Public Meeting Regarding First Chicago and Banc One
Thursday, August 13, 1998
Transcript of Opening Remarks
1 PUBLIC MEETING REGARDING THE PROPOSAL BY
2 BANC ONE CORPORATION, COLUMBUS, OHIO,
3 TO MERGE WITH
4 FIRST CHICAGO NBD CORPORATION, CHICAGO, ILLINOIS
5
6
7 Proceedings had in the above-mentioned
8 cause, on Thursday, the 13th day of August, 1998,
9 at The Federal Reserve Bank of Chicago, 230 South
10 LaSalle Street, Chicago, Illinois at 9:00 o'clock
11 a.m.
12
13
14
15
16
17
18
19
20 REPORTED BY: Brenda S. Tannehill, CSR
21 LICENSE NO.: 084-003336
22 - and -
23 REPORTED BY: Jeanette A. Sandei, CSR
24 LICENSE NO.: 084-003685
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McCORKLE COURT REPORTERS, INC.
CHICAGO, ILLINOIS - (312) 263-0052
1 MS. SMITH: I think we can get started. Let me
2 start by welcoming you to this important public
3 meeting on the application of Banc One Corporation
4 to merge with First Chicago NBD Corporation.
5 And I'll start by introducing myself. I'm
6 Dolores Smith, the director of the division of the
7 Consumer and Community Affairs for the Reserve
8 Board in Washington, D.C. I'm also the presiding
9 officer for this public meeting.
10 Our other panelists are Scott Alvarez,
11 who is the Associate General Counsel for the
12 Federal Reserve Board, and Alicia Williams, who is
13 Vice President and Community Affairs Officer from
14 the Federal Reserve Bank of Chicago.
15 We are here today because Banc One
16 Corporation, Columbus, Ohio, has applied for
17 approval to merge with First Chicago NBD
18 Corporation, Chicago, Illinois.
19 When the Federal Reserve Board considers
20 one of these applications, we look at a number of
21 factors under the Bank Holding Company Act. These
22 include financial issues, managerial issues,
23 competitive issues and the convenience and needs of
24 the communities affected.
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McCORKLE COURT REPORTERS, INC.
CHICAGO, ILLINOIS - (312) 263-0052
1 In doing so, we particularly look at the
2 record of performance of the parties under the
3 Community Reinvestment Act.
4 The CRA requires the Board to take into
5 account an institution's record of meeting the
6 credit needs of its entire community.
7 The Banc One application transaction also
8 involves the proposed acquisition or retention of
9 non-banking companies engaged in activities that
10 are permissible for bank holding companies.
11 The Board must determine whether the
12 proposed non-banking activities can reasonably be
13 expected to produce benefits to the public that
14 outweigh possible adverse effects such as undue
15 concentration of resources, decreased or unfair
16 competition, conflicts of interest or unsound
17 banking practices.
18 The purpose of the public meeting today is
19 to receive information regarding these factors. We
20 will be seeking to elicit this information and to
21 clarify factual issues related to the application.
22 We are very pleased that so many people
23 have been willing to come and testify at this
24 public meeting. We will have more than 90 groups
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McCORKLE COURT REPORTERS, INC.
CHICAGO, ILLINOIS - (312) 263-0052
1 and individuals represented over the course of the
2 day.
3 Let me tell you a little bit about the
4 procedures that we'll be following. First, this is
5 what we call an informal public meeting. Members
6 of this panel may ask those who are testifying
7 about their testimony.
8 This is not a formal administrative
9 hearing, so we are not bound by rules regarding
10 evidence, cross-examinations and some of the formal
11 trappings that accompany that type of proceeding.
12 As you can see from the agenda that you
13 have picked up, we do need to stick to the schedule
14 very carefully so that everyone who has asked to
15 offer oral testimony will have the chance to say
16 what they would like to say.
17 We are going to ask the witnesses today to
18 be mindful of the needs of others and to help us
19 stay on schedule. The panels and panelists will be
20 expected to keep within their allotted times.
21 And we do have a system for reminding
22 people about their time. We have two
23 time-keepers. They're up front. They will give a
24 signal when the presenter has one minute left to
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McCORKLE COURT REPORTERS, INC.
CHICAGO, ILLINOIS - (312) 263-0052
1 speak. We'll hold up a sign. And then we have
2 another sign when the time has expired.
3 And then if that doesn't work, we have --
4 we go to audio and we have a little bell. We don't
5 have a hook, so you have those opportunities.
6 Now, we have accommodated everyone who
7 made a timely request to present testimony, but
8 there may be some individuals who were unable to
9 sign up in advance. And to the extent possible, we
10 do want to give them a chance to speak as well.
11 So at the end of the meeting this
12 afternoon when all of the panelists who have been
13 listed have offered their testimony, we will make
14 the microphone available to anyone who would like
15 to make a presentation, time permitting.
16 Witnesses may submit a written supplement
17 to their oral testimony and have until next
18 Thursday, August the 20th, to do so, and then the
19 record will be closed.
20 Any written supplements should be directed
21 to Jennifer J. Johnson, Secretary of the Board,
22 Board of Governors of the Federal Reserve System,
23 Washington, D.C. 20551. They must be received
24 by 5:00 p.m. Eastern Daylight Time on Thursday,
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McCORKLE COURT REPORTERS, INC.
CHICAGO, ILLINOIS - (312) 263-0052
1 the 20th. Submissions may be faxed to area code
2 (202) 452-3462.
3 Also, for witnesses who have not already
4 turned in copies of written testimony or if there
5 are any other written statements to put into the
6 record, we're asking you to leave them with Federal
7 Reserve Bank staff at the registration table.
8 It's important that we get this
9 information and material for the record. A
10 transcript of the meeting will be available by
11 August the 18th through the Federal Reserve Bank of
12 Chicago and also from the Board.
13 In addition, the official transcript will
14 be available by close of business on August 19th on
15 the Board's public web site, which is at
16 www.bog.frb.fed.us.
17 And with that, I think we're ready to
18 begin with our proceedings. We will start first
19 with the applicant panel.
20 We have Mr. Istock from First Chicago and
21 Mr. McCoy from Banc One. And they have with them
22 Ms. Decker and Ms. Williams, so if you will --
23 Ms. Johnson. I'm sorry. I'm so sorry.
24 If we can -- Mr. Istock, are you going
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McCORKLE COURT REPORTERS, INC.
CHICAGO, ILLINOIS - (312) 263-0052
1 first?