ON THE HEELS OF THE NEWS THAT JOBS COULD BE CUT IF KEYCORP SUCCEEDS IN ACQUIRING BUFFALO-BASED FIRST NIAGARA FINANCIAL GROUP, SCHUMER CALLS COMPANY – SENATOR URGES CEO TO PROTECT JOBS IN WESTERN NEW YORK THAT COULD BE IMPACTED BY THE DEAL
KeyCorp Has Plans to Acquire First Niagara In $4.1 Billion Takeover; The Deal Would Make Key 13th Largest U.S.-Based Bank – However, Schumer Has Serious Concerns That The Acquisition By The Ohio-based BankCould Lead To Job Losses in WNY
While Key Bank Has Been Part Of The Buffalo Community For Years, Schumer Remains Concerned Acquisition Could Mean Layoffs For Local Workforce & Negatively Impact Regional Economy – Schumer Calls CEO Of KeyCorp To Urge Company To Protect WNY Jobs
Schumer: I Will Watch This Situation Like A Hawk & Continue to Do Whatever I Can To Protect WNY Jobs
Following the news that the Board of KeyCorp has approved plans to acquire the Buffalo-based First Niagara Financial Group, U.S. Senator Charles E. Schumer today urged the company to ensure that the jobs in Western New York are protected. Schumer said that while KeyBank has been a part of the Buffalo community for years, given the significant overlap in the footprints’ of the two banks, this $4.1 billion takeover could mean job losses across Western New York and negatively impact employees and the regional economy. As a result, Schumer called KeyCorp CEO Beth Mooney and urged her and the company to protect these good-paying jobs and to play a positive role in Buffalo’s revitalization.
“I spoke directly with KeyCorp CEO Beth Mooney, and made it very clear to her that my first priority is protecting the more than 3,100 Western New York jobs that First Niagara and KeyCorp provide. The significant overlap between these banks makes the prospect of this deal extremely troubling, but I told her that these important jobs in Buffalo and across Upstate New York must be secured for the long-term before I could support any potential deal,” said Schumer. “These jobs are vital to the local community and regional economy, and the employees at First Niagara have been a key driver in the company’s success over the years – so they should continue to remain a critical part of KeyCorp if this merger goes through.”
On Friday, KeyCorp executives announced that its Board of Directors had approved a proposed deal to purchase First Niagara for more than $4 billion. However, in light of this news, Schumer expressed concern that this acquisition could mean job loss and a lack of competition in Upstate New York. While this acquisition has been lauded by executives and the Boards of these two institutions, Schumer argued that, upon initial examination of the deal, it seemed extremely troubling given the potential impact on the hard-working employees of First Niagara and KeyBank across upstate New York.
During the call to CEO Mooney, Senator Schumer vowed to continue monitoring the situation and working with both institutions to ensure local employment levels for both banks are protected. Following the call, Schumer said he would fight tooth and nail to stave off any potential cuts. First Niagara employs 2,230 people in Western New York with KeyCorp employing 1,100. These companies play an integral role in the regional economy and serve as major sources of employment for the local workforce.