skip to main navigation skip to secondary navigation skip to content
Board of Governors of the Federal Reserve System
skip to content

Public Meeting Transcripts

Public Meeting Regarding Banc One and First Chicago

Thursday, August 13, 1998

Transcript of Panel Thirteen

         20       MS. CARRILLO:  Thank you.  My name is Rita
         21   Carrillo.
         22       MS. SMITH:  Oops, oops, I guess we're not
         23   ready.
         24       MS. CARRILLO:  My name is Rita Carrillo.  I'm
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   the Executive Director of Neighborhood Housing
          2   Services of Phoenix.
          3            The NHS of Phoenix is a nonprofit
          4   organization founded in 1975 and is dedicated to
          5   neighborhood revitalization through the creation of
          6   home ownership opportunities for low and moderate
          7   income families.
          8            To accomplish this, the NHS provides home
          9   buyer education and counselling, develops new and
         10   rehabilitated, affordable single-family homes and
         11   develops flexible mortgage financing programs to
         12   meet the credit needs of low and moderate income
         13   borrowers.
         14            In the last three years, the NHS of
         15   Phoenix has provided home buyer education to over a
         16   thousand families, created 251 new homeowners and
         17   developed 30 affordable new single-family homes for
         18   a total community investment of over $17 million.
         19            I mention this because Banc One Arizona
         20   has been a strong and long-standing partner of the
         21   NHS in all of these endeavors.
         22            Banc One and its predecessor, Valley
         23   National Bank, have been leaders in corporate
         24   support for community development in the Phoenix
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   Metropolitan area.  And in the Phoenix area, this
          2   is very significant because we are not headquarters
          3   to many major corporations and banks have
          4   traditionally been the corporate leaders in our
          5   community.
          6            Banc One is the NHS's single largest
          7   financial contributor and a major contributor to
          8   numerous other community development efforts in the
          9   City of Phoenix.  It is also exemplary in the
         10   leadership provided by top management on important
         11   community issues.
         12            Banc One Arizona's CEOs are and have had a
         13   tradition of being active members of the
         14   community.  They volunteer their time and resources
         15   to organizations and initiatives for the betterment
         16   of the community.  This includes issues such as
         17   mass transportation programs, homelessness and
         18   public education programs.  This commitment to
         19   volunteerism filters down to all levels of the
         20   bank.
         21            As the largest bank in Arizona, Banc One
         22   sets the tone and level of commitment provided by
         23   the other financial institutions in the state.  For
         24   example, the NHS of Phoenix recently launched an
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   effort to create a second mortgage loan pool that
          2   would provide below-market interest rate loans to
          3   low and moderate income families.  Banc One was the
          4   first to make a verbal commitment for a major
          5   investment in the loan pool.  With that commitment,
          6   the other banks at the table quickly signed on as
          7   well.
          8            The current Banc One Arizona CEO, Michael
          9   Wellborne, is a member of the NHS Board of Trustees
         10   and as such assists the NHS by soliciting other
         11   corporate support for our programs.
         12            Banc One staff sit on the NHS Board of
         13   Directors and participate on the NHS Loan
         14   Committee.
         15            As mentioned by others testifying here
         16   today, of most importance to a community is a
         17   financial institution's approach to community
         18   development and corporate social responsibility.
         19            Banc One has always sought to be
         20   knowledgeable on community issues.  It is an
         21   approach that seeks to understand diverse
         22   perspectives and respond to rather than dictate
         23   community needs and priorities.
         24            Of significance to the nonprofit and
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   minority communities in the City of Phoenix and to
          2   me personally was my appointment four years ago to
          3   the Banc One Arizona Corporate Board of Directors.
          4            Of its own accord, Banc One chose to
          5   become the first and still the only major bank or
          6   any bank in Arizona, in the state, to appoint a
          7   representative of a nonprofit community development
          8   organization and a minority woman to its legal
          9   Board of Directors.
         10            With the continuation of this commitment
         11   and this approach to community activism and
         12   development, the merger of Banc One and First
         13   Chicago NBD will create a stronger bank and, thus,
         14   should bring additional resources and stability to
         15   the community development efforts in the City of
         16   Phoenix.
         17            As a result, the NHS of Phoenix
         18   anticipates a continued and strengthened
         19   partnership with the post-merger Banc One.
