Public Meeting Regarding NationsBank and BankAmerica - Opening Remarks
Friday, July 10, 1998
Transcript of Opening Remarks
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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
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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.
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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
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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.
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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.