Federal bank regulator probes CIBC fax fiasco

You remember the CIBC fax fiasco? That was the one where one of Canada’s biggest banks sent hundreds of faxes containing confidential customer data to a West Virginia scrapyard operator over a three-year period even though the West Virginian begged the bank to stop.

Today, the Globe’s Sinclair Stewart notes that the Office of the Superintendent of Financial Institutions (OSFI) is investigating the incident. OSFI is the federal regulator in charge of banks. Sinclair reports that OSFI is mostly concerned with the bank’s reputational risk. He also reports that the federal Ministry of Finance will wait for OSFI’s report and a separate report from Canada’s Privacy Commissioner about the issue.

In the meantime, the lawsuit between the West Virginian, Wade Peer, and the bank continues. Mr. Peer finally sued the bank in a court in Maryland. He claims the deluge of faxes forced him to shut down a new business venture he had going and he wants the bank to pay. But the bank, rather than negotiate a settlement with Mr. Peer, seems intent on litigating this as far as it can.

Last week, Mr. Peer’s lawyer was in Toronto and deposed several bank officials. Sources say that the Privacy Commissioner’s investigation, which was nearing completion, has now been extended to consider some of the information that came to light in that deposition.

 

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