Public Meeting Regarding NationsBank and BankAmerica - Panel 7
Thursday, July 9, 1998
Transcript of Panel Seven
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9 MS. SMITH: All right. Thank you. If we
10 can start, please
11 MR. BROWN: Good afternoon. My name is
12 Keith Brown and I am from Kansas City, Missouri. I am
13 a minister, a community activist, I am the Executive
14 Director of an organization called Project
15 Neighborhood, and the focus of Project Neighborhood
16 is to work with service providers, community groups
17 and coalitions and neighborhoods to restore
18 neighborhoods to safe, drug-free, economically-viable
19 communities.
20 One way that we feel if we're going to get
21 a real hold and grip on the problem of substance abuse
22 is really to develop the economic infrastructure and
23 commercial infrastructure of the urban core in Kansas
24 City.
25 And NationsBank, without fear of
26 successful contradiction, marvelous things have begun to
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1 take place in our community. Because and as a result of
2 the partnership with the NationsBank under the
3 leadership of the regional president William, Bill,
4 Nelson, a Rainbow Coalition has developed. For the
5 first time, people of color, clergy, community
6 activists, city planners, civic leaders, have gathered
7 themselves around the table to really -- not only to
8 discuss but to strategically plan on how are we going to
9 rebuild the infrastructure, the economic infrastructure
10 of the urban core of Kansas City, Missouri.
11 What has taken place is that we have had
12 the opportunity to go on tours in the community to see
13 what some of the problems and the concerns are relative
14 to redevelopment and development. For the record, I
15 have a video that, you know, illustrates that as well as
16 a pictorial presentation that illustrates that. I'm
17 going to turn that in.
18 We feel that if NationsBank -- they have a
19 marvelous track record, and if they have been able to do
20 what they are embarking on in our community in terms of
21 really enhancing the viability and the aspirations of
22 that community, if they can do that by themselves, then
23 we feel that a merge with them and BankAmerica will only
24 increase and enhance what we are striving and what we
25 have begun to do in the City of Kansas City, Missouri.
26 So I and we, as grass root participants,
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1 members of the clergy, and neighborhood residents who
2 historically are left behind, are not at the table when
3 it comes to planning, when it comes to what's going to
4 take place in a community, they are at the table and we
5 are in support of this merge and we have a strong leader
6 in William, Bill, Nelson, who is the president of the
7 regional, you know, chapter, branch of NationsBank.
8 So I wanted to share that with you. The
9 proof is in the pudding right here. So we're going to
10 turn this in.
11 MS. SMITH: Thank you.
12 MS. CONEY: Good afternoon. Thank you for
13 allowing me to come today. My name is Chloe Coney, and
14 I'm President and CEO of Corporation Development
15 Communities of Tampa, Choice CDC of Tampa.
16 CDC of Tampa is a community-based
17 development corporation located the second highest
18 poverty area, only second the Liberty City in Miami. My
19 neighborhood, East Tampa, which is College Hill, Bellman
20 and Jackson Height has been known in the past for
21 highest decay and disinvestment.
22 Nine years ago, Alex Sinc, President of
23 NationsBank, Florida, adopted our blighted, distressed
24 neighborhood, East Tampa. NationsBank pledged their
25 support by working with our Mayor's Challenge Fund
26 Housing providing loans to low-income families.
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1 NationsBank branch office is located in
2 our community and provides excellent service to the
3 residents. The six years of CDC Tampa, Inc. existence,
4 NationsBank has been a strong partner.
5 NationsBank has provided leadership to our
6 community through their staff with countless hours of
7 volunteering. Joe Vickersian, Mary Ellen Camilla serves
8 on my board, and, now, Mary Beth Stoltz, who is with
9 NationsBank CDC.
10 One of NationsBank employee won the
11 community service award and donated our CDC as a
12 nonprofit.
13 Our community-building project, the NEMY
14 [phonetic] community building brick by brick is located
15 in the worst of the worst neighborhood, the drug
16 affected neighborhood. You all know what I'm talking
17 about in the inner city.
18 We are rehabing old laundromat, rehabing
19 old bar, and we're going to do an indoor-outdoor food
20 market. NationsBank stepped to the plate and made a
21 financial contribution.
