Fifth Third Reaches Agreement In Principle With SEC Staff

(RTTNews) - Fifth Third Bancorp (FITB) announced that it has reached an agreement in principle with the Staff of the Securities and Exchange Commission or SEC to settle a previously disclosed investigation by the SEC into Fifth Third's accounting for certain commercial loans that Fifth Third sold or reclassified as held-for-sale in the fourth quarter of 2008.

The company said at dispute in this matter is whether certain of those loans should have been moved to held-for-sale in the third quarter of that year.

To put into effect the agreement in principle, Fifth Third, without admitting or denying any factual allegations, would consent to the SEC's issuance of an administrative order finding that the company did not properly account for a portion of its commercial real estate loan portfolio in its form 10-Q for the third quarter of 2008.

The company stated that the proposed settlement would also order the company to cease and desist from committing or causing any such violations in the future and to pay a civil money penalty. Fifth Third believes it is appropriately reserved with respect to the proposed settlement.

In connection with these proposed settlements, Fifth Third said Poston has been named the company's chief strategy and administrative officer. In his new position, Poston will oversee the activities of Strategic Planning, Distribution Strategy, Capital Planning, Mergers and Acquisitions, Corporate Facilities, and Strategic Sourcing.

Also, Tayfun Tuzun, previously Fifth Third's treasurer, has been named executive vice president and chief financial officer or CFO, effective October 31, 2013, the company added.