A pair of high-profile Connecticut legislators are not taking the pending layoffs at People’s United Bank lightly.
Bridgeport Mayor Joe Ganim said the city has begun to look into moving its municipal funds out of People”™s United Bank following the news that M&T Bank, which acquired Bridgeport-headquartered People”™s United in February, planned to lay off 661 local employees.
Ganim stated that based on M&T”™s decision, the city”™s Finance Department will “expand their bank depository relationships with financial institutions that have a positive impact on the Connecticut community.”
Although M&T issued a statement that “almost all customer-facing employees” would be retained and People”™s United”™s headquarters in Bridgeport will become its regional headquarters, Ganim nonetheless questioned the Buffalo-based M&T”™s commitment to the city.
“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,” he said.
Ganim also highlighted the example set by Hartford HealthCare and Live Nation in their creation of the Harbor Yard Amphitheater as corporate tenants making a positive impact on the city.
“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,” he said.
Meanwhile, state Sen. Marilyn Moore (D-Bridgeport) is asking the state”™s Banking Committee to investigate the matter.
“I am also requesting a hearing to be held revealing the possible causes as well as potential remedies of the action by People’s United Bank and M&T Bank,” Moore wrote to the committee.
“People”™s United Bank served our community as a partner supporting nonprofits, and local businesses,” Moore noted. “The impact of these layoffs will have a great economic impact on families, and local small businesses who many of the employees frequent. We expect no less from M&T, and these layoffs signal a different relationship and culture with the city and the community.”
The senator said that M&T”™s action “causes families to worry if they will have a way to put food on the table and pay their bills.
“With the news of almost 700 people losing their jobs in Bridgeport, something must be done,” Moore wrote.
Kevin Zimmerman contributed to this report.
