In the Matter of Fifth Third Bancorp, et al.
Admin. Proc. File No. 3-15635
On December 4, 2013, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Fifth Third Bancorp (“Fifth Third”) and Daniel Poston (“Poston”) (collectively, the “Respondents”). In the Order, the Commission found that, in the third quarter of 2008, Fifth Third violated the federal securities laws when it failed to record substantial losses during the financial crisis by not properly accounting for a portion of its commercial real estate loan portfolio. In his role as CFO, Poston failed to ensure that Fifth Third appropriately recorded its commercial real estate loans; certified that Fifth Third’s financial statements were prepared in accordance with GAAP; and made representations in a Fifth Third management representation letter to Fifth Third’s auditors regarding the company’s classification of commercial loans that were not true. The Commission ordered, and the Respondents have paid, a total of $6,600,000.00 in civil money penalties. The Commission ordered that such penalties will be held pending a decision whether the Commission will seek to distribute the funds, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended or transfer the funds to the U.S. Treasury. See the Commission’s Order: Release No. 33-9490.
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