Home > Banking Information & Regulation > Public Meeting Transcripts > PMT - Agendas July 9-10, 1998
Public Meeting Transcripts
Public Meeting Regarding NationsBank and BankAmerica
Friday, July 10, 1998
Transcript of Opening Remarks
415 1 JULY 10, 1998 8:37 A.M. 2 P R O C E E D I N G S 3 ---oOo--- 4 MS. SMITH: Good morning. Let me start by 5 welcoming you to the second day of this important public 6 meeting on the application of NationsBank Corporation to 7 acquire BankAmerica Corporation. 8 I'm Dolores Smith the Director of Division of 9 Consumer and Community Affairs of the Federal Reserve 10 Board in Washington D.C. I'm the presiding officer for 11 this public meeting. 12 Our other panelists are: To my left, bob 13 Freirson, who is Associate Secretary of the Board, and 14 to my right, Ken Binning, who is Director for 15 Applications and Financial Analysis, Division of Banking 16 Supervision from the Federal Reserve Bank of San 17 Francisco; and to his right Trish Nunnley, Assistant 18 Counsel from the Federal Reserve Bank of Richmond. 19 We are here today because NationsBank 20 Corporation of Charlotte, North Carolina, has applied 21 for approval to acquire BankAmerica Corporation in San 22 Francisco, California. 23 When the Federal Reserve system considers one 24 of these applications, we look at a number of factors 25 under the Bank Holding Company Act, these include 26 financial issues, managerial issues, competitive issues 416 1 and the convenience and needs of the communities 2 affected. In doing so, we particularly look at the 3 record of performance of the parties under the Community 4 Reinvestment Act. 5 The Community Reinvestment Act requires the 6 board to take into account an institution's record of 7 meeting the credit needs of its entire community. 8 The NationsBank application also involves the 9 proposed acquisition or retention of non-banking 10 companies engaged in activities permissible for bank 11 holding companies. 12 The board must determine whether the proposed 13 non-banking activities can reasonably be expected to 14 produce benefits to the public that outweigh possible 15 adverse effects such as undue concentration of 16 resources, decreased or unfair competition, conflicts of 17 interest or unsound banking practices. 18 The purpose of the public meeting is to 19 receive information regarding these factors. We will be 20 seeking to elicit this information and to clarify 21 factual issues related to the application. 22 We are very pleased that so many have been 23 willing to come and testify at this public meeting. We 24 will have altogether about 200 groups and individuals 25 represented during the two-day session. 26 I'll make a few remarks about the procedures. 417 1 This is what is called an informal public meeting. 2 Members of the panel may ask those who are testifying 3 about their testimony. This is not a formal 4 administrative hearing, so we are not bound by the rules 5 regarding evidence, cross-examination and some of the 6 formal trappings of that kind of proceeding. 7 As you can see from the agenda, we do need to 8 stick to the schedule very carefully so that everyone 9 who has asked to offer oral testimony will have a chance 10 to say what they would like to say. 11 We are going to ask the witnesses today to be 12 mindful of the needs of others and to help us stay on 13 schedule. 14 The panels will be expected to stay within 15 their allotted times. We have a signal system with 16 regard to timing. We have two timekeepers, Ariel 17 Andress and Jessica Abehr. They will give a signal when 18 the witness has two minutes left to speak and another 19 signal when the time is up. 20 Occasionally the timekeeper may be unable to 21 get someone's attention when the time has expired. At 22 that point -- I forgot. There are actually two signals. 23 There is one given when there is one minute remaining, 24 so she will hold up a card. And then, when the time has 25 expired, she will hold up another card initially, but 26 when she is unable to give someone's attention, shell 418 1 give a gentle, musical nudge (indicating). Something 2 like that. 3 There also have been some individuals who are 4 unable to sign up in advance, and, to the extent 5 possible, we are going to give them a chance to speak as 6 well. That will take place at the end of the meeting 7 this afternoon when we will make the mike available to 8 anyone who would want to make a presentation, time 9 permitting. 10 Witnesses may submit a written supplement to 11 their oral testimony by next Friday, July 17th, and then 12 the record will be closed. 13 Any written supplements should be directed to 14 Jennifer J. Johnson, Secretary of the Board, Board of 15 Governors of the Federal Reserve system Washington D.C., 16 20551. 17 This is information that has been provided to 18 the witnesses already, and, if someone needs to have it 19 in writing, it can be obtained from the registration 20 desk. 21 These written supplements must be received by 22 5:00 p.m. Eastern Daylight Time next Friday. They can 23 be faxed to area code 202 452-3462. 24 The July 17 date applies only to these 25 supplements to oral testimony. The general public 26 comment period closed yesterday. 419 1 Also, for witnesses, if you haven't turned in 2 copies of your written testimony, or, if you have any 3 other written statements to put into the record, please 4 leave them with the Federal Reserve staff at the 5 registration table. It's important that we get this 6 information for the record. 7 A transcript of the meeting will be available 8 by July 14th through the Federal Reserve Bank of San 9 Francisco and the board. 10 In addition, the official transcript will be 11 available by close of business on July 15th on the 12 board's public web site, which is www.bog.frb.fed.u.s. 13 Technology willing, it might be ready on July the 14th. 14 With that, we will begin with our first panel. 15 This morning we have -- if I can find it -- 16 the Honorable Rosemary Corbin, Mayor of the City of 17 Richmond, who is representing the West County Mayors and 18 Supervisors Association, and then we also will have 19 Michelle Fadelli, standing in for the Honorable Mary 20 King, Supervisor for Alameda County. 21 I think we were scheduled to start with 22 Ms. Fadelli.
Last update: December 3, 2010