Letter to Jerome Powell, Chair of the Federal Reserve, Rohit Chopra, Director of the Consumer Financial Protection Bureau - Blumenthal Calls for Federal Reserve and CFPB to Investigate M&T Bank Over People's United Conversion

Letter

Dear Chairman Powell and Director Chopra,

I write to request the Federal Reserve and the Consumer Financial Protection Bureau (CFPB) review M&T Bank's handling of the conversion of People's United bank accounts to M&T accounts and take any necessary enforcement action against M&T Bank to ensure future compliance with all applicable laws and regulations. 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. 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.

On March 4, 2022, M&T Bank received final approval from the Federal Reserve to acquire Bridgeport-based People's United Financial, Inc. and People's United Bank. Any such approval is impliedly, if not explicitly, contingent on the acquiring bank complying with all consumer and financial regulations. Consumer access to their funds on a timely basis is a critical underpinning of our financial system. Any unjustified delay by a bank is unacceptable as such delay can imperil the consumers' ability to access their own funds to pay for food and fuel or to avoid late payments on bills.

Further, as part of the proposed acquisition, M&T Bank made a 1,000 employee commitment in Bridgeport as a condition of approval by the Connecticut Banking Department, guaranteeing these job gains within a year of approval. The Federal Reserve and the CFPB should review this commitment and determine whether the bank is complying in good faith with this commitment and whether any failure to do so exacerbated consumers' lack of access to their funds during the account conversion.

The Federal Reserve and CFPB are tasked with oversight of M&T Bank, with the CFPB chiefly responsible for ongoing consumer issues. Therefore, it is imperative to consumers in Connecticut that you take swift action to vigorously investigate all consumer complaints, move to protect consumers who have been harmed by M&T Bank's mismanagement, and provide remedies to make them whole as necessary. Further, any necessary enforcement action should be considered to ensure that M&T Bank is held accountable for its failed transition and to protect consumers into the future.

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