New Haveners Fight (Another) Bank Takeover

Opponents of a proposed $1.5 billion takeover of New Haven’s last major locally-headquartered lending institution chose a surprising bank to praise as part of their argument: NewAlliance, yesteryear’s corporate bete noir.

Close to 300 opponents—including elected officials, buildings trades union members, community activists—filled Conte West Hills Magnet School auditorium Wednesday night to urge state Banking Commissioner Howard PItkin to reject Buffalo-based First Niagara Bank’s proposal to purchase NewAlliance Bank.

The turnout at the Pitkin-chaired four-hour hearing amounted to a dramatic show of local resistance to the deal.

Opponents argued that First Niagara has a poor community lending record—judged “satisfactory” under the federal Community Reinvestment Act (CRA). And they repeatedly contrasted that record with the “outstanding” rating earned by Elm Street-headquartered NewAlliance.

Seven years ago many of the same opponents filled the same auditorium to urge a previous banking commissioner to block the creation of NewAlliance as a shareholder-owned regional successor to a depositor-owned local mutual named New Haven Savings. The argument back then, in part: NewAlliance would roll back community lending.

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