KeyCorp's plans to take over First Niagara Financial Group continues to be met with opposition. Erie County Executive Mark Poloncarz and Congressman Brian Higgins were the latest voices against the plan Friday. Time Warner Cable News reporter Rebecca Vogt has more on why they feel this merger will leave customers high and dry.
BUFFALO, N.Y. -- Losing a locally headquartered bank like First Niagara to Cleveland-based KeyCorp isn't sitting well with Erie County Executive Mark Poloncarz.
"This transaction would have negative ramification on this community," said Poloncarz. "One that we might not feel immediately, but will have a tremendous impact on this community for years to come."
He was joined in solidarity by Congressman Brian Higgins, as the pair expressed opposition to the potential takeover Friday morning.
"(It) takes away a corporate HQ in Buffalo and an estimated 1,200 to 1,500 jobs are lost. Economic impact to WNY and that job loss is well over $100 million at a time when Buffalo is experiencing a great renaissance," said Higgins.
On top of job loss, they explained this acquisition will create an anti-competitive environment that will hurt consumers.
"Eighty-three percent of the banking business in the Buffalo-Niagara region will be held by two banks - M&T and the new KeyBank," Poloncarz said. "To have access to multiple products, having competition between banks so they can get the best rates and the best types of products is something we're all worried about."
Despite these issues, the Western New York Law Center views the acquisition as a way to address banking concerns like branch access in low to moderate income areas.
"Community branches, and KeyBank agrees, are the cornerstone in our community. They provide opportunities for individuals to gain access to wealth building tools... We've been urging KeyBank to invest in branches in our community," said Thomas Keily of the Law Center.
Poloncarz and Higgins have written to the Federal Reserve System, pushing for a complete review of the transaction before KeyCorp can move forward with First Niagara.