Boston, MA 09/12/2014 (wallstreetpr) – M&T Bank Corporation (NYSE:MTB) unit Wilmington Trust Co. has concurred paying $18.5 million to resolve U.S. regulatory charges over accusations that the bank did not report unpaid construction loans.
The Securities and Exchange Commission today claimed that Wilmington Trust failed to report the authorities about loans worth $669 million in the second half of 2009. The said loans were due over 90 days, according to the agency’s report. In addition, the bank devalued its loan-loss capability in the same period.
In this context, the Director of the enforcement division of the SEC, Andrew Ceresney, said that knowing when banking institutions fail to recover loans, is important information that investors must be aware of. He also highlighted that banks must be careful in adhering to relevant accounting procedures.
Wilmington Trust, which was taken-over by M&T Bank Corporation (NYSE:MTB) in 2011, is now seeking to resolve the case. As underlined by an article published by Reuters, the Commission said that the bank is willing to settle the matter even without commenting on the claims. The Delaware-based bank had offered itself for sale in the course of incurring losses caused by soured commercial real estate loans. Apart from this, it also had invested hugely in pools of securities preferred by trusts.
M&T Bank Corporation (NYSE:MTB), one of the largest shareholders of which is Warren Buffet headed Berkshire Hathaway Inc. (NYSE:BRK.A), said in a filing it had made in 2012, that it had obtained a notice of likely regulatory investigation by the SEC. Additionally, at that time, the bank had also informed that the Justice Department was conducting an investigation.
M&T Bank Corporation (NYSE:MTB)’s spokesman said that the company is unable to speak on issues that concern the former company. He said that it is essential to settle previous issues before the company can build on the acquired asset, both in Delaware, as well as in its wealth trust management unit.