CINCINNATI (AP) — A federal agency said Wednesday thatFifth Third Bancorp will pay $6.5 million to
settle charges of improperaccounting of commercial real estate loans during the financial
crisis.TheSecurities and Exchange Commission announced Wednesday the settlementthat also includes penalties
for the bank’s former chief financialofficer.Cincinnati-based Fifth Third said last month it hadreached a
tentative agreement with SEC staff without admitting ordenying the allegations. The bank said Nov. 5 that in
connection withthe proposed settlement Daniel Poston was replaced as chief financialofficer and was named
chief strategy and administrative officer. FifthThird said Poston didn’t admit or deny the SEC
allegations.TheSEC said Poston must pay $100,000 and is suspended from practicingbefore the SEC as an
accountant. He can apply for reinstatement afterone year.As the real estate market slumped in 2007 and 2008,
thenumber of borrowers failing to repay loans climbed. The SEC said FifthThird decided to sell some of its
problem loans, but continued toclassify them as "held for investment" even though they should have
beenlisted as "held for sale." Correct accounting would have increasedFifth Third’s pretax loss
for its 2008 third quarter by 132 percent, theSEC said."Improper accounting by Fifth Third and Poston
misledinvestors during a time of significant upheaval and financial distressfor the company," George
Canellos, co-director of the SEC’s enforcementdivision, said in a statement. He added that "accounting
rules thatdepend on management’s intent must be scrupulously observed.""Weare pleased to have
finalized a settlement, and we’re happy to put thismatter behind us," Fifth Third spokesman Larry
Magnesen said.A message was left for Poston’s attorney.FifthThird operates more than 1,300 banking centers
in 12 states: Ohio,Kentucky, Indiana, Illinois, Michigan, Pennsylvania, West Virginia,Missouri, North
Carolina, Tennessee, Georgia and Florida.Copyright 2013 The Associated Press. All rightsreserved. This
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