- After nine months, the Fed has given approval to KeyCorp's (KEY +2.2%) purchase of First Niagara Financial Group (FNFG +1.9%).
- KeyCorp now expects to close the deal Aug. 1 following a formal OK from the U.S. Comptroller of the Currency.
- The move will transform Western New York banking, making KeyCorp that region's No. 2 retail bank, behind only M&T Bank.
- KeyCorp has confirmed it plans to lay off no more than 250 people, and to retain all branch employees. It will close 106 retail branches, including 23 in Western New York.
- The deal had to clear a regulatory hurdle as the Justice Dept. looked into minority lending practices at First Niagara.