. 

SAN FRANCISCO 

CHAMBER OF COMMERCE 

Federal Reserve Hearing 

Testimony Regarding 

BankAmericalNationsBank 

Presented by 

G. Rhea Serpan, President & CEO 

San Francisco Chamber of Commerce 

Friday, July 10, 1998 

My name is Rhea Serpan and I am the President & CEO of the San Francisco Chamber 

of Commerce. I appreciate this opportunity to speak on behalf of the Chamber in 

regards to the proposed merger of BankAmerica with NationsBank. 

Since its founding in the city in 1904, BankAmerica has been integral to the 

development of San Francisco’s business community. The bank has been a longstanding member of the Chamber of Commerce. Mr. A. P. Giannini served on our 

board of directors, and that representation continues today. BankAmerica has 

generously supported the Chamber’s many activities, including providing resources to 

business development programs and contributing both expertise and funding 

l SF Works: BankAmerica has contributed $250,000 over three years to SF 

Works, the welfare-to-work initiative created by the Chamber, Committee on 

Jobs and United Way 

l San Francisco Partnership: BankAmerica has been generous in 

contributing to economic development projects, including a multi-year 

investment in the San Francisco Partnership, a public-private partnership 
2 

launched by the Chamber to attract and retain business and jobs in San 

Francisco. 

. BASHOF, Business Arts Council and LSF: Bar&America has been a 

strong supporter and contributor to the BASHOF Youth Fund, Business Arts 

Council, Business Volunteers for the Arts and Leadership San Francisco. 

Throughout its history BankAmerica has been an involved and responsible 

corporate participant in the San Francisco community. 

l Small Business Investment: BankAmerica recognizes that small 

businesses are the job-creation engine of our economy, and has made a 

substantial investment in San Francisco-area firms. Currently, BankAmerica 

has small business loan commitments in the Bay Area that total $708 million. 

(Counties include Alameda, Contra Costa, Marin, San Francisco, San Mateo 

and Santa Clara.) 

. Affordable Housing: Since 1990, the bank has loaned $235.5 million to 

support construction of 4,500 affordable housing units in the region. 

. Charitable Giving: BankAmerica has contributed $14 million in the past 

three years to the arts, education and health and human services, including 

$5 million in support of the United Way of the Bay Area. 

The Chamber fully expects BankAmerica to continue to play an important 

leadership role in our community. We believe that as their business grows, and it will, 

their corporate involvement will expand. 

Bar&America’s merger with NationsBank, along with the announced merger of 

Wells Fargo Bank with Northwest Bank, will reaffirm San Francisco as a national and 

global banking center. BankAmerica is expected to fully participate in our region’s 

growth and to benefit from the strategic advantages of doing business in San Francisco. 
-. 

San Francisco is the center of a strong and growing Bay Area economy. It is the 

gateway to the Asian marketplace and the place where Silicon Valley does its banking. 

While there will undoubtedly be some job dislocation, new job opportunities will 

be created as a result of this merger. It is, of course, too early to estimate with any 

accuracy what the net effect might be on jobs, but the combined strengths of the two 

banks creates the potential for job growth that may not have been otherwise possible. It 

is significant that the combined bank’s corporate and investment banking headquarters 

will be in San Francisco. 

The Chamber is proud of the strengths of our community and confident in the 

continued growth of our economy. We strongly believe BankAmerica will continue to be 

a major contributor to both. 

# # # 
July 10, 1998 

TESTIMONY OF SANDRA L. FERNIZA, PRESIDENT & CEO, ARIZONA HISPANIC CHAMBER OF COMMERCE 

To: Federal Reserve Bank of San Francisco 

Att”: Joy Hoffman” Molloy, Community Affairs Oft&r 

Ladies and Gentleme& The Arizona Hispanic Chamber of Commerce is pleased to have the opportunity to testify on behalfof the 

proposed Bank of AnxricaINationsBank merger. In a” em of decreasing public assistance to individuals of low and moderate income 

and small, women or minority owned businesses, banks. with the encouragement of the Community Reinvestment Act and the 

conscience of its board members, are a major source of hope to those who dream of home or small business owwship. Institutions 

such as Bank of America have been a source, both directly and indirectly, of credit and capital to those who lack access to 

conventional financial services through innovative products and community partnerships. The current industry trend of bank 

consolidation poses serious questions for those of us who work with financial institutions in a” effort to encourage investment, 

leveraging financing and creation or preservation of jobs in less affluent communities. However, OUT experience with Bank of 

Anwica has led us to conclude that the proposed merger will result in a contimution and/or expansion of the bank’s commitment to 

sewing poor and diverse communities. 

