Good afternoon, My name is Rafael Sanchez and I am on the Board of Directors USHCC and a small business owner.

The United States Hispanic Chamber of Commerce (USHCC) is the leading in the U.S., advocating the interest of over one and over 250 Hispanic chambers of of the

Hispanic business association commerce.

million Hispanic owned businesses

We’ have very serious concerns with the proposed communities. businesses scrutinized. Past experience institutions has demonstrated that mergers Its is our belief that

Bank of America/Nations businesses and of is the life-blood

Bank merger and the impact it may have with our respective access to capital and that any changes to its availability

must be closely


large financial

have resulted

in the following:


Fewer loans to minorities. The elimination Vendor contract A decline A reduction including of employment bundling. service support to community of commerce. Institute, the following that in 1997): based organizations, positions




in customer in financial


local Hispanic chambers


is distressing

to learn from the Greenlining to BofA/Nations


in regards

(it is estimated


1% of all contracts Asians Americans. 1% or less, of total African American,

were awarded

to African


Latinos, or


dollar volume of all business Latinos, or Asian Americans.

loans were made to


Less than + of 1% of pre-tax Americans,

earnings were contributed non profits.

to African

Latino, or Asian American


Less than 3% of the total

dollar volume of conventional

home loans were

made to African

Americans. (by salary) are African


Less than 2% of the top 100 management American, Latino, or Asian American. Bank has announced a $350 have refused (according

While Nations pledge, they establish

billion community

reinvestment to evidenced by

to the Greenlining mediocre



goals making the pledge unmeasurable statistics. deliberation given the extraordinary in 22 states, and would control

and unenforceable.

This is cause for grave concern given their the above mentioned We would urge careful services nation. largely


size of the in the

merged banks which would now operate to 29 million households, We are concerned that

provide banking 8% of all deposits

this merger may be allowed to proceed while and women owned

ignoring the rapidly growing number of minority

businesses. Thank you








(410) 358-8900

WEISI MFUME President 8 Chief ExecufrVe Officer

JULIAN BOND Chair Board ol Direcrors







JULY 9, 1998

Presiding presenting

officer, members of the panel, my name is Tammy Hawley, and I am for the Advancement of Colored People Kweisi

on behalf of the National Association

(NAACP) and our national president and chief executive Mfume. The NAACP appreciates the opportunity

officer, the honorable

to present here today for the public Corporation by NationsBank with

record regarding Corporation. NationsBank.

the proposed acquisition is primarily

of BankAmerica

Our testimony

as it relates to our existing relationship

The NAACP, history of focusing sufficiency

an organization

which was founded

in 1909, has a long-standing development, and self-

on civil rights, economic

and community groups.

for African Americans

and other minority

With over 1700 units

serving communities remains congruent years assumed community

across this country and abroad, the present mission of the NAACP with its founding principles; aggressive however the organization approach to achieving has in recent individual and

a more proactive,


Many of the communities


serves face critical social and economic growth, and lack of employment and

problems arising in part from the lack of economic other opportunities.

The evidence has been clear for years that credit is just not available in America. That means that the ability

on an equal basis to all people in all communities

to take part in the American open to all Americans.

dream, to participate

in the economic


is not

The NAACP has worked to level the economic economic parity for minority group citizens.

playing field and to bring about

It has launched efforts like the Fair Share and investment activity, and the Economic economic clout. The NAACP has also

Program, which reviews corporate opportunity Reciprocity established

Initiative, which leverages collective Community Development Resource

Centers (CDRC), which target specific The Community economic Development Resource resources,

focal areas and concerns in local communities. Center operation seeks to expand on building housing,

capacity, leveraging lending, economic outreach.

and pooling capital for affordable public and private partnerships



and business development





Centers were established


1994, as a pilot project, through a par-tnership with NationsBank.

The purpose of these

centers is to help promote an effective delivery system of credit programs and services by increasing community awareness of available products and services and undertaking with Act

“grass roots” community NationsBank, performance,

needs assessment. considered

Before entering into such a partnership Community Reinvestment


factors including

corporate programs and policies. as well as lending and outreach efforts.