22 Many of the banks did not want to take
23 that kind of risk. So, again, I'm excited about
24 partnering with NationsBank CDC to build the first, the
25 very first, multi-family housing, a $2 million project,
26 in East Tampa in over 30 years.
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1 We're also looking forward to building new
2 single-family housing in our blighted, distressed area.
3 Tampa, Florida, East Tampa neighborhoods
4 is like Atlanta, Georgia, Summerhill and the black
5 historic district. We want to continue to work with
6 NationsBank CDC to rebuild and create a strong, safe
7 prosperous, wealth building community.
8 As with the merge of Barnett Bank in
9 Florida, I challenge nonprofit organizations located in
10 blighted, distressed neighborhoods to sit at the table
11 to represent your neighborhood.
12 Again, NationsBank has been there for our
13 poor inner city neighborhoods. I do recommend the
14 merger and I will be sitting at the table. Thank you.
15 MS. SMITH: Thank you.
16 MR. PRICE: Thank you. Good afternoon, my
17 name is Hugh Price. I am President of the National
18 Urban League headquartered in New York City. We were
19 founded in the 1950s to assist African Americans who
20 were making the transition to rural cities. Today our
21 goal is to help African Americans and other people with
22 color to become self-reliant and equal citizens under
23 the law.
24 Through our economic self-sufficiency
25 agenda, the Urban League developed partnerships with
26 national institutions like NationsBank. As a result of
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1 these relationships, the Urban League is in a key
2 position to discuss recommendation of performance and
3 commitment in serving color.
4 We support the merger of NationsBank and
5 Bank of America because we have a long history in
6 partnership with NationsBank. Through this partnership
7 we have seen NationsBank commit to ensuring that African
8 Americans and others of color have access to credit and
9 communities that are highly available.
10 I'd like to highlight the record of
11 NationsBank's performance first. President of Community
12 Initiatives, Cathy Bessant, testified before Congress,
13 Senator DeMoto, along with community groups on the
14 strength in maintaining the Community Reinvestment Act.
15 It was unique to find a lending
16 institution willing to sit on the same panel with
17 controversy groups and offer support and testimony on
18 behalf of CRA. This act is a commitment to extending
19 credit to those who have been traditionally neglected.
20 Second, NationsBank commitment to the
21 prevention and eradication of differential treatment at
22 the branch level. Through its mystery-shopping
23 initiative, NationsBank conducts self-testing at the
24 branch level to detect patterns of differential
25 treatment by its own employees. We think that
26 NationsBank's interest in policing itself demonstrates
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1 foresight, and that is another reason why we support its
2 application to merge.
3 Third, the bank has made a commitment to
4 lend $10 billion over the next ten years to underserved
5 communities. Within a four-year period NationsBank has
6 not only met its commitment but exceeded it by providing
7 $13 billion to communities. We are confident the bank
8 will exceed its $350 billion commitment to underserved
9 communities.
10 Fourth, NationsBank pledged to provide $25
11 million to community development financial institutions,
12 through its own CDFI fund. Again, NationsBank showed
13 courage and commitment when it announced the
14 establishment of its CDFI fund on the same day that
15 President Clinton signed the federal CDFI fund law. It
16 was NationsBank's view that their fund would complement
17 the Federal Government's effort to finance CDFIs. We
18 view their announcement of $25 million CDFI fund as
19 another sign of its commitment to increasing access to
20 credit for traditionally underserved communities.
21 Fifth, NationsBank held BluePrint 2000.
22 This was a convening of nearly 500 community leaders
23 from 111 urban and rural communities across the country.
24 The event marked a -- served as a retreat and think tank
25 for community groups to seriously ponder the viability
26 of their neighborhoods.
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1 Finally, let me add that NationsBank has
2 been very aggressive in advancing African American
3 executives up the ladder into positions of
4 profit-and-loss responsibility for major business units.
5 Its impressive track record could be and should be
6 emulated by other financial institutions.
7 We strongly support the continuation and
8 extension of the Community Reinvestment Act. We think
9 there is much more work to be done in this country on
10 rebuilding low-income neighborhoods and the commitments
11 must be strong and firm and must be even bigger than
12 ever before.
13 We look forward to seeing the lightened
14 philosophy of NationsBank extent throughout the entire
15 footprint of the new bank. We believe that the new bank
16 offers the opportunity for unprecedented economic growth
17 in communities that we serve and as a result the new
18 bank will create new venues for venture capital, will
19 enhance the level of mortgage credit to low-income
20 communities and will help revitalize economically
21 distressed neighborhoods.
