Republic New York Corp. said Monday that an internal investigation into the bank's relationship with a money manager accused of securities fraud was still in progress.
In a short statement, the bank said press reports suggesting that the investigation had been completed were "erroneous." Republic said that it was making the statement because of "market developments."
Republic's shares rose 4% on Friday after a London newspaper reported that HSBC Holdings Corp. had received a copy of a confidential report about the investigation's findings. The shares fell $1.375, to $60.1875, on Monday's announcement. A Republic spokeswoman declined to comment on whether preliminary findings had been shared with HSBC.
HSBC has agreed to buy Republic for $10.3 billion. The deal, originally scheduled to close Friday, is now expected to close by yearend. -- David Weidner