         20            Thank you.
         21       MS. SMITH:  Thank you.
         22            And we'll go to Ms. Coleman.
         23       MS. COLEMAN:  Good afternoon.  My name is Marva
         24   Coleman.  I am the Executive Director of the Five
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   Points Business Association in Denver, Colorado.
          2            We are a nonprofit organization that has
          3   been founded since 1963.  We promote economic
          4   development in our area.  Also, we do business
          5   counselling, special events, business improvement,
          6   marketing and we provide economic development in
          7   our area.
          8            The demographics of the area that I do
          9   work in is 65 percent African American, 35 percent
         10   Hispanic and Asian.
         11            The area that we work in, that I work in,
         12   is a seven-block area that is very important to
         13   keep because it's the only African American strip
         14   that is left in Colorado that is seven blocks
         15   long.  It has restaurants and it provides many
         16   entrepreneurs that are minorities, and we need to
         17   keep that alive.
         18            One of the roles of Banc One is to provide
         19   financial support for my office.  Because we're
         20   nonprofit, it's very difficult to find funding, and
         21   Banc One has provided this kind of support for six
         22   years.
         23            They provide things such as technical
         24   assistance.  We have Ma and Pa restaurants,
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   existing business, new businesses that really does
          2   need technical assistance.  They provide
          3   scholarship funds for us.  They provide a lot of
          4   funding for an event that we put on in Colorado, in
          5   Denver especially, called Juneteenth.  And this
          6   year, we were able to provide a huge, huge number
          7   of support.  180,000 people went to our Juneteenth
          8   event, which has made us larger than Texas, which
          9   was very interesting.
         10            They also provide banking education, which
         11   means that they come into our establishment,
         12   provide classes.
         13            One of the very, very important things
         14   which I mentioned before is the scholarship
         15   program.  We have given over $100,000 worth of
         16   scholarships, and without Banc One's support, we
         17   are not able to do this.  And it's very important
         18   for the education of the African Americans, Asian
         19   and Hispanics in our area.
         20            I would like to at this time support the
         21   merger because Banc One is one of the banks that's
         22   always been in our corner.  They've always provided
         23   services for us.  We can call on them at any time.
         24   They've been there.
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1            We also have an employee that is on our
          2   board, and that is very important.  She keeps us in
          3   line, she supports us tremendously and makes sure
          4   that we are on target and also makes sure that we
          5   know exactly what's going on in the banking
          6   industry.
          7            I thank you very much for your time.
          8       MS. SMITH:  Thank you, Ms. Coleman.
          9            Mr. Fairfield.
         10       MR. FAIRFIELD:  My name is Steven Fairfield.
         11   I'm the Executive Director of Fifth Ward Community
         12   Redevelopment Corporation in Houston, Texas, a
         13   resident-founded and resident-governed CDC in
         14   Houston's lowest income community and the home of
         15   Barbara Jordan, Mickey Leland, George Foreman and
         16   other trailblazers in the African American
         17   community.
         18            I agree with my colleagues that public
         19   subsidy in the form of Federal Deposit Insurance
         20   creates an obligation to provide a corresponding
         21   public benefit and that too much industry
         22   consolidation can adversely affect the scope and
         23   depth of investment and credit available in low
         24   income communities.
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1            However, I am here to testify that Banc
          2   One has delivered the goods in our community and
          3   their entry into the Houston market earlier this
          4   decade through the acquisition of an old Texas
          5   institution served to expand the scope and depth of
          6   investment and credit available in our community.
          7            Our first experience with Banc One in 1991
          8   was not a positive one with the mortgage shop
          9   saddled with peculiar southern operating practices
         10   remaining from the institution they acquired
         11   previously in Houston.
         12            After complaining about these practices,
         13   Banc One instituted a housecleaning resulting in
         14   the creation of the city's friendliest mortgage
         15   shop for our low income clients, something that was
         16   later copied by other local lending institutions.