Since 1994, NationsBank promoting economic revitalization

has made a tremendous and community


and advanced

in in


through investment


the CDRC operation and its efforts. more than $90 million in loans

Through the NAACP partnership with NationsBank, have been closed in communities traditionally

underserved six operating

by financial institutions. centers primarily development

Services now being provided through the existing on consumer and business assistance education and





and technical

in the areas of

needs assessment,

product development,


lending practices, strategic planning

and product and service delivery.


proposed acquisition of Bat&America

Corporation by NationsBank


the NAACP is positioning

itself as a resource to ensure that certain goals are goes forward. We are

met and matters not overlooked,

if a merger of the two institutions

very concerned about consumer protection, competition

and economic expansion.


and effective mergers are to lower costs, improve product quality or The proposed new bank’ commitment s to $350 billion in of

otherwise achieve efficiencies. community an expected represents financial challenge development enhanced the largest institution.

lending and investment delivery of services

over the next ten years is indication from the merger.


$350 billion by a to



commitment for organizations

ever announced

fhis is an opportunity

like the NAACP

this bank to bank and an opportunity

for the new bank to live up to a bank’ s

chartered role as an economic leader in communities.


The restoration will require

and maintenance development

of the economies strategies,

of underserved supportive

communities services, and



increased access to equity investments billion commitment, It is our understanding to be undertaken communities opportunity with appropriate

and loans for development follow-through,


The $350

promises to address these matters.

that the NAACP will continue to be a viable partner in the efforts benefit to the

by the new bank. This will help to assure representative If a merger is successful,

the NAACP serves.

the NAACP will realize an

for the CDRC operation to grow and expand into other markets as well. The

expansion of the .CDRC operation will allow for our one-stop approach to technical . assistance, real estate and business development services and consumer counseling to reach additional delivery system communities of NAACP across the country. units throughout Furthermore, the country the already e.<isting provide a ready-made for the new bank


to ensure an ability for immediate

reach into communities

to begin to perform on the community it has made.


lending and investment commitment

The community



also designates

$180 billion of the

$350 billion for the purpose of small business lending. that small business development development

The NAACP support the notion of state or local economic

is crucial to the success


We are also looking for assurances that benefit will accrue tc’the One concept the NAACP is promoting which \\-e have launched is the expansion of in sm:!ller tenants

minority business community. small business markets. incubator



A small business


is a facility that offers small business


affordable services.

rent, shared office services, and access to responsive Incubators are based on a concept of economic




which targets

small business development a community’ s employment

as the primary method of creating new jobs and diversifying base. The incubator approach helps to avoid the common poor marketing, poor management

pitfalls faced by emerging small businesses-namely and lack of capital. entrepreneurial commercialization lending goals.

The NAACP incubator projects will provide a more positive local neighborhood revitalization, technological innovation, and


of new projects and would help the new bank meet its small business

Also, the NAACP itself has been pursuing Institution (CDFI) status for its CDRC operation.



Financial the


has supported

NAACP in this pursuit. the NAACP financial

Once CDFI status is approved by the Department

of Treasury,

will become a more direct resource reach economic development

in helping the new bank and other goals through the use of financial



Finally interested directors.


the new bank’ s




is keenly board of

in diversity goals regarding

senior management

and the governing

If the mergers is approved and as the proposed new bank solidifies its diversity and policies. the NAACP will continue to be a resource and to monitor inter-nal structure evolvement.

goals, objectives

the financial institution’ s


The NAACP believes that the proposed acquisition benefit access to credit and capital. Enhanced partnerships

and merging of resources with organizations


like the

NAACP, ACORN Housing Corporation, League and the National are concerned. Council

the Enterprise Foundation, readily

the National Urban where

of La Raza, more

assure success


If this merger does go forward, the NAACP will do its part are channeled appropriately nationwide. and to expand on our existing

to ensure that resources

partnership to the benefit of communities

Again, thank you for the opportunity .

to appear before you today.

July 9, 1998

Testimony of Johnny J. Mack, President and Chief Executive Officer of the National Institute for Community Empower& Inc. to the Federal Reserve Bank of San Francisco in favor of the proposed merger of NationsBank Corporation, Charlotte, North Carolina and BankAmerica Corporation, San Francisco, California

As president of the National Institute for Community


Inc., I am

pleased to testify today in favor of the proposal by NationsBank Charlotte, Francisco. North Carolina, to merge with Bar&America California.

Corporation, San


For over seven years, I have had the pleasure to work with NationsBank in connection with community development activities.


My first occasion was as a Social Change,

senior official of the Martin Luther King, Jr. Center for Nonviolent Inc. In 1990, The King Center established the Community Initiative, a program to assist low wealth communities assets, jobs and overall community wealth. assisted communities nonviolent


in building social capital,

Over a six-year period this program and principles of

across the country using the philosophy

social change as espoused by Dr. Martin Luther King, Jr.

