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Federal prosecutors in Chicago have filed charges against 10 individuals tied to an alleged vehicle financing scheme that cost Fifth Third Bancorp (FITB) and 19 other lenders more than $56 million.
September 3 -
The U.S. Department of Housing and Urban Development is charging Fifth Third with discriminating against a couple with disabilities who were attempting to refinance their mortgage.
August 23 - North Carolina
In its latest deal, Fifth Third Bancorp said Thursday that it agreed to acquire First Charter Corp., a Charlotte company with significant exposure to the Southeast's commercial real estate sector, for $1.1 billion, a price some analysts described as expensive.
August 17
Fifth Third Bancorp (FITB) in Cincinnati was ordered this week to pay First South Bank in Spartanburg, S.C., $2.8 million in damages for a real estate deal gone sour.
Fifth Third was found guilty of breach of contract and fraud by a federal jury in September for actions taken by First Charter Corp., a Charlotte, N.C., company it
First Charter offered First South the opportunity to co-finance an $11 million construction and development loan in 2006. First South agreed to contribute 36% of the loan, roughly $4 million, in 2007.
It was a bad investment.
First Charter, which promised to service the loan, neglected to follow the usual cautionary procedures in closing the real estate deal with Burton Creek Investment, according to a complaint First South filed this September. First Charter instead produced a sham letter from an attorney certifying that the loan had been closed properly. It later altered the terms of the loan without consulting or notifying its co-financer, according to the complaint.
As the development deal unraveled and Burton Creek fell behind on its payments, First Charter hid the borrower's defaults from First South and allowed the bank to continue funding the loan, the complaint said. The cover-up not only blindsided First South but also later prevented it from taking "meaningful recourse" against Burton Creek, the complaint said.
A Fifth Third spokeswoman said that the bank does not comment on matters of litigation. First South did not respond to calls seeking comment.
