NEW YORK ( The Deal) -- M&T Bank Corp. (MTB - Get Report) said Wednesday that the timing of its $5.2 billion merger with Hudson City Bancorp Inc. (HCBK - Get Report) remains uncertain because of its outstanding regulatory issues, but that the buyer remains comfortable with the economics of the deal.
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
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