M&T and Hudson City decline in tandem after M&T miss

|By:, SA News Editor

The big losers in a largely green regional bank sector (KRE +0.4%) today are M&T Bank (MTB -3.3%) and Hudson City Bancorp (HCBK -3.2%). M&T's excuse is a big earnings miss as the bank was unable to cut expenses the way some of its competitors had. At issue is the cost to come into compliance with the Bank Secrecy Act and anti-money laundering programs in order to win the favor of regulators for the Hudson City takeover.

It's possible a negative development was mentioned in the earnings call, or - maybe more likely - since the deal is set to be an all-stock one, the decline in M&T is being felt by Hudson City.