The Securities and Exchange Commission has given HSBC Holdings PLC's deal to buy Metris Cos. Inc. the go-ahead.
Metris, a credit card company based in Minnetonka, Minn., said Tuesday that the SEC had formally completed its investigation of Metris, though the SEC said earlier this month that it had no plans to recommend any type of enforcement action against it.
Metris said on July 13 that it had received a "Wells" notice from the SEC resulting from an investigation of loan-loss allowances, its valuation of retained interests in securitized loans, and other matters.
The SEC issues such a notice when its staff intends to recommend that the agency bring a civil action against a company for possible violations of federal securities law. The recipient has the chance to file a response before the staff makes the recommendation, which Metris did on Aug. 2.
The $1.59 billion deal with HSBC is expected to close on Dec. 1, pending approval by Metris stockholders. A special meeting for stockholders is scheduled for today, Metris said.