         17            The bank has subsequently donated
         18   furniture for our offices, provided general
         19   operating grants to us, offered us construction
         20   lines of credit, financed a neighborhood finance
         21   center on an environmentally troubled tract of land
         22   will feature an electronic banking kiosk for Banc
         23   One, as well as a roaming loan officer, a small
         24   business center, consuming credit counselling
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   services case manager, policed storefront, new home
          2   ownership center and a one-stop insurance center.
          3            The bank has also offered competitive
          4   investment and mortgage financing for a mixed use
          5   retail and residential project we have under
          6   construction.  In fact, unfortunately, the bank has
          7   offered us so much credit that we haven't been able
          8   to use it all because we have a policy of working
          9   with multiple lenders, but they're always there
         10   with an offer for us when we have a new project.
         11            As an advocate six years ago, I and four
         12   Texas colleagues formed the Texas Housing Finance
         13   Corporation to raise investment equity for
         14   hard-to-do affordable housing transactions that
         15   were small or rural or had special uses and were
         16   more difficult to originate.
         17            Banc One was our first multi-million
         18   dollar investment commitment for that fund and has
         19   continued as a lead investor in subsequent funds,
         20   and they are now entertaining an investment in a
         21   new venture capital fund we have created in Houston
         22   to invest in minority-owned businesses in Houston's
         23   inner city.
         24            In short, seven years ago, we were a CDC
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   on paper only.  Since that time, we have developed
          2   over 300 units of new rental affordable housing,
          3   nearly a hundred scattered site homes, over 200
          4   senior home repairs and improvements, two
          5   neighborhood clinics, a Head Start center, a
          6   finance center, a policed storefront, the equity
          7   funds I mentioned and other economic development,
          8   public safety and beautification initiatives.
          9            Through this time, Banc One has been the
         10   best top-to-bottom person who's committed to what
         11   we're trying to do in Houston's lowest income
         12   community of banks that are not based in our city.
         13   And we haven't, in fact, been able to use all of
         14   the resources that they have offered to us.
         15            So I speak here in support of what Banc
         16   One has done in our community for our low income
         17   residents.
         18            Thank you.
         19       MS. SMITH:  Thank you very much.
         20            We'll go to Mr. Garcia.
         21       MR. GARCIA:  I want to first thank you for the
         22   opportunity to come here today before you.  I'm the
         23   past president of the Indiana Hispanic Chamber of
         24   Commerce.
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1            I was the president for five years and
          2   have a long relationship with the Banc One
          3   organization.  And fortunate enough, we have a
          4   relationship with NBD and First Chicago NBD, so we
          5   have the best of both worlds in Indianapolis.
          6            I've heard a lot of opinions and
          7   definitely a lot of facts here today, but I can
          8   only speak in regards to Indianapolis and the
          9   Indiana community.
         10            Banc One and First Chicago NBD continue to
         11   provide us with leadership and support within our
         12   community.
         13            I have been involved in three mergers
         14   individually and as the representative of the
         15   Indiana Hispanic Chamber of Commerce, and some of
         16   them have been very uncomfortable, and I would say
         17   that the last one -- maybe we're getting it down
         18   now, but it has it has become more comfortable.
         19            And through those mergers, the success has
         20   been primarily dependent upon maybe three things,
         21   and one is definitely communication with community,
         22   commitment to that community.  And probably most
         23   important is the adherence, if you will, or
         24   maintaining of the current leadership.
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1            Our leaders, our bank leaders, the bank
          2   leaders from Banc One and NBD in Indianapolis,
          3   Indiana continue to fight, continue to promote the
          4   involvement in our community of Indianapolis.
          5            Many of those founders or I would
          6   primarily say Andy Payne and Joe Barnett, who are
          7   the leaders there in Indianapolis founded many
          8   minority and women-owned minority programs that
          9   still live today, and these are programs that have
         10   been in existence for ten or more years.
         11            So with the culture that we have received
         12   in Indianapolis, it's been very positive in
         13   strengthening all through the mergers that we have
         14   experienced.
