HARTFORD, Conn. -- Shawmut National Corp. has confirmed that its Shawmut Bank Connecticut subsidiary was named in a federal lawsuit filed in New York by purchasers of bonds issued by units of Towers Financial Corp.
Shawmut said the suit, which also names Duff & Phelps Credit Rating Co., seeks damages in an undetermined amount equal to the difference between the current value of the bonds and their face amount of about $200 million plus interest as well as punitive damages.
Beth Johnson, a self-described math geek, is driving the bank's ESG strategy and training its employees to keep pace with industry trends.
The Cleveland-based bank is projecting steady growth in net interest income even as credit losses remain manageable. But Chairman and CEO Chris Gorman also said that he thinks a recession is likely.
The first-quarter increase involved commercial real estate loans, including some problematic multifamily loans and an office credit, but none of the criticized loans were to consumers, officials at the Dallas company say. Further CRE deterioration is anticipated.
The Detroit-based company is exploring ways to make more consumer auto loans without running afoul of stricter capital standards that are expected from the Federal Reserve. Possible approaches include more securitizations and the use of credit risk transfers.
The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
Charge-offs and nonperforming loans rose at the Georgia bank in the first quarter. But it blamed the problem on one large client and said the matter has been resolved.
