Exhibit 23.7      
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                           CONSENT OF MERRILL LYNCH

        
     We hereby consent to the use of our opinion letter dated December 23, 1996
to the Board of Directors of Webster Financial Corporation included as Appendix
B to the Proxy Statement which forms a part of the Registration Statement on
Form S-4 relating to the proposed merger of DS Bancor, Inc. with and into
Webster Financial Corporation and to the references to such opinion in such
Proxy Statement under the caption "Opinion of Webster Financial Advisor". In
giving such consent, we do not admit that we come within the category of persons
whose consent is required under Section 7 of the Securities Act of 1933, as
amended, or the rules and regulations of the Securities and Exchange Commission
thereunder, nor do we thereby admit that we are experts with respect to any part
of such Registration Statement within the meaning of the term "experts" as used
in the Securities Act of 1933, as amended, or the rules and regulations of the
Securities and Exchange Commission thereunder.      
         
         
         
         


                                              
                                          MERRILL LYNCH, PIERCE, FENNER & SMITH
                                           INCORPORATED     


                                             
                                          By:  /s/ Michael F. Barry 
                                               --------------------------------
                                               Michael F. Barry
                                               Director-Merrill Lynch & Co.
                                               Investment Banking Group     

        
December 23, 1996          

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