U.S. regulatory anti-money laundering concerns may cause delay in the proposed purchase of Hudson City Bancorp Inc by M&T Bank Corp.
The banks had expected to be able to close the deal in the second quarter of 2013. However, with the concerns being raised by the U.S. Federal Reserve, they have extended the date after which either could abandon the proposed acquisition from August 27 to January 31.
Sources said that New York-based M&T has hired an outside consultant to help address the anti-money laundering concerns of the U.S. Federal Reserve.
M&T, which has Warren Buffett's Berkshire Hathaway Inc as a major shareholder, plans to expand in the U.S. East Coast by buying Hudson City Bancorp, which has branches in New Jersey and other parts of the New York City area.
The deal, which would create a combined network of about 870 branches, is expected to boost M&T's earnings.
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