FBI, SEC probe Wilmington Trust

[cyberpj]

Investigations allegedly involve fraud related to real estate loans

Once-venerable Wilmington Trust, a more-than-century-old banking institution taken down by bad real estate loans, is now the subject of an FBI criminal probe, and a federal grand jury has been impaneled to hear evidence, people close to the investigation say.

The U.S. Securities and Exchange Commission in New York also is pushing forward with its own investigation.

Wilmington Trust was swallowed up earlier this year by M&T Bank Corp. of Buffalo, N.Y., at a fire-sale price after an 11th-hour takeover deal was announced in November 2010.

The Delaware bank company's third-quarter financial information was so alarming that its businesses faced the possibility of "significant regulatory actions," the company said in its proxy statement. The announced sale price per share was about half the share price on the previous trading day. The sale resulted in shareholders' losing millions of dollars, including many small Delaware investors who had held on to thousands of shares of Wilmington Trust stock.

http://www.delawareonline.com/article/20111214/BUSINESS05/112140320/FBI-SEC-probe-Wilmington-Trust?

[treestar]

1. Giving loans to friends

That is so Delaware. All about who you know and never about merit or the rule of law.

And in small states, one would think it would be the opposite as it would be easier to watch what people are doing.

[jberryhill]

2. That's a shame

My parents did all their banking with WT for over 50 years.

I started out at WSFS when I was younger and they paid a percentage on debit card purchases, and have since used a couple of others.

What local banks are preferable these days, anyway?

[cyberpj]

3. I was a Wilm Trust girl starting with my first job with DuPont in 1970.

That was because Wilm Trust was the company's bank and there was an office right in my building at the time. Around 1978 I was still with DuPont but started working at "The Station" (The Experimental Station, a campus-like R&D site at the time) where there was already a credit union called DEXSTA (DEXSTA = Dupont EXperimental STAtion). I haven't looked back since.

I don't think anyone can beat credit unions but I suppose there are some of those that aren't as good as mine. Still, I was happy to see requirements lightened up when they opened doors to the whole community.

MUCH better credit card rates, no chage checking, online banking and bill paying, and automatic xfers from savings accounts to cover any overdrafts. 33 years and counting for me at DEXSTA.

[jberryhill]

4. Interesting

I don't think they had one out at Louviers, and the closest branch was where the 141 ramp to Kwd hwy west is now. Later, one went in next to the Howard Johnson's.