From CT Attorney General William Tong:
Attorney General William Tong today wrote to leadership of M&T Bank and People’s United Bank seeking detailed information regarding efforts to mitigate job losses and adverse economic impacts to Connecticut workers and communities. Last month, M&T provided notice to the Connecticut Department of Labor that it anticipates 747 layoffs of Connecticut employees should regulators approve the proposed merger with People’s Bank, contradicting assurances made to the Attorney General, community leaders, and bank employees.
“In the wake of your announcement, several local, state, and federal elected officials along with various community members have expressed understandable alarm and consternation over the staggering job losses and overall adverse economic impacts to the City of Bridgeport and the State of Connecticut that may result from the proposed merger. I join those voices and seek clarification and further detail from you regarding your efforts to mitigate any job losses and other potential adverse economic impacts to Connecticut,” Attorney General Tong states in the letter.
Attorney General Tong writes that the layoff announcement came as a “shock to many” as it was at odds with assurances and commitments previously made to him, as well as bank employees and impacted communities.
“The impression you created was that job losses would be minimal and that the merged bank would continue to partner with local communities, the City of Bridgeport, and the State of Connecticut and would otherwise fulfill its obligation to be a responsible corporate citizen. I would like to provide you with the opportunity to explain your prior assurances and put your commitments in writing to the Attorney General’s Office that the merged bank will retain a large majority of People’s Bank employees,” Attorney General Tong states.
The letter seeks comprehensive written responses to a series of questions regarding job retention, mitigation of adverse economic impacts, and corporate responsibility obligations.
Click here to view the full letter.
General Tong and Groove should request a Declaratory Ruling from the Banking Commission on the negative secondary effects of this deal ad the CRIA ramifications.
I just read the AG’s full letter which addresses my thoughts. We are in the right church and the right pew.
And when 747 people and their supporters start singing from the same hymn book, it will be hard to ignore.
Tong’s letter means nothing to M&T.
The staffing level at the People’s HQ is half of what it was 15 years ago. Through mergers and acquisitions much of the back-office functions have been shifted to other states.
Banking regulations have changed.
Interstate banking and technology have changed the banking industry.
The reply from M&T will likely be a reminder to Tong as to how regulations for interstate banking allow such acquisitions through exchange of stock.
M&T will likely assure Tong that M&T will maintain a regional HQ presence. How many people? Very few.
Tong is just huffing and puffing and getting his name out their for a run for US Senate.
I have had personal and business accounts with People’s Bank over the years as it changed its mission and vision and survived very difficult financial times than other Connecticut financial institutions. I am personally sorry to see that the fire among executives who keep the corporation growing was extinguished by the offer from M&T a major player in a larger marketplace.
I can patiently wait to see the changes that occur where I use People’s retail facilities. They still take my deposits and honor the checks I write, though they found in a re-mortgage five years ago that it was evidently more profitable to sell off the servicing of my mortgage to another institution.
I think there is one additional consideration that the local community ought to comprehend and that is the the extent to which the Community Foundation which has met local needs on many occasions in the past will still be attentive to those needs in coming years. What understanding has been discussed, committed to, and is ready for public disclosure.
It is likely that M&T has its own foundation with its own trustees, advisors and employees. Will the People’s funds be available to meet community needs into the future where community funds were harvested, or are they likely to significantly diminish through neglect of the issue? That would be a real slap at the thriftiness and engagement with the many average working folks of our community. What is a good answer? Time will tell.
You’re right. The FIRE is gone -==- extinguished by the urge-to-merge and the money that follows.
People’s management has all the tools needed for domination: assets, branches. back office consolidation and Federal Reserve ammo and guidance!
M&T will respond to each question with the answer Tong wants to hear to appease him and community leaders,but M&T has a merger plan and will follow it.First order of buisness?,layoffs,within a year,that “Regional Headquarters” will be too big for their needs.There is nothing,Tong,Joe, or banking commisioners can do to stop it…
For decades, mergers and acquisitions have moved industries toward a monopoly / socialism status — the opposite of Capitalism.
For education M&T’s CEO has an MBA .
That should stand for More Bank Accountability!