FBO Advocate’s Response to the FleeVBankBoston Merger 

Public Information Meeting + Federal Reserve Bank, Boston, MA 

July 7, 1999 + Frank Kelley, testifying 

I. The Introduction 

A, My voice is one of nratty, nie Pa& Based (-jr@nrations, a cor,s&uencyy of over 200 strong -will “& 

sent a press release along with a copy of my request to testify here and this statement. 

B. In greater Boston, over 200 Faith Based Organizations, or “FBO’s” as they are popularly known, 

service over 100,000 people and that includes 25,000 plus families. My a.Eliation with these FBO’s 

grew out of my early career of twenty years in Boston banking. From there I was called out into full 

time community service in 1987 and then into the pastoral ministry in 1990. Founding and chairing 

the United Christian Financial Services Association, a broad-based non-profit corporation, opened 

doors for networking and relationship building. 

II. The Concern: Questionable Resources and Options 

A. There are questionable resources for the people. 

B. There are questionable facilities and options for the community, i.e., our neighborhoods and the 

FBO’s that serve them. 

1. Significant Gaus 

a. 5000 Job losses - Family wipeout. 

b. 270 Branch ciosings - introduces barriers to service access. 

c. Two banks having “Committed Monies” down to one bank - 

Commitments could be withdrawn or signiticantly changed. 

2. The Resultinu Need 

a _. Viable nro!xams r__5)--__-_ written into the nlans of the new meea bank. to address &se gap ..--___-- --__ --_ r_-__ _- ___ ___ ___-p- _____, __ --_ _LL 

b. A Community Voice is needed now as a necessary tool in program planning: 

. to be present at the planning tables, 

. to provide input on specifics of programs to address these gaps, 

l and to link the community with the approval process. 

Page 1 of 2 
III. The Necessary Tool - Boston’s Network of Faith Based Organizations (FBO’s) 

A. The Faith Based Organizations are continuously being challenged to grow; challenged by the 

community and lately, by government and other sectors - AND THEY HAVE “GROWN UP”! 

1. Under the IRS guidelines of the 5Ol(C)3 and related nonprofit structures, a diverse 

representation of the city have increasingly taken on responsibility for the prosperity of their 

neighborhoods and surrounding communities, resulting in corporate financial accountability as 

never before. Listed here are 12 examples of the many who edify our urban community: 

Black Church Capacity Building Project Mattapan Dorchester Churches in Action 

Black Ministerial Alliance NETWORK 

Boston Education Colllborative Organization ‘Leadership iraining Center 

Christian Economic Coalition TenPoint Coalition 

Emmanuel Gospel Center United Christian Financial Services Association 

Greater Boston lnterfaith Organization United Pentecostal Ministers Conference 

2. Since dismantling the old welfare system and proposing more local solutions, the Federal 

Government and others are looking to the FBOs for proven expertise in service delivery at the 

community level 

a. City of Boston Empowerment/Enterprise Zone Initiatives (Round I 62 II) 

b. A Faith Based Organization Initiative tied to the Boston Empowerment Zone. 

3. Interest has been heightened among University Academicians toward the Faith Based 

Organizations in recent years. 

a. Harvard University - Kennedy School of Government 

b. Brandeis University - The Thermostat Institute for Political & Social Action 

d. AND OTHER several colleges and universities have been reorganizing curriculwn 

through the experienced participation and leadership of the FBO’s. 

IV. A Three Step Call to Action 

A. 

B. 

C. 

Be intentional about being inclusive when addressing the above mentioned gaps and needs! 

Provide a seat at the table for representatives of the organized FBO community to contribute their 

knowledge and networking resources to the research and proposal writing process. 

Call upon the FBO community to issue support for the merger approval process from the needs 

assessment through the program writing and approval sign-off. 

1 Continuous community input is welcome through an FBO voice mailbox at 617-929-0352. 1 

Page 2 of 2 
VALLEY OPPORT~JNITY COUNCIL,INC. 

