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October 10, 2017

Statement of Acting U.S. Attorney David C. Weiss on the Wilmington Trust Corporation Settlement

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News Release:


U.S. Department of Justice
U.S. Attorney's Office
District of Delaware

Tuesday, October 10, 2017

Statement of Acting United States Attorney David C. Weiss on the Wilmington Trust Corporation Settlement

"Wilmington Trust Company (WT) has been a fixture in this community for more than 100 years. This is why the bank's decline and the fire sale acquisition by M&T Bank was such a significant development in this community; and why this office has invested substantial time, energy and resources in the investigation and prosecution of this case.

The United States Attorney's Office fort the District of Delaware has reached a resolution with WT. The key terms, from our perspective, are as follows:

  • WT admits that it agreed to submit Monthly Regulatory Reports to the Federal Reserve between October 2009 and July;
    • Those reports included past due loan information.
    • The past due loan numbers submitted to the Federal Reserve did not include past due loans that WT chose to "waive."

We say that those monthly reports were false. These facts and those set forth in the Civil Forfeiture Complaint filed earlier today, provide a basis to forfeit the proceeds of this unlawful activity.

  • As a result, WT and the USAO have agreed to a total settlement amount of $60,000,000, which credits WT with its prior payment to the SEC in the amount of $16,000,000, and requires an additional forfeiture payment of $44,000,000.
  • Further, WT agrees to cooperate with the USAO moving forward. In return, the USAO has agreed to dismiss all criminal charges pending against WT, and the parties have agreed to exchange mutual releases.

To function effectively, our financial markets require accurate disclosures—and regulators need to receive accurate information.

That didn't happen here.

We believe today's resolution accomplished three important objectives. First, we secured a substantial payment for victims who sustained losses as a result of what transpired. Second, WT accepted responsibility for its actions. And third, if possible, we wanted to avoid the collateral consequences of a criminal conviction for the bank, which could have resulted in the loss of jobs and revenue for our community."