The Securities and Exchange Commission has notified Wilmington Trust, an M&T Bank Corp. subsidiary, of possible enforcement action. The investigation centers on financial reporting and securities filings by the Delaware-based firm before M&T bought it in 2011.
Buffalo-based M&T said the SEC on Aug. 5 sent Wilmington Trust a “Wells notice,” which provides notification of potential enforcement action and is named for a former SEC committee chairman. Recipients are given a chance to explain why the action should not be brought; Wilmington Trust sent its response Sept. 20.
“The issues in question relate exclusively to Wilmington Trust Corp. and occurred prior to the merger with M&T Bank Corp.,” Chet Bridger, an M&T spokesman, said in a follow-up statement about the regulatory filing. “We do not currently believe that any liability arising from these matters would have a material impact upon the company’s consolidated financial position.”
Pre-merger activities of Wilmington Trust have been the subject of legal action. The bank was acquired by M&T, due in part to a number of bad real estate loans, often in Central and southern Delaware.
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