Bank of America has been a” active member and strong corporate partner of the Arizona Hispanic Chanlber of Commerce since 1980. 

In addition, it was a founding member of the Los Amigos de AHCC, a corporate advisory group that provides both financial and 

business value to the AHCC and its small business members. Bank of Plmerica’s recognition, understanding and commitment to the 

growing Hispanic market is borne out in two key areas for AHCC: I) DATOS, Focus on Arizona’s Hispanic Market, a” annual 

publication and presentation of AHCC, with the Ba”k as prwnier sponsor; and 2) Minority Business Development, the Bank has 

committed both financial and technical assistance to the mission of our Greater Phoenix Minority Business Development Center. 

Also, a member of the bank staff serves on our Board of Directors a”d its bank officers and statT regularly participate in AHCC 

business seminars, host networking mixers to highlight procurement opporhmities and scwz as speakers in OUT business education 

series: NxLevel and Su Plan de Negocio. 

Bank of America has also demonstrated a comtitment to diversity in the boardroom, at all levels of management and in a unique 

bilingual customer service, CuentaTel. Through partnerships with organizations like others and ours, it supports training to 

consumers, business owners and others who play a promising and important role in developing the social and economic fabric of 

America. Most in~ponantly to AHCC, the merger presents new oppommities for the local business community A nationwide network 

that has greater access to global financial markets is consistent with the growing presence of mutual customers seeking to retain and 

expand their business success. It also presents greater east of service for individual consumers whose mobility is a vltal patt of a” 

expanding economy. 

AHCC expects the activities previously mentioned to continue after the merger of the hvo i”stih3ions. I want to reiterate that based 

on experience. we feel confident that the bank will not only continue its outstanding community service but also seek new ways to 

efficiently and effectively serve the needs of a diverse customer base, both large and small. 

Personally, my husband and I have been Bank of America custonlers since it assumed responsibility for the former Western Savings & 

Loan Association/Security Pacific institutions. That transition convinced nle that it is possible to sun-ive and thrive from change at 

Bank of Anwica while maintaining a high level of customer service. 

l-hank you. 

2400 North Central Avenue, Suite 303 s Phoenix, Arizona 85004 l (602) 252-l 101 l Fax (6021 252-6110 
I 

ARIZONA 

HISPANIC 

CHAXfHER OF COMWKCE 

July 10, 1998 

TESTIMONY OF SANDRA L. FERNIZA, PRESIDENT & CEO, ARIZONA HISPANIC CHAMBER OF COMMERCE 

To: Federal Reserve Bank of San Francisco 

Attn: Joy Hoffmann Molloy, Community Affairs Ofticer 

Ladies and Gentlemen The Arizona Hispanic Chamtxr of Commerce is pleased to have the opportunity to testify on behalfof the 

proposed Bank of Ama-ica!NationsBank merger. In an em of decreasing public assistance to individuals of low and moderate income 

and small, women or minority owned businesses, banks, with the encouragement of the Community Reinvestment Act and the 

conscience of its board members, are a major source of hope to those who dream of home or small business ownership. Institutions 

such as Bank of America have been a source, both directly and indirectly, of credit and capital to those who lack access to 

conventional financial services through innovative products and community partnerships. The current industry trend of bank 

consolidation poses serious questions for those of us who work witi financial institutions in an effort to encourage investment, 

leveraging financing and creation or preservation ofjobs in less affluent communities. However, our experience with Bank of 

America has led us to conclude that the proposed merger will result in a contiouation and/or expansion of the bank’s commitment to 

serving poor and diverse communities. 