Funding for the program was provided in large measure from Federal special purpose grants and contracts administered and Urban Development. by the U.S. Department of Housing provided funding in

In addition, several corporations

support of its programs; most significant among them is NationsBank. its financial support, NationsBank committee composed was represented

Along with

on a national advisory public and private sectors. representative was a

of leaders from the community,

Further demonstrating

their commitment, the NationsBank

senior level official in the person of Ms. Cathy Bessant, President of NationsBank Community Investment unit. Working with other national leaders, Ms. Bessant From its very beginning, provided these

gave valuable counsel and direction to the program. through the end of the program, NationsBank resources; particularly


during times when the need was most critical.

My second occasion to work with NationsBank


followed the first. In Initiative

July 1997, The King Center launched the Community program as a separate independent for Community Empowerment,


nonprofit organization,

the National Institute

Inc. (N.I.C.E.).

During this time, I served as the

Chief Administrative

Officer of The King Center and had the pleasure of working senior vice president. Ms. Tassan gave

with Ms. Vickie Tassan, a NationsBank considerable

attention as an advisory committee member, and through financial in creating the new organization. Consistent

support provided by NationsBank, with the standard

set by Ms. Bessant, under the Community

Empowerment on the N.I.C.E.

Initiative program, NationsBank

is giving senior level participation

board of trustees as well as funding critical to its operations. NationsBank is taking the lead among corporate sponsors.

And, once again, Ms. Tassan now


serves on the N.I.C.E. board of trustees

She not only gives valuable counsel,

she has recruited other national leaders to serve as well.

The importance articulated

of the relationship N.I.C.E. and NationsBank

have established


in the following quote of Dr. Martin Luther King, Jr.: “ evokes happy It

memories to recall that our victories in the past decades were won with a broad coalition of organizations representing a wide variety of interests. But we

deceive ourselves if we envision the same combination changes in this society. reassemble for it.”

attacking structural

It did not come together for such a program and will not

This quote is taken from Dr. King’ 1967 book, Where do we go from here: s Chaos or Community? In contemplating a general plan for the future, Dr. King and new strategies to overcome He saw

realized that a different coalition of organizations the seemingly

intractable barriers of urban centers would be necessary.

that new coalitions and strategies must augment the alliances of the civil rights movement.

Since his assassination, organizations

new forms of community-based

and community-serving have

have emerged.

Until recently, however, these organizations

either dabbled at the fringes or are completely unaware of the power that the philosophy and principles of nonviolent social change bring to the field of





Yet, the gravity of its importance

has not escaped the

careful attention of NationsBank.

As the organization


by Mrs. Coretta Scott King, and launched by the Inc., to carry on the

Martin Luther King Center for Nonviolent Social Change, work of community Empowerment, empowerment,

the National Institute for Community that

Inc. is pleased to share in an alliance with NationsBank

uniquely positions us to represent the coalition presaged in Dr. King’ quote. s


on the launch of N.I.C.E., Dexter Scott King, Chairman and CEO of N.I.C.E. is the natural progression for a

The King Center said, “ Establishing

program started more than six years ago under the leadership of my mother. The spirit of its mission is kindred with our struggle for decades to bring about nonviolent social change. I am confident that as a separate and independent

nonprofit organization,

N.I.C.E. will continue the good and important work begun and restore community

by The King Center to help create self-empowerment across the country.”

NationsBank community

has demonstrated, empowerment,

by example, their commitment partnerships,

to the work of that Dr. King, Mrs.

through public/private

King, and, now, their son Dexter, have dedicated their lives to.

I believe this proposed merger could only strengthen community Corporation development empowerment. NationsBank Corporation


the work of

and Bar&America to community by

have consistently


their commitment activities.

by their community reinvestment

This is demonstrated investment

the recent announcement commitment.

of their $350 billion community

While I have not, yet, worked closely with community Corporation,


officials of the Bar&America community investment

have followed closely their by their efforts to

activities, and have been impressed markets.

meet the needsof


I believe NationsBank


and Bank/America Corporation geographic

are the

industry leaders in this field. Their complimentary

service areas

provide a national scope and services in a manner that as a whole is greater than the sum of its parts. bring an exceptional I conclude, therefore, that the two banks combined would commitment to lending, investment and service and I urge

you to support the proposal.

Thank you.

Johnny J. Mack