[mdovell]

Originally Posted by JayCT

Please provide a link to where the tribes say that the canceled East Windsor casino cost them $100 million. I looked and can’t find it or anything that shows what they spent. Like I said $100 million is a lot for what the tribes did so far for the casino. It doesn’t make sense. Jay

Like I said in the earlier post it is 20 million quoted directly from the tribe itself. They didn't break it down but like I said any demo work is easily in the millions. You add in the cost of buying the land, demo, legal team and yes I can easily see 20 million being spent over the course of years.Add in some environmental regs and some permitting and it can get that high. 20 million is still a fair amount but it's not really that much more than a scratch to them.

[mdovell]

Originally Posted by JayCT

So why is ALL the “synergies” directed at Bridgeport? M&T also says it wants “strengthen” its ties to Connecticut. The only strengthening they want is access to our rich towns. Pretty nasty IMHO. Jay

But what's wrong with that? You have a cheap place ( bridgeport) in the middle of a much more expensive place (FFC). The only reason why any business is in the suburbs to access rich towns, just as GE.

No company really has an allegiance to a state or region.

[BobNJ1960]

Originally Posted by mdovell

No company really has an allegiance to a state or region.

Spot on. Btw, from Jay's link, many details showed how much larger the acquirer was vs People's. Combined Assets: 200 billion. People's total before bought: $63 billion, or 31.5% of it.

Plus its states People's shares will be converted to just 28% of the stock of the combined company.

M&T, therefore, had 68.5% of the assets, 72% of the equity. Majority portion makes the rules; minority share follows the rules.

People's was big and important to Bridgeport, but small in the industry, even to a regional bank like M&T.

$200 billion would rank the new combined bank 15th in total assets of US banks, and People's was under 1/3rd of that total. It was going to be bought by some bank, and not as the major player in the transaction.

https://www.usbanklocations.com/bank...al-assets.html

[mdovell]

Back around 2003 I was at a company that bought out another. First we bought out one division and then the whole thing years later. Now we kinda promised people there they'd have their jobs but someone changed their mind and there were layoffs. At the same point one day one guy...just one. Bought 10% of the company. No one knew who he was or what he wanted but we were pretty much scared #%^$less for a week or two. He sold it off. Even today no one knows what was planned. It can get scary when you can be bought, sold and traded. That portion of the company we bought wasn't so much because we wanted it. But it was because we didn't want another company to have it. It didn't make us money but if some other company figured a way how then that would hurt us.

Banking consolidation is nothing new. I know someone that has a career in banking (now at Key I think) went from mass to ct to now Maine. Banking can be like walmart. Cashiers aren't financial experts and managers are managing the shifts and cashiers. If you have actual services selling investments that might be on a per case basis and might not be exclusive to that bank. Major financial deals aren't made on a retail bank level but more on regional, state and national offices. Some people act like anyone working at a bank is some Harvard MBA Quant and that's just not true, that might be the 1930's image as that was before calculators, excel and financial education.

The layoffs will have a huge impact in Brattleboro and to a point Bridgeport but I doubt most in FFC will feel anything. If you have a problem with a bank you can move it elseware. The basics of banking are the same. Take deposits in and lend out for more than what you pay the depositors. Banks shouldn't fail. But you do have vett the standards for lending. Most of this is going online. Unless you deal with some sort of commercial deals (which are usually with the biggest banks in the country) this can be just an app. I hardly ever walk into my bank. Of course there's the operations of the bank itself. Chances are you don't have a HR manager on a individual bank level. General administration is what is probably be what the bulk of the layoffs are. I'm sure HR managers can find another place to do HR, financial accountants, tax accountants etc

It's funny when people talk about jobs leaving. There's plenty of mill towns in new england and those moved down south probably 80 or so years ago and then to Asia about twenty years ago. I just took a health insurance sales call and I have no idea where she was from. CT should look away from banking, finance and insurance as key industries. I'm sorry but if the can be done anywhere then what is the point exactly? I'd argue we have to focus more on creative experiences to validate price.

[BPt111]

I agree CT need to focus on more industries Miami for etc is trying lure tech companies.

[JayCT]

Originally Posted by BobNJ1960

Because Bridgeport is just a regional hq, and the corp hq avoids the hits. This was not a merger of equals. M&T was far larger before the merger than People's, and People's stock was liquidated in return for fewer M&T shares. They also awarded Peoples a minority portion of board seats.

M&T is strengthening its ties by adding Ct market share it did not have. They will have access to our towns now. Routine business strategy, not nasty if you are familiar with mergers and the meaning of what they call "synergies". Personally, I prefer calling it terminations. They make solid business sense, but I abhor the sugar coating of what the result is-terminations.

My 4-20 post projected it well as I have been at corps that merged or bought other corps. This is a quite mundane business merger doing all the routine things that occur in a merger. I was at a Ct company bought by an out of state larger corp 30+ years ago, who did just what M&T is doing, except within 2 years, the entire Ct staff was gone. No bad will. I anticipated it, moved on. These 661 will also move on. We always have bank hqs looking for seasoned staff at the hq level somewhere in the nation, usually in many states at any given time. I am hoping many of the 661 not only get new jobs, but time it well enough to get a nice severance deal from M&T, as well. That would be terrific!

