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Public Meeting Transcripts

Public Meeting Regarding NationsBank and BankAmerica

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
           



                                                             416

       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. 
           



                                                             417

       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
           



                                                             418

       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. 
           



                                                             419

       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. 
           
Last update: December 3, 2010