Glencore under CFTC probe
Glencore said the U.S. Commodity Futures Trading Commission is investigating whether the company and its units have violated some provisions of the Commodity Exchange Act and/or CFTC Regulations.
US regulators are investigating whether the commodity trader broke some rules through corrupt practices, shares plunge the most in nearly four months.
Stocks impacted: Glencore (GLEN)
The company was subpoenaed last year by the US Department of Justice for documents relating to dealings in Nigeria, the Democratic Republic of Congo and Venezuela since 2007. As a reminder, in April 2018, two Glencore subsidiaries were hit with a $2 million fine by the CFTC for multiple violations between January 2013 and November 2015. In its annual report, Glencore disclosed that the company incurred $24 million in legal costs last year related to the DOJ investigation. After the news, the company’s shares declined 4% and keep bleeding on Friday, shedding over 3%.
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