UPDATE: Compass Point Downgrades Hudson City Bancorp; Lowers PT

According to a research report published this morning, Compass Point has downgraded Hudson City Bancorp

from Buy to Neutral, and lowered PT to $7. In the report, Compass Point said, "We are downgrading the shares of HCBK to Neutral. In their recent 10-Q filing, HCBK disclosed that they received a new memorandum of understanding from the Federal Reserve on April 24. While the language would imply the new MOU is generally no different than the current one with the OCC, we remain concerned. Why has the Fed inserted themselves into the situation a year after the initial MOU, and why was there no mention of it in the earnings release which was announced a day after the new MOU was received? Also, the MOU states the company must obtain approval before issuing debt with a maturity greater than one year." Hudson City Bancorp is currently trading at $6.42.