Buffalo, N.Y. (WKBW) – M&T Bank was given more than $700 million in Federal funds during the 2008 bailout, and has paid most of it back.
Due to recent acquisitions, it still owes around $380 million.
While many banks used the Federal cash to survive the turmoil, M&T spent it to grow, buying other firms like Wilmington Trust and Provident Bankshares. Once they took over those firms, M&T ended up with a larger pile of bailout money.
A New York Times report questions why the bank has yet to pay off the loans given its sound fiscal health. In response, a spokesperson with the bank explains.
“We’re committed to paying it in full and, at the same time, committed to our careful, conservative an consistent management principles which have helped keep us strong and stable throughout the crisis,” M&T Spokesperson said.
M&T officials have given no timeline but insiders expect the money to be paid off no later than November of 2013 when the government would increase fees associated with bailout loans.
As it stands now, M&T is the only Western New York based bank that has not paid off the loan.