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Sunday, October 5, 2014

H&R Block deal to sell bank to BofI Federal snagged with regulators, (NYSE: HRB)

Tax preparer H&R Block Inc said on Sunday that its deal to sell its bank to BofI Federal Bank will not be approved by regulators before next year's tax season. "We are extremely disappointed with this development," Bill Cobb, H&R Block's president and chief executive officer, said in a statement. He added, "we remain committed to exiting our bank and forming a long-term relationship with BofI."BofI Holding Inc, which owns San Diego-based BofI Federal, issued a similar statement and said it remains committed to the deal.Both companies said they would hold conference calls on Monday to discuss the developments, with H&R Block's call starting at 9 a.m. Eastern time (1300 GMT) and BofI's call starting at 10 a.m. (1400 GMT).The deal had been announced on April 10.

H&R Block, Inc. (H&R Block) through its subsidiaries provides tax preparation and banking services. Shares of HRB traded higher by 3.03% or $0.93/share to $31.66. In the past year, the shares have traded as low as $26.60 and as high as $33.92. On average, 1922480 shares of HRB exchange hands on a given day and today's volume is recorded at 4253356.