The illegal practice of "wash sales"

The practice of “wash sales,” or the illegal buying and selling of securities where no real change of ownership takes place, is a common practice and an “open secret” in the local financial system, according to industry insiders.Speaking to the Inquirer, banking and financial industry officials said that the practice is known to regulators who frown on the activity, but generally look the other way when the amounts are “not big enough to be noticed.”

“A lot of banks do this,” said a treasury official from a universal bank who requested anonymity because of the sensitive nature of the issue. “Everyone knows it’s illegal, but no one seems to mind. The problem with DBP was that the volume was huge.” (READ MORE: ‘Wash sales’ said to be common practice. By: Daxim L. Lucas - Reporter / @daxinqPhilippine Daily Inquirer / 05:33 AM June 03, 2015.