Merging companies does not have to mean they have to eliminate all corporate functions at one location. Actually People’s is a good example. Those 256 employees were from when People’s acquired Chittenden Bank in Burlington, Vermont in 2008. Rather than have mass layoffs in Burlington, People’s kept certain jobsthere. M&T could have easily done that. Jay

[JayCT]

Originally Posted by mdovell

Like I said in the earlier post it is 20 million quoted directly from the tribe itself. They didn't break it down but like I said any demo work is easily in the millions. You add in the cost of buying the land, demo, legal team and yes I can easily see 20 million being spent over the course of years.Add in some environmental regs and some permitting and it can get that high. 20 million is still a fair amount but it's not really that much more than a scratch to them.

You said $100 million, not $20 million.

Originally Posted by mdovell

The tribes themselves said the cost of the property, demo work and litigation was 100 million. We can debate what a loss technically can be but it's not like it puts them in bankruptcy. I'd argue they can white it off on taxes.you also have to figure the design, the bidding process they tried, If a legal team at a few grand a hour works full time for a few years that can also add up. Litigation can also come from contractors hired but not used. Remember Centerplan? Same thing but more private. It was supposed to be 2,300 construction jobs. 100 million at 2300 jobs isn't even 44,000it is completely possible for a firm to paid if the project gets cancelled (ie bonding)

I'm not sure if they can sell it off, that depends on the state and tribal agreements. East Windsor still wants that 3 million a year, they might get it

$20 million makes more sense. It may sound like a lot but they can sell off the East Windsor property to recoup some of the cost and the sports betting deal they got means hundreds of millions in revenue and profits. It’s a great deal for them. Jay

[BobNJ1960]

Originally Posted by JayCT

Merging companies does not have to mean they have to eliminate all corporate functions at one location. Actually People’s is a good example. Those 256 employees were from when People’s acquired Chittenden Bank in Burlington, Vermont in 2008. Rather than have mass layoffs in Burlington, People’s kept certain jobsthere. M&T could have easily done that. Jay

I suspect , also based on ex's region, Peoples was ok with tiny population regions, M&T , like most banks this size, is not based on Vt layoffs. Her area and Vermont have similar characteristics in size, economy, etc.

As for the hq, People's did not have a comparable situation. Keeping $15 an hour branch jobs in Vermont is not comparable. It wasn't not wanting to lay off. Peoples has laid off many in my ex's region, but not all, as they kept some, but not all branches they bought. They are like any employer-bottom line focused.

Peoples never bought a bank with a significant hq. That is the big difference.

This is routine of what occurs when it happens.

I have no issues, so far, with how M&T has handled this. A second hq is a waste of money, and since the CEO is from M&T, he is, no doubt, far more comfortable with his existing hq team.

I also have no fears regarding those affected, as its a solid industry, and hq experience makes them very marketable.

[BobNJ1960]

Originally Posted by mdovell

Banking consolidation is nothing new. I know someone that has a career in banking (now at Key I think) went from mass to ct to now Maine.

Great point, and I have also known several upper mgmt bank staff, who have relocated quite a bit. It will occur with Peoples staff, also. I am sure most will have new jobs in a short period of time, and I have wished many well on a different social media website. They know it goes with the industry.

For many of them, I suspect even better jobs lie ahead. Solid industry, tons of opportunities at this time.

I still use a Southeastern bank, and think by 2025, it will either merge as an equal or be bought like People's as a lesser player , despite being much larger than Peoples was alone. Until then, I will keep using them, but bank consolidations, like many other industries with consolidations, is a fact of life. My southeastern bank bought some regionals and closed their hqs. 1 hq is sufficient for any bank.

Bridgeport needs to be working on filling the vacuum these cuts create with equally well-paying jobs, and to do so, tax breaks should be the M.O.

[JayCT]

Originally Posted by BobNJ1960

I suspect , also based on ex's region, Peoples was ok with tiny population regions, M&T , like most banks this size, is not based on Vt layoffs. Her area and Vermont have similar characteristics in size, economy, etc.

As for the hq, People's did not have a comparable situation. Keeping $15 an hour branch jobs in Vermont is not comparable. It wasn't not wanting to lay off. Peoples has laid off many in my ex's region, but not all, as they kept some, but not all branches they bought. They are like any employer-bottom line focused.

Peoples never bought a bank with a significant hq. That is the big difference.

This is routine of what occurs when it happens.

I have no issues, so far, with how M&T has handled this. A second hq is a waste of money, and since the CEO is from M&T, he is, no doubt, far more comfortable with his existing hq team.

I also have no fears regarding those affected, as its a solid industry, and hq experience makes them very marketable.

You don’t have a problem with how M&T handled this because it doesn’t affect you. That’s very telling.

The Vermont jobs aren’t $15 an hour branch jobs. They are office jobs People’s kept when they merged with Chittenden Bank. 176 of them are at the Williston Operations Center and 51 in Brattleboro. This scale of job loss can be devastating to small towns. But hey, it doesn’t affect you so it doesn’t matter. As long as there’s a profit to be made and M&T is forthright, there’s nothing wrong with this. Jay