         15            The merger of First Chicago NBD and Banc
         16   One can propose success or failure.  It's really
         17   dependent upon, again, the continuity of the
         18   culture and the individuals that stay within that
         19   area.  And that's why we are cautious but we are
         20   confident that NBD, First Chicago NBD -- there's so
         21   many names, I can't get them all out -- and Banc
         22   One will be positive to the communities that we
         23   work in and have.
         24            I can say a few things about the Hispanic
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   Chamber of Commerce and my company.  I'm President
          2   of GM Construction in Indianapolis, Indiana, but I
          3   take a very proactive approach within the community
          4   that we work in.
          5            First Chicago and Banc One and NBD
          6   continue to support organizations like statewide
          7   certified development corporations which provides
          8   funding and guidance and leadership to small
          9   businesses.
         10            They also provide leadership and
         11   involvement to the Indiana Hispanic Chamber of
         12   Commerce, the Black Chamber of Commerce, also
         13   Indiana's Business Development Corp.  They supplied
         14   us with two million dollars of a loan pool that we
         15   could draw on.  Our MESBIC, which we call LINKS,
         16   which is primarily -- I believe it's quarter of a
         17   million dollars and above in loans, they supplied
         18   $2 million for that fund also.
         19            And again, it goes back to my previous
         20   statement, which is our leaders are involved in the
         21   Indianapolis community, and that's why we're
         22   successful.
         23            Banc One has never turned down one of my
         24   clients, if you will, or my representatives with
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   the Indiana Hispanic Chamber of Commerce.  I've
          2   brought numerous numbers, over 25 people or more,
          3   and we have never walked away from the table
          4   without some type of positive result.
          5            Now, maybe those individuals at that time
          6   or those companies could not perform or provide the
          7   information needed for that criteria, but we always
          8   had a secondary plan, and Banc One stood at the
          9   table and stayed there until we came up with that
         10   secondary plan.  And we thank them for that.
         11            And because of that, in Indianapolis, I
         12   know that we have in the top 100 companies in the
         13   Hispanic 500, we have two of them.  And in the 200,
         14   we have five of them.
         15            So in Indianapolis, which has an Hispanic
         16   community of only about two percent, has been very
         17   progressive and forthcoming as far as experience
         18   and success, and part of that is due to the
         19   relationship with Banc One.
         20            I would say in closing that the Latino
         21   community, Hispanic community, of Indianapolis, we
         22   support this merger.
         23            We have had individuals that continue to
         24   sit on the CRA Advisory Council for Banc One for
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   the State of Indiana, and they listen to us.  They
          2   take our recommendations and implement them.
          3            Our only concern, again, is that both
          4   entities continue with the proactive approaches
          5   towards the Hispanic community of Indianapolis and
          6   other cities and that the new Banc One, as it's
          7   been deemed, is even more sensitive to the needs of
          8   our community.  So we support it in totality.
          9            Thank you.
         10       MS. SMITH:  Thank you.
         11            Ms. Gnau.
         12       MS. GNAU:  Thank you for the opportunity to
         13   speak with you today about our relationship with
         14   Banc One.
         15            My name is Debbie Gnau, and I'm one of
         16   three female owners of the Chesapeake Group in
         17   Cincinnati, Ohio.
         18            We started the Chesapeake Group in 1994,
         19   and we specialize in package designs for consumer
         20   package goods companies.  Our clients include
         21   Hines, Starkist, Jergens, Paragon Trade Brands,
         22   Marzetti, Chiquita and many others.
         23            Our business has grown from $600,000 in
         24   1995, our first full year of business, to
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   $1.4 million last year, and we're on target to do
          2   $2 million this year.
          3            We view Banc One as a key partner in this
          4   success, our provider of choice.  They serve as a
          5   lender and cash management provider as well as an
          6   important advisor to our company.
          7            Our relationship with Banc One began in
          8   November of 1994 with a meeting in Cincinnati with
          9   Dave Outcalt, a Banc One officer.  Dave met with
         10   Geralyn Curtis, our president, and reviewed our
         11   five-year start-up business plan.