Bank of America has been an active member and strong corporate partner of the Ariiona Hispanic Chamber of Commerce since 1980, 

In addition, it was a founding member of the LosAmigos de AHCC, a corporate advisory group that provides both financial and 

business value lo the AHCC and its small business members. Bank of America’s recognition, understanding and commitment lo the 

growing Hispanic market is borne out in two key areas for AHCC: 1) DATOS, Focus on Arizona’s Hispanic Market, an annual 

publication and presentation of AHCC, with the Bank as premier sponsor: and 2) Minority Business Development, the Bank has 

committed both financial and technical assistance 10 the mission of our Greater Phoenix Minority Business Development Center. 

Also, a member of the bank staff serves on OUT Board of Directors and its bank officers and staff regularly panicipate in AHCC 

business seminars, host networking mixers to highlight procurement opportunities and serve as speakers in OUT business education 

series: NxLevel and Su Plan de Negocio. 

Bank of America has also demonstrated a commitment to diversity in the boardroom, at all levels of management and in a unique 

bilingual customer service, CuentaTel. Through partnerships with organizations like others and ours, it supports training to 

consumers. business owners and others who play a promising and important role in developing the social and economic fabric of 

America. Most importantly to AHCC, the merger presents new opportunities for the local business community. A nationwide network 

that has greater access lo global financial markets is consistent with the growing presence of mutual customers seeking to retain and 

expand their business success. It also presents greater ease of service for individual consumers whose mobility is a vital part of an 

expanding economy. 

AHCC expects the activities previously mentioned to continue after the merger of the two institutions. I want to reiterate that based 

on experience. we feel confident that the bank will not only continue its outstanding community service but also seek new ways to 

efficiently and effectively serve the needs of a diverse customer base. both large and small 

Personally, my husband and I have been Bank of America customers since it assumed responsibility for the former Western Savings & 

Loan AssociationiSecmity Pacific institutions. That transition convinced me that it is possible to survive and thrive from change ac 

Bank of America while maintaining a high level of customer service. 

Thank you 

2400 North Central Avenue. Suite 303 l Phoenix. Arizona 85004 l (602) 252-1101 . FAX (602) 252~b:l’J 


AKIZONA 

HISPANIC 

July 10, 1998 

TESTIMONY OF SANDRA L. FERNIZA, PRESIDENT & CEO, ARIZONA HISPANIC CHAMBER OF COMMERCE 

To: Federal Reserve Bank of San Francisco 

Attn: Joy Hoffmann Molloy, Community Affairs Offker 

Ladies and Gentleme& The Arizona Hispanic Chamber of Commerce is pleased to have the opportunity to testify on behalf of the 

proposed Bank of America/NationsBank merger. In an era of decreasing public assistance to individuals of low and moderate income 

and small, women or minority owned businesses, banks, with the encouragement of the Community Reinvestment Act and the 

conscience of its board members, are a major source of hope to those who dream of home or small business ownership. Institutions 

such as Bank of America have been a source, both directly and indirectly, of credit and capital to those who lack access to 

conventional financial services through innovative products and community partnerships The current industry trend of bank 

consolidation poses serious questions for those of us who work with financial institutions in an effort to encourage investment, 

leveraging, financing and creation or preservation of jobs in less aflluent communities. However, our experience with Bank of 

America has led us to conclude that the proposed merger will result in a continuation and/or expansion of the bank’s commitment to 

senmg poor and diverse communities. 

Bank of America has been an active member and strong corporate partner of the Ariiona Hispanic Chamber of Commerce since 1980 

In addition, it was a founding member of the Los Amigos de AHCC, a corporate advisory group that provides both financial and 

business value to the AHCC and its small business members. Bank of America’s recognition, understanding and commitment to the 

growing Hispanic market is borne out in two key areas for AHCC: 1) DATOS, Focus on Arizona’s Hispanic Market, an annual 

publication and presentation of AHCC, with the Bank as premier sponsor; and 2) Minority Business Development. the Bank has 

committed both financial and technical assistance to the mission of ou Greater Phoenix Minority Business Development Center. 

Also. a member of the bank stafT serves on our Board of Directors and its bank ofticers and staE regularly participate in AHCC 

business seminars. host nehvorking mixers to highlight procurement opportunities and serve as speakers in OUT business education 

series: N.xLevel and Su Plan de Negocio. 

