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EX-BMO EMPLOYEE SETTLES WITH REGULATORS

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TORONTO – The U.S. Commodity Futures Trading Commission announced that it has reached a settlement deal with Robert Moore, a former executive managing director in BMO’s commodity derivatives business, relating to the mis-marking and mis-valuing of the bank’s natural gas options book by a trader he supervised.

A US federal court order requires Moore to pay a $150,000 fine within 10 days, and bars him permanently from “engaging in any conduct in violation of the Commodity Exchange Act.” The settlement comes after the CFTC charged former BMO trader David Lee with mis-marking his natural gas options positions for a number of years. Moore was Lee’s direct supervisor at BMO, and as such, was charged with controlling-person liability. Lee pleaded guilty and settled in November 2009. Regulators said Moore failed to adequately supervise Lee, and was in a position where he could have discovered the problem sooner had he asked more questions. Moore neither admitted nor denied the allegations against him in his settlement.