SEC Whacks Wilmington Trust for $18.5M

     WASHINGTON (CN) – Wilmington Trust will pay $18.5 million to settle federal charges that it reported just 10 percent of its overdue loans during the financial crisis.
     The SEC filed the settled complaint Thursday, in Federal Court.
     Wilmington Trust was acquired by M&T Bank in May 2011. Wilmington juggled the books in 2010 and 2011, according to the SEC’s cease-and-desist order.
     The SEC claims that Wilmington declared just $38.7 million in matured loans 90 days or more past due in the third quarter of 2009, though the real number was $338.9 million; and declared $30.6 million past due in the fourth quarter, though the real number was $330.2 million.
     It also misreported the numbers in the next two quarters, the SEC said.
     It seeks damages and an order telling the bank not to do it again.
     
CORRECTION: The original headline for this article incorrectly stated the amount of Wilmington Trust’s settlement with the SEC. The correct amount is $18.5 million. Courthouse News regrets the error.

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