA department are part of the powerful United Steelworkers union. Significant buildings occupied by CIBC
References
External links
de:Canadian Imperial Bank of Commerce fr:Banque Canadienne Impériale de Commerce ja:CIBC fi:Canadian Imperial Bank of Commerce Source: Wikipedia | The above article is available under the GNU FDL. | Edit this article
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