EXHIBIT 16





October 5, 2001


Securities and Exchange Commission
Washington, D.C. 20549


Ladies and Gentlemen:

We were  previously  principal  accountants for Federal Trust  Corporation  and,
under the date of February 2, 2001,  we reported on the  consolidated  financial
statements of Federal Trust Corporation and subsidiaries as of and for the years
ended  December 31, 2000 and 1999. On September  28, 2001,  our  appointment  as
principal  accountants was terminated.  We have read Federal Trust Corporation's
statements  included  under Item 4 of its Form 8-K dated October 8, 2001, and we
agree with such statements.

Very truly yours,

KPMG LLP