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Connecticut AG Seeks Info Regarding People’s Bank, M&T Merger

August 03, 2021, 07:12 AM
Filed Under: Mergers & Acquisitions

Connecticut Attorney General William Tong 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.

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,” 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.

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