22 Again, we support the proposed merger.
23 Thank you.
24 MS. SMITH: Thank you.
25 MR. PEDRON: Good afternoon, and thank you
26 for the opportunity to present testimony before you
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1 today. My name is Eduardo Pedron. I'm the president of
2 Miami Dade Community College in Miami, Dade County,
3 Florida, serving 127,000 students.
4 I'm here today, though, to present my
5 community perspective on this issue. I most agree that
6 when mergers of this magnitude take place none of
7 society in concern develop in the various communities
8 throughout the nation. Such was the case when
9 NationsBank acquired Barnett Bank, Florida's largest
10 bank. The level of inciting our community was very high
11 and I have to confess that I myself had serious concerns
12 about it.
13 However, I think the record of NationsBank
14 during this acquisition, this merger, is one that has
15 encouraged me to support the merger with BankAmerica,
16 because I really feel that their track record has been
17 exemplary.
18 I want to be very brief and mention three
19 or four examples that I think are very indicative of the
20 level of sensitivity that NationsBank has shown in this
21 regard.
22 First of all, I have seen during that
23 merger for them to go through significant effort to fold
24 the local management into the new organization, with a
25 special attention to minority members. Both Hispanic
26 African Americans and others. This has provided for a
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1 significant degree of continuity and something the
2 community has applauded.
3 The other aspect, which I think has been
4 significant, is the involvement in civic and community
5 affairs with a special reference to inner city issues
6 and education issues.
7 Not only has NationsBank respected
8 previous programs that were supported by the -- by
9 Barnett Bank, but, frankly, we have seen that
10 participation heightened and efforts such as Take Stock
11 in Children, which is a program throughout Florida to
12 provide and guarantee poor children the opportunity for
13 a college education, has been enhanced, and I could go
14 on and on with many many initiatives that we have seen.
15 Also something that is very indicative of
16 that sensitivity is the fact that they have incorporated
17 many of the former members of Barnett adviser, local
18 advisory boards into their advisory boards, and
19 especially minority members. And I think if the Miami
20 experience is indicative of what has happened in the
21 rest of the country, we have seen most of the former
22 members of the advisory board of Barnett Bank been
23 applauding to the NationsBank advisory board. And they
24 have gone beyond that to seek and make sure that they
25 have the support and the advice of members of the
26 community which is something that you rarely see in
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1 terms of banking institutions.
2 Finally, I'd like to mention that the --
3 we have seen with great enthusiasm the fact that
4 NationsBank has taken the necessary step to strengthen
5 national strategic partnerships with national
6 organizations like the NAACP and the council of La Raza,
7 the Urban League and many others. So I feel this is a
8 good sign.
9 For a state such as Florida, and there are
10 other states, which Bank of America has not had a
11 significant presence, this is something that our
12 community is welcoming, in my opinion, because you take
13 a state like Florida with a very strong and growing
14 business activity in the whole area of international
15 trade and finance and with Bank of America
16 well-established presence throughout the world, we feel
17 that this will be to the benefit of our economy and to
18 the benefit of businesses that are involved in
19 international trade and finance.
20 So I'm here very gladly to support this
21 merger and pleased to do so at this time. Thank you.
22 MS. ROBERTSON: My name is Ellen Robertson
23 and I'm from Richmond, Virginia. and I'm the Executive
24 Director of HP Wrap which is a nonprofit community
25 development organization. I'm also a partner with
26 NationsBank in the development of a target neighborhood
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1 development program in the community by the name of
2 Highland Park.
3 I'm honored to be here and to participate
4 in this public hearing on behalf of NationsBank and to
5 also have this great opportunity to express our thanks
6 for the services that NationsBank has provided in the
7 development of that community.
8 We especially want to recognize bank
9 leaders Doug Crukshank, James Jackson, Marsha Woody and
10 Cindy Mimms for their outstanding leadership and
11 demonstration of their interest in community
12 reinvestment. It's because of the services that they
13 have provided that I am confident that this merger is in
14 the best interest for all parties at stake.
