Commercial banks and other financial institutions have been in a limbo for months, as the government struggles to pass a sweeping banking reform bill that could provide billions in relief for the banking industry and help spur economic growth.
M&t, the nation’s largest commercial bank by assets, was bailed out by taxpayers in 2010 as part of the government’s rescue of a financial institution that was facing a bankruptcy.
The bank’s assets have been shrinking and it recently reported a net loss of $400 million.
M&T is the only major commercial bank that does not have a federal bank guarantee.
The federal government has long been seeking ways to help commercial banks as they struggle to recover from the economic crisis.
The Federal Reserve and the Treasury Department have set aside $4.5 trillion for commercial banks over the next 10 years to help them recover from their financial crisis.
But in the interim, the government has not been able to get the banks to pass on the cost of the bailout to the public.
Mature commercial banks are struggling to get enough capital from taxpayers to help pay for the bailout, and the government is trying to provide relief on the terms of the banks’ bankruptcy petition.
For years, M&M has been negotiating a solution with the federal government, but the issue has been bogged down by the government refusing to agree to the bank’s terms.
The government has argued that the commercial banks need to make more than the cost savings in order to be eligible for a loan.
Under the Dodd-Frank bill, commercial banks must make a 30 percent cost savings to qualify for the taxpayer-funded loan.
Commercial banks are also required to make a 70 percent cost reduction in the first year after the bank goes into receivership.
But M&Ts bankruptcy petition is stalled because the bank has not reached a settlement with the government over its proposed bankruptcy restructuring plan.
M&T’s petition to the federal bankruptcy court is currently stuck in limbo.
In the meantime, the bank is holding out hope that a settlement can be reached with the administration.
But the banks biggest concern is a new requirement under the bill that requires commercial banks to be fully insured for the entire amount of their liabilities.
Commercial banking is a huge industry and is one of the largest sources of jobs in the United States, but there are concerns that commercial banks may be left unprotected from the fallout of the economic fallout from the financial crisis, the Associated Press reported.