Fed approves M&T's purchase of Hudson City; HCBK +5.4%

• The Federal Reserve has signed off on M&T Bank's (MTB +0.8%) acquisition of Hudson City Bancorp (NASDAQ:HCBK). The latter's shares have jumped on the news.
• The deal had been stalled for over 3 years as regulators probed Hudson City's money laundering controls. The Fed previously told MTB and HCBK it would make a decision by the end of September.