Amalgamated in NY pulls application to buy similarly named bank

Amalgamated Financial in New York has called off its planned purchase of Amalgamated Bank of Chicago.

The $6.9 billion-asset Amalgamated Financial in New York had agreed in September to buy Amalgamated Bank for $98.1 million in cash. Chicago’s Amalgamated has $1 billion of assets. 

The New York bank said in a press release Friday that it withdrew the merger application for regulatory approval “due to an inability to obtain such approval.” 

Amalgamated in Chicago had a different take in its press release. 

“The terms of our agreement with Amalgamated Financial ... are clear on what triggers termination of this sale,” the Chicago bank said. “They have not met that threshold as the door on addressing issues raised by the FDIC to obtain regulatory approval is still open." 

Amalgamated Financial "has an obligation to address those issues, which we believe are not financial in nature, and move forward with refiling their application with the FDIC," Amalgamated Bank said. "Our goal is to help them overcome the issues that have been raised and we are confident that the sale can get back on track.”