Hudson City (HCBK) Plunges on Regulatory Concerns

Shares of Hudson City (NASDAQ:HCBK) are plummeting Wednesday on news it could be the recipient of an informal regulatory enforcement action.

In a filing with the SEC today, Hudson City said the U.S. Office of Thrift Supervision may might issue a memorandum of understanding forcing them to make changes to its business.

Some of the changes may include restrictions on dividend payments, higher capital requirements, taking on more debt, or repurchasing stock.

Of particular note was the interest rate risk faced by Hudson, which is apparently what triggered the probable regulatory actions.

Hudson City Bancorp was trading at $9.92, falling $0.98, or 9.01 percent, as of 12:46 PM EST.