"It's in the midst of a major major restructuring of every aspect of its company because it grew too fast and didn't build the infrastructure necessary to keep up with that growth," Bove said, in a phone interview Wednesday.
He argues the bank was able to hide those costs because of the mortgage refinancing boom.
However, "the government is on their back big time -- both with the violation of the Bank Secrecy Act and the anti-money laundering laws. So I think their earnings are going to be disappointing. I don't think they're ever going to conclude their merger with Hudson City (HCBK - Get Report) and I think their stock is substantially overpriced," Bove says.M&T struck a deal to acquire Hudson City in 2012 for $3.7 billion but the deal had been bedeviled by compliance issues. -- Written by Dan Freed in New York Follow @dan_freed