Fifth Third Bancorp (NASDAQ:FITB) Settles With SEC


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.

Deal Details

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.”

Related News

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.”

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.