         12            Despite limited prospects for any
         13   tremendous business from us at the offset, he
         14   nonetheless spent several hours with her getting to
         15   know our business plan, understanding what we felt
         16   we would uniquely bring to the party and
         17   understanding our detailed financial assumptions
         18   and business plans.
         19            They reviewed financing options, cash
         20   management details, and importantly, Dave also
         21   provided us with a few recommendations for other
         22   key advisors, including our attorney who we believe
         23   to be one of the best at what he does.
         24            We decided initially to self-fund our
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   start-up, so based on the helpfulness Dave
          2   provided, we moved our checking account from
          3   Provident Bank to Banc One with our incorporation
          4   in January of 1995.  We've had our checking account
          5   with Banc One since that time.
          6            Starting with the day we opened our
          7   account, the branch managers have typically gone
          8   above and beyond the call of duty.  On that first
          9   day enabling us to leave the bank with the check we
         10   needed to sign our office lease that day.
         11            The managers have been consistently
         12   helpful and timely with all of our requests,
         13   including the time one of us accidently threw away
         14   our check register and we had to try and
         15   restructure it.  Unfortunately, I have to admit to
         16   be the one that did that.
         17            Finally and very important to us, Banc One
         18   has loaned us money to help meet our cash
         19   management and growth needs.  Kevin Plaugher met
         20   with us in 1996 and spent a great deal of time
         21   learning about what we do.
         22       MS. SMITH:  You're fading.
         23       MS. GNAU:  Learning about what we do.
         24       MS. SMITH:  That's better.
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1       MS. GNAU:  Learning about what we do, what our
          2   growth plans were and where we needed help.
          3            As a result of our meeting, we were able
          4   to obtain both a term loan to fund commuter
          5   equipment we needed as we hired additional
          6   designers as well as to obtain a line of credit to
          7   address the lag in receivables which was growing
          8   large.  Since that time, we've expanded our line of
          9   credit as our business has grown.
         10            Wanda Walker-Smith joined Kevin in working
         11   with us, too.  She, too, has spent a good deal of
         12   time getting to know us and our business.  She was
         13   also kind enough to nominate Geralyn Curtis, our
         14   president, for Woman Entrepreneur of the Year,
         15   which Geralyn was awarded in June.
         16            Wanda has also worked with us to make sure
         17   we're aware of and utilizing any specific services
         18   that can make our work easier.
         19            We also had the opportunity to talk over
         20   lunch with Kevin, Wanda and Larry Bradley, the
         21   Senior Vice President of the Business Banking Group
         22   in Cincinnati, about our needs and to provide our
         23   insight for the future in an effort to make sure
         24   Banc One has the appropriate products in place for
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   customers like us.
          2            We look forward to working with Banc One
          3   as our company continues to grow and appreciate
          4   their ability to take time to counsel us on ways to
          5   better manage our money and our future growth.
          6   Thank you.
          7       MS. SMITH:  Thank you very much.  We'll now go
          8   to Mr. Gary.
          9       MR. GARY:  My name is Printice L. Gary, and I'm
         10   the managing partner of Carlton Residential
         11   Properties located in Dallas, Texas.
         12            Carlton Residential is a for-profit
         13   developer and general contractor of affordable as
         14   well as market rate housing throughout the State of
         15   Texas.  Carlton also happens to be a 100 percent
         16   minority owned company.  I have two other partners
         17   in the business.
         18            I founded Carlton Residential in 1991, and
         19   my first transaction was the acquisition of a
         20   192-unit affordable housing project in South
         21   Dallas, which is predominantly a minority
         22   community, and this acquisition was funded by a
         23   $2.9 million acquisition loan from Banc One at a
         24   time when the banking industry in Texas was pretty
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   much in chaos.  And this kind of marked what I
          2   considered to be a truly outstanding banking
          3   relationship with Banc One looking at that time
          4   going forward.
          5            Since that time through different project
          6   level entities, Banc One has provided more than $67
          7   million in construction, permanent and equity
          8   financing for Carlton Residential.  This has
          9   produced 1,240 units of housing, 740 of which are
         10   affordable strictly, rent restricted, and obviously
         11   has enhanced the growth of our company.
