Hudson City Bancorp (HCBK +1.7%) shrugs off a downgrade to Hold at Sandler O'Neill as suitor M&T Bank (MTB +1.1%) rises following yesterday's earnings (the acquisition is an all stock deal). Speaking to American Banker, M&T CFO Rene Jones says the bank remains comfortable with the purchase despite higher mortgage rates which could crimp Hudson City's profits. M&T, he says, is committed to reforming the anti-money laundering policies which have held up the merger's approval.