Sen. Charles Schumer, D-N.Y., has asked for more time for public comment on KeyCorp's proposed takeover of First Niagara Financial Group, and said more study is needed on the deal's potential economic impact on western New York.
Schumer wrote two Federal Reserve officials to request an extension of the deadline for public comment, the Buffalo News reported. Schumer asked that the deadline be extended from Dec. 31 to Jan. 31. Schumer sent his letter to Fed Gov. Daniel Tarullo and Cleveland Fed President Loretta Mester.
The Federal Reserve on Monday declined to comment on Schumer's letter, Buffalo Business First reported.
The $93 billion-asset KeyCorp, in Cleveland, in October agreed to buy the Buffalo-based First Niagara for $4.1 billion. The $39 billion-asset First Niagara has 52 branches in the metropolitan Buffalo area, holding about $10 billion of deposits, according to the Federal Deposit Insurance Corp.
"Every element of this potential purchase should be reviewed and critiqued – by both regulators and the Western New York community," Schumer said in a statement. "This means fully studying the deal's impact on competition, community reinvestment and providing ample opportunity for the public to voice their concerns."
First Niagara's jobs are "vital" to the Buffalo community and to the regional economy, Schumer said.
The First Niagara jobs "should continue to remain a critical part of KeyCorp if this merger goes through," he said.
First Niagara employs about 2,300 people in western New York, according to Buffalo Business First.