What Does HSBC Sale Mean for Customers, Workers?

August 1, 2011 Updated Aug 1, 2011 at 6:52 PM EDT

By John Borsa

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August 1, 2011 Updated Aug 1, 2011 at 6:52 PM EDT

BUFFALO, NY (WKBW) - There are a lot of questions about the $1 billion deal to sell HSBC's upstate branch network to First Niagara.

While many branch employees will still have jobs when the transfer is completed, what will happen to the HSBC workers who are employed at the downtown tower, Atrium Building and mortgage center in Depew?

HSBC Bank USA CEO Irene Dorner said the bank will maintain its Western New York offices and will keep more than 4,000 workers in downtown Buffalo.

The bank will also continue to be involved in the community, which includes naming rights for HSBC Arena.

"We were very worried that HSBC might close down its branches in Western New York or sell them to a company that would greatly limit the number of jobs," said Sen. Charles Schumer (D-New York). "And thank God that's not going to happen. That's good news for jobs in Western New York."

HSBC is cutting 30,000 of its 300,000 global workforce, but bank officials do not expect the layoffs to impact its Buffalo operations.

As for HSBC's customers, a spokesman said the branch transfer will be "seamless" and customers will have their accounts transferred to First Niagara sometime next year once the sale is approved by federal regulators.

For a list of branches being sold and a customer FAQ, click on "News Links" at the top of the page.

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