Bank of America has also demonstrated a commihnent to diversity in the boardroom, at all levels of management and in a unique 

bilingual customer service, CuentaTel. Through pirtnerships with organizations like others and ours, it supports training to 

consumers. business owners and others who play a promising and important role in developing the social and economic fabric of 

America. Most importantly to AHCC, the merger presents new opportunities for the local business community. A nationwide nehvork 

that has mater access to global financial markets is consistent with the growing presence of mutual customers seeking to retain and 

expand their business success. It also presents greater ease of service for individual consumers whose mobility is a vital pal of an 

expanding economy. 

AHCC expects the activities previously mentioned to continue after the merger of the two institutions. I want to reiterate that based 

on experience, we feel confident that the bank will not only continue its outstanding community service but also seek new ways to 

efficiently and effectively save the needs of a diverse customer base, both large and small. 

Personally. my husband and I have been Bank of America customers since it assumed responsibility for the former Western Savings & 

Loan Association/Security Pacific institutions. That transition convinced me that it is possible to survive and thrive from change at 

Bank of America while maintaining a high level of customer service. 

Thank you 

2400 North Central Avenue. Suite 303 l Phoenix, Arizona 85004 l (602) 252-1101 . FAX (602) 252~6.1 10 
,’ 

ARIZONA 

HISPANIC 

CHA\IREK OF COUMERCE 

July 10, 1998 

TESTIMONY OF SANDRA L. FERNIZA, PRESIDENT & CEO, ARIZONA HISPANIC CHAMBER OF COMMERCE 

To: Federal Reserve Bank of San Francisco 

Att”: Joy Hoffman” Molloy, Community Affairs Off&r 

Ladies and Gentlemen, The Arizona Hispanic Chamber of Commerce is pleased to have the opportunity to testify on behalf of the 

proposed Bank of AmericaMationsBank merger. In an era of decreasing public assistance to individuals of low and moderate income 

and small, women or minority owned businesses, banks, with the encouragement of the Community Reinvestment Act and the 

conscience of its board members, are a major source of hope to those who dream of home or small business ownership. Institutions 

such as Bank of America have been a source, both directly and indirectly, of credit and capital to those who lack access to 

conventional financial services through innovative products and community partnerships. The cUrrent indusm trend of bank 

consolidation poses serious questions for those of us who work with financial institutions in a” effort to encourage investment, 

leveraging financing and creation or preservation ofjobs in less afiluent conmmnities. However, OUT experience with Bank of 

America has led us to conclude that the proposed merger will result in a continuation and/or expansion of the bank’s commitment to 

sening poor and diverse communities. 

Bank of Anlerica has ken an active member and strong corporate partner of the Arizona Hispanic Chamber of Commerce since 1980. 

I” addition it was a founding member of the LosAnri~os de AHCC, a corporate a&isor) group that provides both financial and 

business value to the AHCC and its small business members. Bank of America’s recognition, understanding and commitment to the 

growing Hispanic market is borne cmt in two key areas for AHCC: 1) DATOS, Focus on Arizona’s Hispanic Market, a” annual 

publication and presentation of AHCC, with the Bank as prenGer sponsor; and 2) Minority Business Development. the Bank has 

committed both financial and technical assistance to the mission of our Greater Phoenix Minor& Business Development Center. 

Also. a member of the bank staff serves on our Board of Directors and its bank officers and statT regularly participate in AHCC 

business seminars, host networking tiers to highlight procurement opportunities and serve as speakers in OUT business education 

series: NxLevel and Su Plan de Negocio. 

Bank of America has also demonstrated a commitment to diversity in the boardroom, at all levels of management and in a unique 

bilingual customer service, CuentaTel. Through partnerships with organizations like others and ours, it supports training to 

consumers, business owners and others who play a promising and important role in developing the social and economic fabric of 

Anwica. Most importantly to AHCC, the merger presents new opportunities for the local business community A nationwide nehvork 

that has greater access to global financial markets is consistent with the growing presence of mutual customers seeking to retain and 

expand their business success. It also presents greater ease of service for individual consumers whose mobility is a vital part of an 

expanding economy. 

AHCC expects the activities previously mentioned to continue after the merger of the two institutions. I want to reiterate that based 

on experience, we feel confident that the bank will not only continue its outstanding community service but also seek new ways to 

efficiently and effectively serve the needs of a diverse customer base, both large and small 

Personally, my husband and I have been Bank of America customers since it assumed responsibility for the former Western Savings & 

Loan Association/Security Pacific institutions. That transition convinced me that it is possible to survive and thrive from change at 

Bank of America while maintaining a high level of customer service. 