15 I'd like to first give you a general
16 overview of the community that I'm speaking of. It's an
17 urban community that is located in the heart of Richmond
18 that is home for about 8,000 residents, which consists
19 35 percent of very low income, 50 percent single family
20 head of household and the remaining largely blue class
21 homeowners and renters.
22 In 1989 a group of residents in which I
23 was one of formed this nonprofit HP Wrap for the purpose
24 of revitalizing the community. NationsBank at that
25 time, a sovereign bank, was the first to come to our
26 support. They have served on our board since that time
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1 and supported us to be the first organization in the
2 United States to influence HUD to provide first-time
3 grants to qualified buyers to purchase their first home.
4 Today this is a national program.
5 Since 1989 until today, nine years,
6 NationsBank support in providing home purchase training
7 has resorted in 342 new families having purchased their
8 first home in Highland Park. I'd like to thank
9 NationsBank. Highland Park has more than
10 2,000 homes, most historic two-story Victorian homes
11 with 2,000-plus square footage of space nested on large
12 lots and accessible by tree-lined streets.
13 Due to the block busting and redlining of
14 the -- in 1960 transition resorted to flight and we are
15 now living are blight. More than 300 homes are
16 abandoned in this community. NationsBank supported HP
17 Wrap purchasing and restoring one of these abandoned
18 homes to serve as the neighborhood model Victorian sales
19 center to market a historic restorated development plan.
20 NationsBank provided the funds to restore
21 the model, to serve as the center and completed the
22 furnishing. Due to this creative investment, we now
23 sell an average of 15 restored abandoned homes to
24 first-time buyers. NationsBank invests 65
25 to 75 percent of the total development cost using very
26 workable flexible terms and lines of credit for
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1 construction, property acquisition and permanent
2 mortgage financing. In addition, two new products are
3 being developed to provide existing owners equitable
4 rehab loans as well as second mortgage.
5 Again, we thank NationsBank.
6 In nine years NationsBank investment in
7 Highland Park has impacted property values increased by
8 65 to 85 percent and 448 homes have been sold to new
9 buyers and/or rehab work done on them.
10 NationsBank makes direct leveraging
11 contribution to support people, growth and development
12 specifically to support volunteerism and youth
13 development.
14 Our children are operating in neighborhood
15 school greenhouse to redesign the urban landscape for
16 public safety.
17 NationsBank has also supported directly
18 the development of programs to deal with increase crime
19 that we have in the community.
20 Because of NationsBank investment over the
21 last couple years, we have been successful in bringing
22 an additional $1.5 million in the United States Americor
23 National Volunteer Service to our community to deal with
24 crime issues.
25 Because of NationsBank leadership, we are
26 now receiving large contributions from other public and
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1 private sources, corporations and foundations. We
2 assess NationsBank contribution directly to our
3 community at a rate of 3.5 to 5 million annually.
4 To maintain the community development
5 orientation, five characteristics of NationsBank is
6 encouraged to be continued as part of this merger.
7 Number one, we ask that we keep local branches in
8 Highland Park community types. Your bank serves as
9 anchors to the neighborhood development successes.
10 Number two, we ask that you maintain the
11 sensitivity to hiring staff at all levels reflective of
12 the cultural diversity of the neighborhood population
13 served.
14 Number three, we ask that you continue to
15 be simple. Don't get big, keeping -- don't let your big
16 keep you from being small. We love people that have
17 smiling faces that are set across the table from us to
18 help work out things to make things happen in our
19 community.
20 And, number four, we ask that you maintain
21 your neighborhood target development strategy.
22 And, finally, number five, we ask that you
23 regulate bank relocation, that it does not influence or
24 contribute to urban sprawl which is the leading cause
25 for urban decline.
26 I thank you for this opportunity to speak
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1 and we strongly support the application for the merger.
2 BISHOP BATTLE: I am Bishop George Battle.
3 One of 12 Bishops of Episcopal Zion Church consisting of
4 3.5 million members worldwide.
5 I wrote a speech, but I am going to give
6 you this and speak from my heart.
7 MS. SMITH: Thank you very much.
8 BISHOP BATTLE: Number one, I've known
9 NationsBank, NC&B Bank, before they became NationsBank,
10 for 25 years. I am privileged to say this bank has
11 always been involved in the community.
