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Merrill Lynch Hid Cum-Ex Profit, Ex-Trader Testifies (2)

Oct. 2, 2019, 1:20 PMUpdated: Oct. 2, 2019, 6:37 PM

Bank of America Corp.’s Merrill Lynch unit was among lenders getting a share of the profit of clients’ so-called Cum-Ex trades, and tried to hide payments linked to the controversial tax-driven practice by masking them via unrelated future transactions, a former trader said in a German court.

Like other investment banks acting as prime brokers for Cum-Ex investors, Merrill Lynch charged the “industry standard” of 4% of the money generated through the double tax refunds, the ex-trader said Oct. 2. The man, referred to as Darren T. because he can’t be identified under local law, appeared as a witness at ...