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Volume 11 ••• Fall 2012

Amalgamated Bank Lends a Helping Hand to Scranton, Pennsylvania

Critical Financing Helps City Work out Details of its Recovery Plan

John Judge
Firefighter John Judge

Amalgamated Bank recently provided $6.25 million of short-term financing to the City of Scranton, Pennsylvania. The loan plays a critical, near-term role in Scranton’s efforts to shore up its finances.

Nearly two months ago, the salaries of 400 municipal employees were reduced to the minimum wage level. Now with Amalgamated’s loan, the City can make its full weekly payrolls and pay its vendors while completing and putting in place a three-year fiscal recovery plan.

“The City has faced years of financial turmoil. After every other financial institution abandoned Scranton, Amalgamated Bank stepped forward in a bold way to provide critical assistance that will allow us 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.”

“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. “Our Bank has always supported working families when they needed financial assistance, and providing this loan to Scranton is the latest chapter in that history.”