HARTFORD, Conn (WTNH) — U.S. Sen. Richard Blumenthal is the latest state leader to chastise M&T Bank following a merger last weekend that has left some customers without access to their bank accounts.
The Democrat is asking the Federal Reserve and the Consumer Financial Protection Bureau to investigate the merger and “take any necessary enforcement action” against it, according to a letter from the senator to the two agencies.
“I am deeply concerned that this conversion left individuals and businesses without access to the most basic information about their own funds and in some cases without immediate access to those funds,” he wrote. “This past weekend, the conversion to M&T Bank took place and immediately led to chaos for far too many consumers and businesses. Individuals lost access to their bank accounts, endured hours-long wait times only to see no resolution, saw delays in payments, and overall had little or no customer support or information. To be clear, as a result of M&T Bank’s mismanagement of this transition, people lost access to their own money.”
His statement comes a day after Connecticut Attorney General William Tong sent a letter to the bank following “numerous complaints” from customers and employees.
“I share your customers’ outrage at the serious lack of preparation for this conversion,” Tong’s letter reads. “M&T’s poor planning cost Connecticut customers timely access to their banking records, their bill pay systems, and their money. Connecticut customers wasted hours of time on hold and in branches trying to sort out problems that should have been addressed prior to the conversion. Should Connecticut consumers continue to experience extended gaps in customer service, my office will not hesitate to use the full extent of our authority to protect families and businesses.”
M&T Bank bought People’s United Bank in 2021 for $8.3 billion.
After another letter last year, the bank “made a series of commitments” for jobs in Connecticut, Bridgeport, and its regional headquarters in Tarrytown, New York. Tong now wants more in-depth information to see if those promises were kept.
“At that time, I noted that this was an important step forward after a series of mixed messages and confusion,” Tong wrote in the letter. “While I appreciated those commitments, I also noted at that time that I would be watching closely to ensure that your actions matched your written commitments to local jobs and Connecticut communities.”
Tong had previously “noted alarm and consternation over staggering anticipated job losses and potential for economic harm to the City of Bridgeport and the State of Connecticut,” according to his letter.
What you need to know as People’s United Bank merges with M&T Bank
In response, Tong wrote the bank said it would keep 72% of the People’s United Bank’s Connecticut workforce, equaling 1,959 jobs. That includes a thousand people in Bridgeport. However, about 750 Connecticut employees were warned that their jobs “could be severed.”
Since then, complaints “have not inspired confidence,” with Tong noting that customers can’t access their online accounts, real estate closings might be delayed and customers are facing long wait times in branches and over the phone. Automatic payments have also been impacted. Employees have also seen pay cuts.
The newest letter was sent by email on Wednesday and addressed to Michael Keegan, the bank’s executive vice president and head of community markets. The letter opens with Tong expressing “deep concern” about the Labor Day weekend merger.
