Webster Bank Shells Out $10.5M Over Condo Funding Row

Law360, New York (November 21, 2011, 6:48 PM EST) -- A subsidiary of Waterbury, Conn.-based Webster Financial Corp. has agreed to pay $10.5 million to settle allegations by an Ohio developer that the bank improperly pulled funding for certain parts of a condo conversion project, according to a Friday regulatory filing by Webster.

The company said in a Form 8-K filed with the Securities and Exchange Commission that unit Webster Bank would also deliver a quit-claim deed to affiliates of the developer, Community Building Systems Inc., giving up any ownership related to the project at the...
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