M&T and Hudson City Expect More Time Needed for Merger

By Eric Volkman – Apr 12, 2013 at 9:12PM

NYSE: MTB

M & T Bank

Market Cap

$25B

Today's Change

(-0.38%) -$0.56

Current Price

$147.40

Price as of April 25, 2024, 9:33 a.m. ET

Fed concerns about M&T's compliance with the Bank Secrecy Act means a longer wait for the deal to be finalized.

M&T Bank (MTB -0.38%) will take a little longer to absorb fellow lender Hudson City Bancorp (NASDAQ: HCBK). The companies said in a joint press release that they believe more time will be needed to address regulatory issues in order to effect the planned acquisition, first announced in Aug. 2012.

This is because M&T has discovered that the Federal Reserve has "identified certain regulatory concerns with M&T's procedures, systems and processes relating to M&T's Bank Secrecy Act and anti-money-laundering compliance program." According to the press release, M&T has retained an outside consulting firm to assist it in dealing with those concerns.

Last summer, the two firms signed an agreement under which Hudson City would be acquired by M&T for a mix of cash and stock amounting to roughly $3.7 billion.

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