The Deal: Regulatory Issues Still Cloud Hudson Closing Date
NEW YORK (The Deal) -- M&T Bank Corp.
In April, M&T said the Federal Reserve Board identified concerns with M&T's procedures and processes relating to compliance with the Bank Secrecy Act and anti-money-laundering compliance program.
In June, M&T entered a consent order with the Fed that outlined obligations, including submitting plans for revised programs regarding compliance with various aspects of the BSA/AML regulations. That agreement with the Fed requires M&T submit the revised program outlines by August 16.
On its earnings call Wednesday, M&T said it is working diligently to address these matters in a timely manner and is focused on submitting the plans, which then require Fed approval. Afterward, execution is a factor in complying with the agreement and M&T has to make sure everything is in place to execute, so it makes no sense to speculate on the time line, M&T chief financial officer René Jones said.
"Once we get through the work we have to do on BSA/AML and we get through
"Obviously all of that has to be revisited when we get back at it," he said.
The termination date for the merger has already been extended from Aug. 27 to Jan. 31, 2014.
Shareholders of both companies approved the merger in April shortly after the Federal Reserve Board inquiry was initiated.
M&T is acquiring Hudson City for 0.08403 of an M&T share or the equivalent in cash, subject to shareholder election and a 10-day pricing period to determine the cash value. The compensation will be prorated to execute the deal using 60% stock and 40% cash.