Thank you. 

1400 North Central Avenue. Suite 303 . Phoenix. Arizona 85004 l (602) 252-1101 . FAX (602) 252-01~13 
AKIZONA 

HISPANIC 

July 10, 1998 

TESTIMONY OF SANDRA L. FERNIZA, PRESIDENT & CEO, ARIZONA HISPANIC CHAMBER OF COMMERCE 

To: Federal Reserve Bank of San Francisco 

Att”: Joy Hoffman” Molloy, Community Affairs Officer 

Ladies and Gentlemen, The Arizona Hispanic Chamber of Commerce is pleased to have the opportunity to test@ on behalf of the 

proposed Bank of AmericaMationsBank merger. In a” era of decreasing public assistance to individuals of low and moderate income 

and small, women or minority owned businesses, banks, with the encouragement of the Community Reinvestment Act and the 

conscience of its board members, are a major source of hope to those who dream of home or small business ownership. Institutions 

such as Bank of America have been a source, both directly and indirectly, of credit and capital to those who lack access to 

conventional financial services through innovative products and community partnerships. The current industry trend of bank 

consolidation poses serious questions for those of us who work with financial institutions in a” effort to encourage investment, 

leveraging financing and creation or preservation of jobs in less afIl”ent communities. However, OUT experience with Bank of 

America has led us to conclude that the proposed merger w+ll result in a continuation and/or elrpansion of the bank’s commitment to 

sening poor and diverse communities. 

Bank of America has been an active member and strong corporate partner of the Arizona Hispanic Chanlber of Commerce since 1980 

In addition, it was a founding member of the LosAm@x de AHCC, a corporate advisory group that provides both financial and 

business value to the AHCC and its small business members. Bank of America’s recognition. understanding and commitment to the 

growing Hispanic market is borne out in two key areas for AHCC: 1) DATOS, Focus on Arizona’s Hispanic Market, a” annual 

publication and presentation of AHCC, with the Bank as prenlier sponsor; and 2) Minority Business Development, the Bank has 

comtitted both financial and technical assistance to the mission of our Greater Phoenix Minority Business Development Center. 

Also. a member of the bank staff serves on our Board of Directors and its bank officers and staff regularly participate in AHCC 

business seminars, host networking misers to highlight procurement opportunities and serve as speakers in OUT business education 

series: NsLevel and Su Plan de Negocio. 

Bank of America has also demonstrated a conunitment to diversity in the boardroom, at all levzls of management and in a unique 

bilingual customer service, CuentaTel. Through partnerships with organizations like others and ours, it supports training to 

consumers, business owners and others who play a promising and important role in developing the social and economic fabric of 

America. Most importantly to AHCC, the merger presents new opportunities for the local business commonit)-. A nationwide network 

that has greater access to global financial nwrkets is consistent with the growing presence of mutual customers seeking to retain and 

expand their business success. It also presents greater ease of service for individual consumers whose mobility is a vital part of an 

expanding economy. 

AHCC expects the activities previously mentioned to continue after the merger of the hvo institutions. I want to reiterate that based 

on experience, we feel confident that the bank will not only continue its outstanding community service but also seek new ways to 

efficiently and effectively serve the needs of a diverse custonw base, both large and small. 

Personally, my husband and I have been Bank of America customers since it assumed responsibility for the former Western Savings & 

Loan Association/Security Pacific institutions. That transition convinced me that it is possible to survive and thrive from change at 

Bank of America while maintaining a high level of customer service. 

