Charter Change On The Way For Flagship Bank
At the first of 2008, Worcester's Flagship Bank & Trust Co. will be part of the massive People's United Financial family, and as such will have to become a federally chartered bank.
But beyond dropping the regulations of its state charter for a federal charter, there really won't be much difference for Flagship, according to James Garvey, bank president.
People's is spending $1.9 billion in cash and stock to buy Vermont-based Chittenden Corp., Flagship's parent company. "People's is on a federal charter, and all the (Chittenden) banks will be on a federal charter and under the same regulations," Garvey said.
Garvey said the change, which is subject to state Division of Banks approval, could well have gone the other way without anyone noticing. "If they were a state charter, and we were federal, we'd probably become a state charter," he said.
According to the Division of Banks, Flagship's charter change does not call for any changes that would affect employees or the bank's name. "I'm sure the state would like to have us as a customer," Garvey said, but it's People's choice.
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