Dallas, Texas 12/11/2013 (FINANCIALSTRENDS) – Fifth Third Bancorp (NASDAQ:FITB) and few of its executives who were under the scanner by the Securities and Exchange Commission have decided to surrender arms and settle with the authorities last week. The issue revolved around the alleged accounting malpractices related to faulty mortgage bonds issuance in the run up to the 2007 financial crisis. Its former chief financial officer Daniel Poston also was under scrutiny and has signed off on this deal.
As part of the deal, Fifth Third Bancorp (NASDAQ:FITB) has agreed to payout close to $6.5 million as a onetime payout to settle all chares faced by the company in relation to faulty accounting practices in the run up to 2008. As part of investigations which turned out the facts related to the case, it was found that the accounting sleight of hand allowed the company to avoid reporting 132 percent increase in quarterly losses in one of the quarters in the run up to 2007 financial crisis. In addition Poston has lined up to pay $100,000 as penalty to answer for his alleged contribution to the wrong doing. He has also been asked to stay away from offering his services as a accountant in any public company.
Commenting about the settlement, the company spokesperson is quoted to have said,“We’re pleased to have now finalized that settlement and to put this matter behind us.”
Fifth Third Bancorp (NASDAQ:FITB) has decided to change the name of its fully owned subsidiary Fifth Third Asset Management, Inc. to ClearArc Capital, Inc. Commenting about the change in name, the subsidiary’s president Stephen Mullins has been quoted as saying, “Our transition to ClearArc Capital better reflects the investment services we provide to our clients. Beyond traditional asset management, we listen closely to our clients to provide sophisticated, transparent investment strategies to help meet the needs of institutional investors.”