Press Release

ARCURI, CLINTON DEMAND ANSWERS FROM FED RESERVE

Washington, DC -- In response to the abrupt closing of the Utica Federal Reserve Office and the potential loss of nearly 200 jobs, U.S. Representative Michael A. Arcuri (D-Utica) and U.S. Senator Hillary Rodham Clinton (D-NY) sent a letter today to Ben Bernanke, Chairman of the Federal Reserve System, expressing their strong opposition to the closure and how its announcement were handled.

Arcuri and Clinton demanded answers from the Federal Reserve regarding the decision to close the office, the execution of the closing, and any plans to assist employees affected by the closing.

“I am deeply troubled that we were not told of this closing ahead time or given any opportunity to voice our concerns,” said Arcuri. “It’s bad enough when the private sector out sources jobs overseas, but it’s unforgivable when our own government does it to us.  In Washington, we are fighting for those resources needed to revitalize the local economy and create jobs. I sincerely hope the Federal Reserve will cooperate with our offices to find job training and employments services for affected employees and answer our questions regarding this closure.”

“This closure will be devastating, not only for the employees and their families but for the entire community,” said Clinton. “It is unacceptable that this decision was made without the opportunity for the workers, community members or their elected officials to make the case to keep this facility open.  The Federal Reserve owes it to the community to fully explain their reasoning for this abrupt closure.”

Below is the letter sent to Chairman Bernanke:

June 27, 2007

The Honorable Ben Bernanke
Chairman
Board of Governors of the Federal Reserve System
20th and Constitution Avenue, NW
Washington, DC 20551

Dear Chairman Bernanke:

            We are writing to express our disappointment and concerns over the announcement made by the Federal Reserve Banks on June 26, 2007, to close a check processing facility located at the Oneida County Industrial Park in Whitestown, New York (Utica, NY).

            While we can appreciate the Federal Reserve Banks’ efforts to increase efficiency and adopt a new business strategy to meet changing consumer and business preferences, we question whether the supposed cost savings justify the loss of nearly 200 jobs and the subsequent impact the closure of the facility will have on the Banks’ operations.

            We are also troubled that we were made aware of this closure from media reports.  At no point were any of our offices contacted prior to yesterday’s announcement to provide justification for the closure. 

            It is our sincere hope that you will provide an expeditious response to our concerns.  Specifically, we request that you address the following questions and requests for information:

• Did the Federal Reserve Banks apply a rating system to determine which four sites would be selected as “regional check processing sites?”

• If the Federal Reserve Banks did apply a rating system, how did the Utica, NY facility rank amongst all other existing sites?

• Did the Federal Reserve Banks conduct a cost-benefit analysis of consolidating all check processing sites into four regional centers?  If so, can you share that analysis or any other supporting information regarding the four regional center consolidation plan?

• Can you provide us more detail regarding the “variety of programs” the Federal Reserve Banks will offer to employees who will be negatively affected by the four regional center consolidation plan?

      Thank you in advance for your prompt response to our inquiries.

Sincerely,

U.S. Rep. Michael A. Arcuri (NY-24)
U.S. Senator Hillary Rodham Clinton
                                                                 

###