From Mayor’s Office:
The City Finance Department stated that they will “expand their bank depository relationships with financial institutions that have a positive impact on the Connecticut community. Unless M & T changes its position, the City doesn’t see a choice but to react to their decisions.” This response comes following the surprise news of corporate giant, M & T Bank to lay off more than 700 Peoples Bank employees in Connecticut with over 600 of them being from the Bridgeport offices.
Mayor Ganim stated, “The City has made a clear decision, through the Finance Department, to look for responsible corporate citizens to be custodians of over $50 million of public money as we withdraw that from People’s United and M&T Bank after they’ve demonstrated corporate irresponsibility and lack of transparency. What they should do is look at what happened in Bridgeport today, with corporate leadership and partnership with Hartford HealthCare and Live Nation–two above and beyond corporations that have entered Bridgeport in a responsible and caring way and made a strong commitment. Anybody from the corporate level, or otherwise, that wants to be a part of Bridgeport should look at that as an example of how to enter a community.”
Really; there is nothing more imbecilic than playing chicken for chicken-feed with a soul-less institution that is intent upon completion of the financial pillaging and plundering of its latest merger conquest even as it is in the process of positioning itself for greater shareholder equity/dividend profit-growth in a robust loan market that will soon be in money-tightening mode and dealing with a probable, drastic restructuring of the American economy after the stock-market deflates and the infrastructure money floods the economy… M & T wants to have its merger and eat it too. They don’t care a wit about Bridgeport or a few pennies of City money per its competition with the huge equity liquidation that was the prime motive for the “merger” with People’s United. All that the M & T and (former) People’s execs care about is whacking-up all of that liquidity represented by the redundant People’s infrastructure and market-presence… They want to get that done before the latter are devalued in the coming economic restructuring that will reconfigure the financial markets and banking system.
So, if Mayor Ganim wanted to make a smart move, beyond the symbolic, he wouldn’t be trying to create movement toward a further relationship with M & T/People’s; he would be doing something bold and innovative such as bringing in Hartford and DC (by the political short-hairs) to create an attractive context for an institution such as Bridgewater to take over the People’s property and relocate to Bridgeport, even as he brainstorms (as it were…) with appropriate/relevant entities toward bringing tax-base and jobs to breathe some life into a near-dead down-town in the near-term (or there won’t be a long-term…).
Jeff Kohut has a brain the size of a battleship.
If Mayor Ganim can convince Bridgewater Associates to relocate to Bridgeport from Westport, that would be a political victory that turns a potential nightmare into a much-needed boost. National headlines would follow and Ganim’s photo would appear everywhere.
Best wishes, Mr. Mayor and TAKE A LAP, Bob Walsh!
M&T Bank act like we robbed Bass Pro. from Buffalo NY!
Founded in 1856 in Buffalo, New York, M&T Bank Corporation is a community-focused, regional financial services company with $124 billion in assets under management*, serving customers in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, the District of Columbia, Vermont and Massachusetts.
I have a limited experience in corporate takeovers but my limited personal experience tells me a friendly takeover can quickly become hostile and the winner is usually the one who had the upper hand to begin with.
So Joe had better be careful with what he’s doing. I would put my money on Rene Jones because he is experienced with M & A.
I doubt the City has suspended its financial relationship with People’s/M&T. It would take some time to terminate such huge financial relationship. If the city is currently “seeking” for a new custodian that means they are still doing business.
Hey, by the way Joe. I’m a “custodian” for the City of Bridgeport. Why can’t I be in charge of the $50 million?
I would expect that the City would establish a relationship with a Bridgeport based bank.
But wait. There are no other Bridgeport based banks.
The best way to help Bridgeport is to turn a friendly merger into a hostile takeover =- that way the deal falls apart and things remain unchanged. . Thomas Gill, are you out there? A repurposed SPAC might help. Let’s make history!
I’m disappointed John Barnes, Peoples United CEO, has no confidence in his ability to thrive under current conditions. Backstopped by The Federal Reserve, a bank charter is a license to make money! No mergers necessary.
Lead the charge and take Peoples United private!
Ask Lamont’s wife to join together several SPACs and create a pool of money large enough to buyout Peoples United. It would be the largest SPAC ever!
Here’s the best part:
There is NO SUCH THING as a privately held bank in America — all the others are publicly held.
Conclusion: the new Peoples United will have significant advantages over all other banks and it will be perfectly legal!
Lamont’s wife’s private equity firm in Greenwich https://www.oakhcft.com/