By Jeff McKinney
The Cincinnati Enquirer

Fifth Third Bancorp could be a step closer to getting out from under regulatory oversight that has prevented it from making acquisitions and hurt its stock during the past year.

The Cincinnati banking giant said Monday that it has been notified by the Federal Reserve Bank of Cleveland that it is in compliance with the Gramm-Leach Bliley Act.

"Today's announcement that we are in full compliance with Financial Holding Company Regulations is related to many of the same matters that resulted in the written agreement," Fifth Third spokeswoman Robbie Jennings said.

"At this point, we have submitted all documentation required, and we're working with the regulators to verify our progress."

Federal Reserve officials in Cleveland declined to comment.

Fifth Third's announcement comes a year after the bank reached a written agreement with the Federal Reserve and the Ohio Department of Commerce Division of Financial Institutions to solve internal accounting errors and improve its risk-management processes.

That agreement also came after the Fed issued a letter in November 2002 that imposed a moratorium on future acquisitions, a key growth element.

While Fifth Third said its agreement with regulators remains in effect, it has completed the steps necessary to achieve full compliance with the financial holding company and subsidiary requirements.

Some of those standards fall under Gramm-Leach-Bliley, a law passed in 1999 that allows banks, brokerage firms and insurance companies to enter each other's businesses.

At least one banking analyst says the announcement is good news for Fifth Third. He said it could be a sign that the Fed is about to lift the order, possibly by April 15.

Fifth Third is scheduled to have its 2003 annual meeting today.

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E-mail jmckinney@enquirer.com