Thank you 

2400 North Central Avenue. Suite 303 l Phoenix, Arizona 85004 l (602) 252-1101 . FAX (602) 252.Cll’, 
ARIZONA 

HISPANIC 

Joly 10, 1998 

TESTIMONY OF SANDRA L. FERNIZA, PRESIDENT & CEO, ARIZONA HISPANIC CHAMBER OF COMMERCE 

To: Federal Reserve Bank of San Francisco 

Attn: Joy Hoffman Molloy, Community Affairs Offker 

Ladies and Gentleme& The Arizona Hispanic Chamber of Commerce is pleased lo have the opportunity to testify on behalf of the 

proposed Bank of America/Natio”sBank merger. I” a” era of decreasing public assistance to individuals of IOU and moderate income 

and small, women or minority owned businesses, banks, with the encouragement of the Community Reinvestment Act and the 

conscience of its board members, are a major source of hope to those who dream of home or small business owership. Instihltions 

such as Bank of America have been a scwce, both directly and indirectly, of credit and capital to those who lack access to 

conventional facial services through innovative products and community partnerships. The current indusw trend of bank 

consolidation poses serious questions for those of us who work with financial institutions in a” effort to encourage investment, 

leveraging financing and creation or preservation of jobs in less affluent communities. However, our experience with Bank of 

America has led us to conclude that the proposed merger will result in a continuation and/or expamion of the bank’s commitment to 

sewing poor and diverse communities. 

Ba~lk of Anlerica has bee” an active melnber and strong corporate partner of the Arizona Hispanic Chamber of Comnierce since 1980 

In addition it was a founding member of the Los Amigos de AIKT. a corporate advisor group that provides both financial and 

business value to the AHCC and its small business members. Bank of Anlerica’s recognition, understanding and commitment to the 

growing Hispanic “wkct is bomc out in two key areas for AHCC: 1) DATOS. Focus on Arizona’s Hispanic Market, a” annual 

publication and preset~tation of AHCC, with the Bank as premier sponsor; and 2) Minority Business Development, the Bank has 

committed both financial and tecllnical assistance to the mission of our Greater Phoenix Minorit) Business Development Center. 

Also, a member of the bank staff serves on our Board of Directors and its bank officers and staff regularly participate in AHCC 

business seminars, host networking mixers to highlight procurement opportunities and serve as speakers in our business education 

series: N.&eve1 and Su PIan de Negocio. 

Bank of America has also demonstrated a comnGtme”t to di\-ersity in the boardroom, at all levels of management and in a unique 

bilingual customer sen-ice. CuentaTel. Through partnerships nith organizations like others and ours, it suppons h-aining to 

consumers, business owners and others who play a promising and important role in developing the social and economic fabric of 

America. Most tiponantly to AHCC, the merger presents new opportunities for the local business conummit\-. A nationwide network 

that has greater access to global financial markets is consistent with the growing presence of mutual customers seeking to retain and 

expand their business swcess. It also presents greater ease of service for individual consumers whose mobilit) is a vital part of a” 

e\panding economy. 

AHCC expects the activities previously mentioned to continue after the merger of the two institutions. I want to reiterate that based 

on experience, we feel confident that the bank will not only continue its outstanding community service but also seek new ways to 

efficiently and effectively sense the needs of a diverse customer base. both large and small 

Personally, my husband and I have been Bank of America customers since it assumed responsibility for the fomvx Western Savings & 

Loan Association/Security Pacitic institutions. That transition convinced me that it is possible to survive and thrive from change at 

Bank of America while “wintai”i”g a high level of customer service. 

Thank you 

2600 North Central Avenue. Suite 303 l Phoenix. A:izono 85004 . (602) 252-l 101 . FAX (602) 252-61 :C 
, . 

AKIZONA 

HISPANIC 

CH,L\~KEK Or COMMERCE 

JuIy 10, 1998 

TESTIMONY OF SANDRA L. FERNIZA, PRESIDENT & CEO, ARIZONA HISPANIC CHAMBER OF COMMERCE 

To: Federal Reserve Bank of San Francisco 

Attn: Joy Hoffmann Molloy, Community Affairs Ofiicer 

Ladies and Gentleme& The Arizona Hispanic Chamber of Commerce is pleased to have the oppxhmity to testify on behalf of the 

proposed Bank of America/NationsBank merger. In an era of decreasing public assistance to individuals of low and moderate income 

and small, women or minority owned businesses, banks, with the encouragement of the Community Reinvestment Act and the 

conscience of its board members are a major source of hope to those who &earn of home or small business ownership. Instihltions 

such as Bank of America have been a source, both directly and indirectly, of credit and capital to those who lack access to 

conventional financial services thmygh innovative products and community partnerships. The current indush). trend of bank 

consolidation poses serious questions for those of us who work with fmncial institutions in an effort to encourage investment, 

leveraging ftnancing and creation or preservation of jobs in less afnuent communities. However, our experience with Bank of 

America has led us to conclude that the proposed merger will result in a continuation andor expansion of the bank’s commitment to 

serving poor and diverse communities. 

