Public Meeting Transcripts
Public Meeting Regarding Fleet Financial Group, Inc., and BankBoston Corporation
Wednesday, July 7, 1999
Presiding Officer's Remarks
3 PRESIDING OFFICER SMITH: Thank you, 4 Richard. I am pleased to welcome you to this 5 important public meeting on the application by Fleet 6 Financial Group to acquire BankBoston Corporation. 7 Richard has already done so, but for the record I'll 8 go ahead and introduce myself. I am Dolores Smith, 9 Director of the Division of Consumer and Community 10 Affairs at the Federal Reserve Board in Washington, 11 D.C. I'll be the Presiding Officer for this 12 meeting. 13 Other members of our panel include two from 14 the Federal Reserve Bank of Boston and two from the 15 Board. First, Boston, we have Bill McDonough on my 16 extreme right, the bank's General Counsel. Then at 17 my extreme left Lynn Browne, Senior Vice President, 18 Research and Statistics. 19 From the Board on my left, Myron Kwast, who 20 is the Associate Director for the Division of 21 Research and Statistics, and to my right Scott 22 Alvarez, who is the Associate General Counsel. 23 We are here today because Fleet Financial 24 Group, Boston, Massachusetts, has applied for 25 approval to acquire BankBoston Corporation, Boston, 0011 1 Massachusetts. When the Federal Reserve considers 2 one of these applications, we look at a number of 3 factors under the Bank Holding Company Act. These 4 include financial issues, managerial issues, 5 competitive issues, and the convenience and needs of 6 the communities affected. In doing so, we 7 particularly look at the record of performance of 8 the parties under the Community Reinvestment Act. 9 The Community Reinvestment Act requires the 10 Board to take into account an institution's record 11 of meeting the credit needs of its entire community. 12 The Fleet-BankBoston application also 13 involves the proposed acquisition or retention of 14 nonbanking companies engaged in activities 15 permissible for bank holding companies. The Federal 16 Reserve Board must determine whether the proposed 17 nonbanking activities can reasonably be expected to 18 produce benefits to the public that outweigh 19 possible adverse effects such as undue concentration 20 of resources, decreased or unfair competition, 21 conflicts of interest or unsound banking practices. 22 The purpose of the public meeting today is 23 to receive information regarding these factors. We 24 will be seeking to elicit this information and to 25 clarify factual issues related to the application. 0012 1 We are very pleased that so many people 2 have been willing to come and testify at the public 3 meeting today. We expect to have more than 160 4 groups and individuals represented during the course 5 of the meeting. 6 And I want to tell you a little bit about 7 the procedures. This is what is called an informal 8 public meeting. Members of this panel may ask those 9 who are testifying about their testimony. This is 10 not a formal administrative hearing, so we are not 11 bound by rules regarding evidence, 12 cross-examination, and some of the formal trappings 13 of that kind of proceeding. 14 As you can see from the agenda, we have a 15 very long day ahead of us and we will need to stick 16 to the schedule closely so that everyone who has 17 asked to offer oral testimony will have a chance to 18 do so at the appointed time. We ask the witnesses 19 to be mindful of the needs of others and to help us 20 stay on schedule. 21 The witnesses on each panel will be 22 expected to stay within their allotted times. We 23 have a signal system that we will be using. We have 24 two timers seated at -- two timekeepers seated at 25 the table, and we will also have panels that are of 0013 1 varying sizes, so that for most of the panels the 2 witnesses will have between three and five minutes 3 to present their oral statements. In a few 4 instances the witnesses have been allotted slightly 5 longer times. The timekeeper will give you a signal 6 generally when there is one minute remaining to 7 speak and another -- do you want to hold that up in 8 both directions so that the people in back can see 9 you. And then there is a second card that they will 10 hold up when the time is up. 11 And sometimes it's hard for the witnesses 12 to be looking at the panel, the Federal Reserve 13 panel, and also to be minding the timekeeper, so 14 there may be times when the witness doesn't notice 15 that the "Please Finish" sign has been held up, in 16 which case the timekeeper will give an audio signal, 17 and we'll try to call your attention to that. 18 You will also see from the schedule that we 19 in several cases do have a rather large number of 20 persons on a given panel, and they will each have 21 about one minute at the microphone. This we have 22 done so that we can provide an opportunity for all 23 of these persons individually to have their say 24 before this public meeting. 25 Finally, there may be some persons who were 0014 1 unable to sign up in advance, so to the extent 2 possible we want to give them a chance to speak as 3 well. We have scheduled toward the end of today's 4 meeting an open-mike period when we will make the 5 microphone available to any member of the public who 6 wants to make an oral presentation, time permitting. 7 Witnesses at this public meeting also may 8 submit a written supplement to their oral testimony, 9 but they must do so by next Wednesday, July 14th, 10 and then the record will be closed. Any written 11 supplements should be directed to Jennifer J. 12 Johnson, Secretary of the Board, Federal Reserve 13 Board, Washington, D.C. 20551. They must be 14 received by 5:00 p.m. Eastern Daylight Time on the 15 14th. Submissions also could be faxed to Area Code 16 202-452-3462. 17 Witnesses, if you have not turned in copies 18 of your written testimony or if you have any other 19 written statement to put into the record, please 20 leave it with the Federal Reserve staff at the 21 registration table. It is important that we get 22 this information for the record. A transcript of 23 the meeting will be available by probably Monday, 24 July the 12th, through the Federal Reserve Bank of 25 Boston and through the Federal Reserve Board. 0015 1 In addition, the official transcript will 2 be available by the close of business July the 14th 3 on the Board's public Web site at 4 www.bog.frb.fed.us. 5 And with that, let's begin the proceedings 6 and have members of our first panel. 7 In the interest of time, what I'll ask is 8 that you each state your name, organization, and 9 then we'll start with that. 10 MR. MURRAY: I'm Terry Murray, Chairman of 11 Fleet Bank Group. 12 MR. GIFFORD: I'm Chad Gifford, Chairman, 13 BankBoston. 14 MS. SNOWDEN: Gail Snowden, Managing 15 Director, BankBoston. 16 MS. SCANLAN: Agnes Bundy Scanlan, Managing 17 Director of Fleet Financial Group. 18 PRESIDING OFFICER SMITH: Mr. Murray.
Last update: December 3, 2010