Wilmington Trust, a Delaware-based bank holding company owned by M&T Bank Corporation, agreed to pay $18.5 million to settle with the Securities and Exchange Commission, which charged the company with accounting and disclosure fraud for failing to properly report loans that were not being paid off after the financial crisis, the SEC announced Thursday.
The SEC found that while the real estate market was falling 2009 and 2010, Wilmington Trust’s construction loans were starting to mature without being repaid or the projects finishing. But the company did not renew, extend, or take other action for 90 days or more on a material amount of its matured loans, the SEC said. Instead of revealing the amount of these growing loans, which is mandated by accounting guidance rules, the company allegedly left these loans out of its public financial reporting.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