Bank of America has been an active member and strong corporate partner of the Arizona Hispanic Chamber of Commerce since 1980 

In addition, it was a founding member of the LosAnrigos de AHCC, a corporate advisory group that provides both financial and 

business value to the AHCC and its small business members. Bank of America’s recognition, understanding and commitment to the 

growing Hispanic market is borne out in two key areas for AHCC: 1) DATOS, Focus on Arizona’s Hispanic Market, an annual 

publication and presentation of AHCC, with the Bank as premier sponsor; and 2) Minority Business Development, the Bank has 

committed both financial and technical assistance to the mission of our Greater Phoenix Minority Business Development Center. 

Also. a member of the bank staff serves on our Board of Directors and its bank officers and staff regularly pariicipate in AHCC 

business seminars, host networking mivers to highlight procurement oppommities and serve as speakers in our business education 

series: NxLevel and Su Plan de Negoc;o. 

Bank of America has also demonstrated a commitment to diversit\; in the boardroom, at alI levels of management and in a unique 

bilingual customer service, CuentaTel. Through parmerships nith organizations like others and ours, it supports training to 

consumers, business owners and others who play a promising and important role in developing the social and economic fabric of 

America Most importantly to AHCC, the merger presents new opportunities for the local business community A nationwide nehvork 

that has greater access to global fwncial markets is consistent with the growing presence of mutual customers seeking to retain and 

eqxmd their business success. It also presents greater ease of senice for individual consumers whose mobility is a vital part of an 

txpandmg economy. 

AHCC expects the activities previously mentioned to continue after the merger of the two instimtions. I want to reiterate that based 

on exzrience, we feel confident tti the bank will not only continue its outstanding community service but also seek new ways to 

efficiently and effectively serve the needs of a diverse customer base, both large and smaII 

Personally, my husband and I have been Bank of America customers since it assumed responsibility for the former Western Savings & 

Loan Association/Security Pacific institutions. That transition convinced me that it is possible to survive and thrive from change at 

Bank of America while maintaining a high level of customer senice. 

Thank you 

2600 North Central Avenue. Suite 303 . Phoenix, Ar;zona 85004 l (602) 252-1101 . FAX (602) 252-6110 
Testimony present 

J--3 

7/10/9x 

Dolores Smith, Presiding-&cer 

Bank of America-Nations Bank Merger Public Hearing 

Federal Reserve Bank of San Francisco 

IO1 Market Street 

San Francisco, California 

Presiding Officer Smith, 

Thank you for the opportunity to provide testimony at this hearing. I have asked for 

this time to describe my \.cry positive experiences working with the Bank of America 

Federal Savings Bank staff in Portland, Oregon. I am the Deputy Director in charge 

of community development for Community Action Team, a communitybased 

nonprofit, antipoverty agency sewing three rural counties in Northwest Oregon. Like 

many Community Action Agencies around the country, we provide a number of 

coordinated antipoverty programs such as Head Start, child and family development 

programs, J-ow Income Energy Assistance and homeless assistance. In the area of 

community development, we assist our communities with the development and 

rehabilitation of affordable housing. affordable home ownership, single family 

rehabilitation, and community facihties development. 

My understanding of the Community Reinvestment Act requirements is that a lender 

is expected to actively seek ways to meet the credit needs of its community. As a 

community organizer working in a rur.d area, I find that communities define 

themselves, usually at populations no larger than 10,000 persons. In our three county 

service area, two communities are xmed by n single bank based in the three counq 

arca. All other commercial banking is done with banks which serve nearly the entire 

state or, in most casts. many states. Given the re.&ties of the commercial banking 

industry in the 1990’s each ofour communities must look outside the community for 

some, or all, of its banking needs. 

While working in our communities. I have been approached by local bankers 

representing several banks. With one exception, these bank officials have understood 

very little about community development. Rather &an the offering a useful 

parmership, they have sought information and offered referral services. Bank of 

America has been different. In our community development work, no bank, IocJl or 

otherwise, has supported our commun~y development ef&wu like Bank of America 

Federal Savings Bank. 

