Amalgamated Bank Provides $6.25 Million Loan to Scranton Nation's Largest Union-Owned Bank Provides Critical Financing As City Works Out Details of Financial Recovery
SCRANTON, Pa., Aug. 30, 2012 /PRNewswire/ -- Amalgamated Bank, Scranton's Mayor Christopher A. Doherty, City Council members and leaders from the city's municipal unions today announced the closing of a loan by Amalgamated to provide $6.25 million in short-term financing to the city. The loan is a central piece of a three-year recovery plan and allows the city to make payroll tomorrow, nearly two months after the wages of 400 municipal employees were reduced to minimum wage.
"The City of Scranton has faced years of financial turmoil. After every other financial institution abandoned Scranton, Amalgamated Bank today is stepping forward in a bold way to provide critical assistance that will allow Scranton to have time to finalize the details of our recovery plan and get our long-term fiscal house in order," said Scranton City Council Chair Janet Evans.
"The nation's largest union-owned bank has stepped forward in the truest sense of solidarity," said John Judge, President of Scranton Fire Fighters Local 60. "When hearing that Scranton's fire fighters, police and other municipal employees had their wages cut to minimum wage, the leaders of Amalgamated contacted us to see what they could do to help. We helped them engage the city when no other lenders wanted to step in. We applaud Amalgamated Bank for its leadership and willingness to work with us to help Scranton's workers and its residents."
Amalgamated's loan finances a short-term tax anticipation note approved by the City Council earlier this month. Loan proceeds will provide Scranton with cash flow while it awaits income tax proceeds to be collected in the fourth quarter of this year. The loan alleviates cash pressure on the city allowing it to pay municipal employees and vendor contracts.
"We're very proud to be financial partners with the city of Scranton – a city with a rich union history," said Amalgamated Bank's President and CEO Edward Grebow. "Amalgamated Bank has always supported working families when they needed financial assistance and providing this loan to Scranton is the latest chapter in that history."
About Amalgamated Bank
Established in 1923 by the Amalgamated Clothing Workers of America and now owned by its successor organization, Workers United, Amalgamated Bank continues the progressive traditions of its founders as the largest union-owned bank in the United States. Amalgamated Bank provides banking and investment management services to hundreds of unions and their members, has stood up for the 99% and become the Bank for the Occupy Wall Street movement. Amalgamated also recently became the proud banking partner of the Democratic National Committee and serves not- for-profit organizations across America.
The Bank's corporate divisions are Investment Management, Commercial Banking, Commercial Real Estate Finance, Amalgamated Capital™, and Retail Banking. Amalgamated has 25 retail branches including 20 in New York City, as well as branches in: Las Vegas, Nevada; Lyndhurst, New Jersey; Pasadena, California, and Washington, D.C.
The Bank's website is www.amalgamatedbank.com. Also, follow Amalgamated Bank on Facebook and Twitter.
SOURCE Amalgamated Bank