Canadian Imperial Bank of Commerce conducted an internal investigation into alleged misbehaviour on its trading floor amid claims of sexual harassment and a toxic work environment, The Globe and Mail has learned.
Earlier this year, the bank hired an outside firm to question trading floor staff about a series of alleged incidents, according to three people familiar with the situation. Roughly 20 employees were interviewed, said a source involved in the process.
The investigation is linked to a wrongful-dismissal lawsuit filed in December by Diane Vivares, a former executive assistant to the head of equity markets. Ms. Vivares, who was terminated in October, is seeking at least $1.175-million in damages from CIBC World Markets and Kevin Carter, a former executive director who worked in the dealer's equity derivatives group.
Ms. Vivares is seeking damages from the bank for allegedly failing to protect her from a "sexually poisoned and toxic work environment" and from Mr. Carter for allegedly sexually assaulting her at a staff Christmas party in 2007. Ms. Vivares claims in court documents that she reported "incidents of sexual assault, harassment, bullying and discrimination" to several senior managers.
Both CIBC and Mr. Carter deny the allegations, which have not been proven in court. Story
Victor Dodig responds
CIBC chief executive officer Victor Dodig took steps Wednesday to reassure staff of his commitment to workplace safety.
"Let me be clear on this point," he wrote in a bank-wide memo. "No form of harassment, discrimination, bullying or any other kind of violence in the workplace is ever acceptable. Each of us has the right to be treated fairly, with decency and respect, and to feel safe and secure when we come to work. It's our most basic promise to our team."
"This isn't lip service," Mr. Dodig wrote, stressing that he is personally invested in efforts to fortify CIBC's internal culture.
"This is a very important topic to me personally as the evolution of our culture over the last year and a half is one of the things I'm most proud of," he wrote.
Still, Mr. Dodig acknowledged that there is more work ahead: "Like most organizations, we need to do more and we will do more. You have my word on this." Story
DAILY DEALS
The slowdown in U.S. venture capital funding seems to be stuck at the border – at least for now. The Canadian Venture Capital & Private Equity Association says the pace of investment, which hit a record in the first quarter of 2016, remains resilient, and fund closings are also helping buoy industry activity. Story
Caisse de dépôt et placement du Québec and the Bronfman family's private-equity firm, Claridge Inc., are partnering in a new real estate development effort in the Montreal region. Story
Essar Group, which paid $1.85-billion to buy Algoma Steel Inc. in 2007, has been ruled out as a potential buyer of the company it put into creditor protection last November, sources familiar with the steel company's restructuring said. Story
The Competition Bureau says it will not oppose the proposed $537-million sale of Montreal-based St-Hubert restaurants to Swiss Chalet owner Cara Operations Ltd. Story
Onex Corp. has revived an auction for Carestream Health that could value it at more than $3-billion, including debt, and is exploring a break up of the U.S. medical imaging company, people familiar with the matter said. Story
Ben Moss Jewellers was granted court protection from its creditors on Wednesday as it prepares to close 11 of its 66 stores. Story
Tesla Motors Inc. said it would offer $2-billion (U.S.) of stock to help finance the accelerated launch of its new Model 3 electric sedan. Story
Microsoft Corp. said it is selling its entry-level feature phone assets to FIH Mobile Ltd. and HMD Global Oy for $350-million. Story
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