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M&T Bank's Wilmington Trust Nears End of 8-Year-Long Lawsuit

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Per an article by Bizjournals, M&T Bank Corporation’s (MTB - Free Report) wealth advisory division — Wilmington Trust Corporation — is nearing the settlement of a lawsuit that has been dragged for almost eight years. The proposed settlement amount of $210 million was approved last month and the bank now looks forward to a final court hearing sometime in the last quarter of 2018.

Upon courts approval, the bank seeks to pay $200 million of the settlement amount through its current litigation reserves while the remaining will be paid by its former auditor, KPMG.

The lawsuit is related to Wilmington Trust wrongdoing before being acquired by M&T Bank. Per the article, a complaint against the trust was initially filed by its shareholders on Nov 18, 2010, accusing it of making schemes to conceal millions of dollars in toxic commercial real-estate loans during the financial crisis. Wilmington Trust had been alleged of avoiding mandatory disclosures to the U.S. Securities and Exchange Commission and the Federal Reserve Bank by “waiving” matured loans from the reporting requirements for past due loans.

Overall, M&T Bank does not have a history much legal troubles. Moreover, it continues to undertake initiatives aimed at improving its top line. In June 2018, the bank introduced several services such as online lending platform, a new credit cards program and a business cash management platform with a view to attract small businesses.

The launch of these services is likely to be of great use for small and mid-sized companies and also boost M&T Bank’s performance. Also, the company, with its solid business model and strategic acquisitions, remains well poised for growth.

Shares of M&T Bank have gained 11.3% over the past year, underperforming the industry’s growth of 15.9%.

M&T Bank currently carries a Zacks Rank #2 (Buy).

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Comerica Incorporated’s (CMA - Free Report) current-year earnings estimates have been revised 5.1% upward over the last 30 days. In the past year, the company’s share price has surged 37.5%. It currently flaunts a Zacks Rank of 1.

Northern Trust Corporation (NTRS - Free Report) has witnessed 2.8% upward estimate revision in current-year earnings over the last 30 days. Additionally, the stock has jumped 24.4% in 12 months’ time. It currently carries a Zacks Rank #2.

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