BMO Capital markets settles with SEC over bond desk supervision

© Reuters. FILE PHOTO: The logo of the Bank of Montreal (BMO) is seen on their flagship location on Bay Street in Toronto, Ontario, Canada March 16, 2017. Picture taken March 16, 2017.   REUTERS/Chris Helgren/File Photo

(Reuters) – BMO Capital Markets agreed to pay more than $40 million to settle U.S. Securities and Exchange Commission charges it failed to properly supervise employees who sold mortgage-backed bonds, the regulator said on Monday.

The payment includes disgorgement, prejudgment interest and a civil penalty, the SEC said. BMO did not admit or deny wrongdoing in agreeing to settle.

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