         12            Our relationship with Banc One has been
         13   one distinguished by their ability to be innovative
         14   and their willingness to venture with us in new and
         15   creative development formats and financing
         16   structures.
         17            By way of example, and I'm going to use
         18   two, both are in impacted areas and both projects
         19   have public housing projects within a stone's throw
         20   of each of these developments.  By way of example,
         21   consider the Trainmore City Place, 192 units, mixed
         22   income, new development in Texas.
         23            In this transaction, Banc One provided a
         24   $2.5 million bridge loan as well as a $2.8 million
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   tax credit equity for the transaction.
          2            The key element here is that the entire
          3   transaction became a reality when Banc One
          4   committed early to the transaction at a time when
          5   other banks in Texas wouldn't touch a mixed income
          6   type project development.  As it turns out today,
          7   mixed income across the nation is the way of the
          8   future.
          9            The project was very successful, and it
         10   was so outstanding that we proceeded to Phase 2
         11   which included 70 units, and in that transaction,
         12   Banc One performed as our permanent lender, and as
         13   it turned out, First Chicago was our equity
         14   investor and they purchased the tax credits in what
         15   turned out to be a pretty seamless transaction.
         16            As a second case in point, a local
         17   nonprofit community development organization, Maple
         18   Avenue Development Corp, in Dallas, discovered a
         19   six-acre land parcel in their neighborhood that
         20   appeared to be appropriate for multi-family
         21   affordable housing production.
         22            Carlton combined with Maple Avenue and we
         23   got the land under contract, produced a site plan
         24   that included 144 affordable units and went out
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   looking for equity, someone that would partner with
          2   us and provide the necessary financing.
          3            While this urban neighborhood clearly was
          4   improving, the gentrification was showing, because
          5   of the presence of the project housing project
          6   nearby, most Texas banks wouldn't even take a look
          7   at it.
          8            Banc One CDC stepped in and after
          9   thoroughly reviewing the market with us provided a
         10   $1.4 million equity commitment for the project and
         11   also provided a seven and a half million dollar
         12   permanent takeout through Banc One CDC which
         13   supported a seven and a half million dollar
         14   construction loan from their local affiliate in
         15   Dallas, Banc One of Texas.
         16            Believe me, at that time, there's no other
         17   bank in Dallas that would have provided that kind
         18   of comprehensive commitment for the production of
         19   affordable housing.
         20            A couple of other points.
         21            I really applaud Banc One's approach to
         22   community development where they take a partnering
         23   approach as opposed to some other institutions
         24   forming their own development corporations, and
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   that partnering approach allows people like myself
          2   as well as some of the local community people to
          3   build to capacity and to experience and development
          4   their companies.
          5            Looking forward, Texas is going to
          6   probably experience greater growth than most of the
          7   other -- many other cities in the nation and
          8   thereby create a real need for affordable housing.
          9            The way I see it, I think that Banc One
         10   has its delivery system already in place.  The
         11   combination with First Chicago will add more
         12   capital and overall provide for more -- 30
         13   seconds -- financing for affordable housing in the
         14   state.
         15            If I could show you just one image, and it
         16   just shows the quality that can be produced by
         17   local developers if you've got the right kind of
         18   financial partner.  This is the Trainmore City
         19   Place.  And without Banc One's help, this simply
         20   wouldn't have happened.
         21            Now right in that neighborhood is a public
         22   housing project.  They have applied for Hope 6
         23   funding.  Together with the development of the
         24   Trainmore, which is a real cornerstone that helps
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
          1   revitalize that neighborhood, hopefully, that
          2   entire area will be revitalized.
          3            Obviously, I'm very much in favor of the
          4   Banc One/First Chicago merger.  I think that it
          5   will enhance the ability to do more affordable
          6   housing in Texas, and hopefully, they will continue
          7   their relationship with us.
          8            Thank you.
          9       MS. SMITH:  Thank you very much.
         10            Any questions?
         11            I have an announcement.  Nancy Hayne, you
         12   have a fax, if you would stop by the registration
         13   table.
         14            We'll be starting with Mr. Bellamy, if we
         15   can hand him the mic.
Last update: December 3, 2010