A former trader at Deutsche Bank, one of eight people charged with deceptive trading practices earlier this year, pleaded not guilty Tuesday in federal court in Chicago.
Bloomberg News reports that Cedric Chanu, 40, a French citizen charged with conspiracy and wire fraud, was accused of manipulating precious metal futures on the Chicago Mercantile Exchange between 2009 and 2011 by spoofing the markets. Spoofing is an illegal trading practice in which fraudulent orders to buy and sell contracts are communicated to other traders to misrepresent supply and demand.
In the meantime, Bloomberg also reports that Wells Fargo suspended two employees in its community lending and investment unit amid a U.S. inquiry into the bank’s purchase of low-income housing tax credits, according to people familiar with the matter.
The Justice Department is looking into whether Wells Fargo and other banks colluded with developers to lower bids for low-income housing tax credits. The credits are part of a program created in 1986 that encourages affordable housing developments. The greater the spread between the price of the tax credit and its face value, the higher the return to the investor - in this case, the banks.
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