In the last eight years, I have arranged three loans with the help of the Bank of 

America staff I have also arranged one with statewide nonprofit bank consortium and ~:z~-!il.:t:~~:i 

one with a government agency. The difference in support and service is marked. For s,:. ! !&;$. c:: <:7-: 

me, the irony of these experiences is simply brcnthcaking. I felt that I had to fight 

tooth and nail with the nonprofit and the govemment agency, to simply get good ‘x’“‘~‘~‘~ 

~z.;~J??Q3^-2 !T_; 
loans underwritten. In the case of the nonprofit and the state. I felt that my lending 

partner was seeking to underwriting the transaction in ways that reduced my agency’s 

development and operating cushions so low that it would deny us sufficient capacity 

to contiiue to our work. 

Working with the Portland Bank of America staff is an entirely different experience. 

They appear to be actively planning for out future. The Bank’s staff have encouraged 

us to take on new roles, increasing our efficiency and effectiveness. During campaigns 

to organize and develop the cap+ of other nonprofits working in my three-county 

service area, I have received the Bank’s support in the form of time, expertise and 

money. ‘IThe Bank’s staff has taken a personal interest in developing the capacity of 

my agency and me personally. This has taken the form of scholarships, supportive 

information and advice. 

I cannot speak about any of Bank of America’s CFU work except that which goes on 

in Portland. Nor do I have any experience with Nations Bank. However, I can say 

that Bank of An+a and its Portland staff have made a huge difference in our ability 

to do out work. 

James C. Tierney 

Deputy Director 
Federal Reserve Bank of San Francisco 

Bank AmericaRJationsBank Merger Hearing 

July 10, 1998 

Joann Hauger 

Community Housing Resources of Arizona 

500 East Thomas Road, Suite 300 

Phoenix, Arizona 85012 

I am executive director of Community Housing Resources of Arizona (CHRA) a Hudapproved housing counseling agency which was established in 1987 to promote fair 

housing and equal’housing opportunity for residents of Phoenix. In 1990, we expanded 

our services to include prepurchase counseling and affordable homeownership programs. 

In the 8 years since then, over 2,100 low and moderate income families have completed 

our counseling program and become homeowners and over 600 low-income and minority 

household have received downpayment assistant grants. On average, our agency puts 27 

families per month into their own home. 

In order to make the dream of homeownership a reality for lower income and minority 

households, Community Housing Resources relies heavily on the support of financial 

institutions. Over the last 6 years, Bank of America Arizona has been instrumental in our 

success by providing significant funding and management support. We sincerely hope our 

mutually beneficial relationship with the bank will continue after the merger is completed. 

Bank of America has recognized the value of prepurchase counseling in preparing lower 

income households for homeownership by contracting with CHRA to provide prepurchase 

counseling for low-income, first-time homebuyers. B of A has provided first mortgages for 

our clients and has given us generous grants to support our counseling program. These 

grants have not only provided operating funds, but have also provided the matching funds 

needed to secure government funding for downpayment assistance grants and 

homeownership counseling. 

In addition to the financial contributions, Bank of America Arizona employees, James 

Raybum, Juan Salgado and Darryl Tenenbaum have unselfishly helped and guided the 

agency by providing hundreds of hours of management service. They have all served on 

the CHRA board of directors and have provided technical assistance which ensured that 

the agency’s goals and mission have been achieved. 
Joann Hauger Testimony Page 2 

As a director since 1990, Jim Raybum has saved our organization thousands of dollars by 

providing countless hours of pro bono legal advice. 

Community Housing Resources strives to provide homeownership opportunities for 

under-served populations including persons with disabilities and ethnic minority 

households, Over 60% of our clients are Hispanic and more than one-third of ah 

counseling sessions are conducted in Spanish. Our main concern with the proposed 

merger is that our low income and minority clients will be under served by the creation of 

a much larger bank. We are, however, encouraged by recent articles describing 

NationsBank’s increased efforts to serve the growing Hispanic community, and we trust 

that those efforts will extend to all traditionally under-served communities in Arizona. 

We support the merger with the expectation that the current level of support for our 

organization, including employee involvement, will continue and that the new bank will 

provide increased homeownership opportunities for the low income and minority 

communities we serve.