Skip to content
Subscriber Only

SEC Investigates Fifth Third Hybrids for Insider Trading

U.S. regulators are examining whether investors made illegal trades in Fifth Third Bancorp.’s trust preferred securities after the volume of transactions spiked 54-fold before the bank said it would redeem the instruments, a person with knowledge of the inquiry said.

The Securities and Exchange Commission is looking for evidence of insider trading prior to a May 18 announcement by the bank that it would redeem the investments for less than market value, the person said, asking not to be named because the investigation isn’t public. Cincinnati-based Fifth Third said separately that it will compensate investors who bought the so-called TruPS in the two-days before the redemption offer.