Economics

Feds Querying Banks Over Tax-Avoidance Trades: WSJ

Feds Querying Banks Over Tax-Avoidance Trades: WSJ

Financial regulators are heightening their focus on banks involved in complex international trades designed to skirt taxes, the Wall Street Journal reports. The Commodity Futures Trading Commission sent letters to five firms reportedly involved in the exotic transactions, which have already drawn scrutiny from the Federal Reserve and international authorities. Banks defend the so-called dividend-arbitrage trades,…