skip to main navigation skip to secondary navigation skip to content
Board of Governors of the Federal Reserve System
skip to content

Public Meeting Transcripts

Public Meeting Regarding NationsBank and BankAmerica

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
 
 
 
 
                                                            1
                         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.
 
 
 
 
                                                            2
                         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
 
 
 
 
                                                            3
                         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
 
 
 
 
                                                            4
                         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,
 
 
 
 
                                                            5
                         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
 
 
 
 
                                                            6
                         McCORKLE COURT REPORTERS, INC.
                       CHICAGO, ILLINOIS - (312) 263-0052
  
 
 
 
          1   first?
Last update: December 3, 2010