12 I can recall going to Mr. McColl's office
13 as a young pastor store living in a parsonage where the
14 members felt, you know, the minister should have a good
15 house. I went in there with no money, no credit, met
16 with Mr. Mc Call and said, "I want a house." Interest
17 rate was 21 and a quarter percent. I am pleased to tell
18 you, I not only got the house at nine and a quarter
19 percent, but since that time I moved into even a bigger
20 house.
21 NationsBank, that's not necessarily
22 because of me, I know of a young man in St. Louis, just
23 several months ago who had a terrible financial problem.
24 He needed help. He called me, I called NationsBank, he
25 received in three days $6,000.
26 If you ever come to Charlotte and you hear
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1 talk of a Gethsemane Enrichment Program, a program that
2 works with the Lord's underprivileged, a social
3 development program in the community.
4 Some 500 kids in 1974 received a national
5 award from President Bush as one of the best programs of
6 its kind in the nation. You will find that NationsBank
7 have supported that program with hundreds of thousands
8 of dollars before any other corporate contributor put
9 one dime in.
10 I can recall one session with Mr. McColl
11 brought the community in, these were the most low
12 economic development persons in the community. We told
13 him that we needed housing and three of the communities
14 where we work were the poorest kids in the neighborhood.
15 Those communities have been completely
16 redeveloped by NationsBank. Oh, by the way, I'm a
17 member of First Union Bank, so you ought to know that.
18 So I have no invested interest other than telling the
19 truth.
20 If all of the banks incorporated in
21 America was successful to the culture and to the people
22 that work in high management position at NationsBank,
23 your job would be a lot easier. I am pleased the tell
24 you that just several months ago my school --
25 (interruption.)
26 I hope you all aren't going to hold that
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1 against me. Thank you, I have to start all over again.
2 Remove that.
3 In 1994 Livingston College, a small
4 historical black college 30 miles north of Charlotte,
5 was facing very, very financial difficulties. No other
6 institution would make a loan. I went to Mr. McColl, we
7 received $7 million that not only put us in terms of
8 ahead of where we were but now we are probably the only
9 small black college in America that have internet
10 capability for every student. That's a plug for
11 Livingston College.
12 In addition to that, they also made a
13 grant in helping that school in excess of -- over the
14 period of five years in excess of $350,000.
15 I can also attest to the fact that we have
16 a small junior college in South Carolina that was
17 struggling with accreditation. NationsBank came to the
18 plate and loaned the school $500,000 at the low interest
19 market rate. In addition to that, through in a hundred
20 thousand dollars to hire the consultants to make sure
21 that the school would be a credit for a minority student
22 that could not go anywhere in America because of
23 economic standards.
24 In addition to that, we could talk about
25 how they helped to completely transform Charlotte,
26 that's where I have been, and how if you ever travel
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1 down Highway 49, that's southwest of Charlotte, you will
2 see an AME Zion church that was built there on Highway
3 49 that received all kinds of architect's award. Thanks
4 to NationsBank.
5 NationsBank, along with Mr. McColl and all
6 of the persons that work for him, you can call them on a
7 moment's notice and say, "We need a meeting. We have to
8 talk about some issues we have in our community."
9 They're always at the forefront.
10 Right here in California, right here in
11 California, one of our largest churches was set on fire.
12 NationsBank, without knowing the church, without having
13 any kind of investments, gave the church a substantial
14 contribution to help it get on its feet.
15 Birds of a feather flock together,
16 NationsBank -- when I see this sign, "NationsBank go
17 home." This can be home for NationsBank and it would
18 make this community a much, much better place, because
19 anywhere NationsBank has been they have been fair, they
20 have given minorities chances, opportunities to excel
21 and exceed.
22 And I'm here today at my own expense, I
23 couldn't even catch Mr. McColl to catch a ride, I had to
24 fly my own plane, to say that I think it would be a
25 disaster not to cause these two great things to come
26 together to provide the services for entire nation.
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1 What a historical step we're taking today. I believe
2 with the smartness of this panel, I believe NationsBank
3 is going to prevail with the Bank of America and this
4 community is going to be better. Thank
5 you.
6 MS. SMITH: Any questions.
7 BISHOP BATTLE: Yes, I have my speech
8 submitted already. If you need me, just give me a
9 moment's notice and I'll be back.
10 MS. SMITH: Thank you very much.
11 We have no questions, so we thank you and
12 we'll go on to the next panel.