CIBC chief executive John Hunkin has apologized for a glitch that sent confidential faxes from the bank to a U.S. junkyard, adding that CIBC customers will be “fully reimbursed” for losses from the mistake.

“I want to personally apologize and convey to you my concern regarding a failure in safeguarding the confidentiality of customer information,” Hunkin said in a letter to customers published today in newspapers.

The letter said CIBC takes the breach in customer privacy as a serious matter. The issue first came to the bank’s attention in early 2002

“We regard any breach of privacy as unacceptable and will stand behind any loss that occurs because of this incident,” Hunkin said in the letter.”

The letter said the CIBC fax number involved with the misdirected faxes has been disconnected.

The letter also said CIBC has called all the customers known to have been affected.

“There has been no compromise of these customers’ funds,” the letter said. “If any loss occurs as a result of this incident, customers will be fully reimbursed.”