US: New York signs off on $3.7 billion bank merger

New York’s banking regulator on Friday said he had approved M&T Bank Corp’s acquisition of Hudson City Bancorp Inc, paving the way for the merger to be completed on Nov. 1.

M&T, based in Buffalo, New York, agreed to buy Paramus, New Jersey-based Hudson City for $3.7 billion in 2012, but the lenders were unable to close the deal because regulators were concerned about M&T’s anti-money laundering policies.

In approving the application on Friday, Anthony Albanese, acting superintendent of New York’s Department of Financial Services, said that M&T Bank had taken “substantial steps” to strengthen its risk management and anti-money laundering compliance programs.

The Federal Reserve on Sept. 30 said it had approved the acquisition. The Department of Justice had determined that the merger would not have a significantly adverse effect on competition, the Fed said, adding that the banking agencies had not objected to the deal.

Full content: Market Watch

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