March 10, 2011
NEW HAVEN DELEGATION UNITED AGAINST BANK MERGER
Representative Roland Lemar (D-Hamden, New Haven), Representative Juan Candelaria (D-New Haven) and Representative Pat Dillon (D-New Haven) testified before Banking Commissioner Howard F. Pitkin against a planned merger between New Alliance Bank and Buffalo New York based First Niagara Bank. Among the concerns of the New Haven delegation members were decreased small business loans, more mortgage hurdles for low income families and decreased personal service.
According to a Yale Law Clinic Community Impact Study, the merger would deprive New Haven of capital accumulated over 170 years, limit capital available to low- and moderate-income communities across Connecticut, reduce small business lending in New Haven, decrease affordable housing finance for low and moderate-income borrowers and cause significant job loss.
“As you know, New Alliance Bank has been a member of our greater New Haven community for just a few years, having taken shape after the unfortunate demutualization of New Haven Savings Bank. I am here tonight in opposition to this merger for numerous reasons—all of them, if the merger occurs, will hurt Hamden and New Haven, our local residents and businesses, and the entire State of Connecticut,” Rep. Lemar said.
“This merger will result in decreased rate competition, fewer local jobs, diminished customer service and far less ability for our community to grow. This deal is bad for our State under any analysis, and our community should not have to suffer this further theft of our once great community asset – New Haven Savings Bank – so that a poorly rated, out-of-State, corporate banking empire can be created,” Rep. Lemar added.
“New Haven has a great need for continued support for small business – this merger has the potential to squeeze off access to capital to the detriment of the local community,” Rep. Candelaria stated. “We all know how communities get hurt when big corporations take over small operations with failed promises of growth and fair practices.”
"This proposed merger is bad for the regional economy - It will cost jobs and restrict credit," Rep. Pat Dillon said. "I am proud to stand with members of the New Haven legislative delegation and the community against this merger."