The Community Action Agency Serving Chicopee and Holyoke 

Geraldine S. Bilik, Execufive Director Edward J. Geaughan, Lbplcty Director Finance 

Gail D. Pisacane, Deprr!y Director Programs 

300 High Street, Holyoke, MA 01040 

Telephone (413) 552-1554 Fax (413) 552-1558 

Fleet Merger Comments Page 1 

My name is Gail Pisacane and I am the Deputy Director of the Valley Opportunity 

Council, the Federally designated Community Action Agency for the cities of Chicopee 

and Holyoke, MA. With an annual budget of approximately nine million dollars we 

provide services to all 24 cities and towns of Hampden County including Westfield, 

Ludlow, West Springfield and on occasion, Springfield. Last year we provided direct 

services to over 26,000 low income and disadvantaged residents of our service areas. 

I testify today on behalf of the Valley Opportunity Council and the low-income residents 

we represent. 

John Rubins, author of Main Street. Not Wall Street (Morrow, 1998) writing in the 

_Jl~!v/Allollct 1999 ditinn nf ~‘ATICII~P~E ninpct ~&tPc ‘With f;)xw ovrmntinnr? him hanlra J I I ‘“D”“b I J I / “UlCA”ll “I v”I*ouIII”I LI uL.+“oL “.A‘CY.T, .I &C&l A”“. “A”“~LA”IID, “‘fj “UAILIJ 

have traditionally been inhospitable places for small savers.. . And their penchant for 

combining into bigger entities doesn’t seen to be changing that. The recent mergers are 

producing higher fees, fewer branches, fewer ATM’s and fewer tellers.” He cites Brian 

O’Connor, managing editor of Bank Rate Monitor. 

Our experiences suggest that low-income individuals cannot be expected to maintain 

minimum -----------.--- balances~ --.-----‘, which ..__________ might ~___ aualifv =--___~ them ___-1___ for _-_ lower _- . . -I_ nr __ nn ___ rnst -I_.._ services -__ . _-I__ within .._______ the ____ 

bank. They need inexpensive checking and ways to access their minimal savings without 

accruing service charges. They need bank branches and/or ATM’s located in their 

neighborhood. Few, if any, banks seem willing to accommodate to these needs. 

According to O’Connor. We are seeing banks charging $25-$35 to print a couple of 

hundred checks when a customer can get that done for $5 by mail. Some banks hit you 

for $20, $25 or even $30 for a bounced check when returning the check costs 

approximately $2. “When you open a checking account with a large bank you’re inviting 

(it) to find every way (it) can to rake you over the coals”. 

Why then should we, or any organization that serves the poor and low income, support 

this merger? Without some assurances that the needs of those whom we represent will be 

addressed, we would be remiss in our duty as an advocate for the poor were we to do so. 

.‘,.. . : .__. . . ..I.. ,- 

_ ‘.‘..,. . ,... ;.,. , _~, : ‘. : ’ . .. .,;: .,.- .._. ,..; ,.,_ ,, _, .__ _. . ,(, ;, _ _, (. ,_. ,_ _. ,,, 
In human services there is an expectation that as the number of clients increase, that costs 

per client decrease. ‘Economy of scale” is the mantra of those who espouse the “bigger is 

better” theory of service provision. 

In the private sector however, the elimination of competition through merger frequently 

serves as the prelude to increased costs to the consumer. 

Fleet Merger Comments Page 2 

In addition to the effect of the merger on clients, we must consider the effects on the 

Valley Opportunity Council itself. As an agency that has been involved in housing 

development, rehabilitation and management, we have had cordial relationships with the 

local banking community. As the merger takes place and decision making is centralized, 

our ability to deal with decision-makers on the local level is impaired. Currently, the only 

way to call the Fleet Bank Branch located across the street form our headquarters is to 

call Boston. 

We would hope that prior to approval of this merger the Federal Reserve will require that 

Fleet and BankBoston develop a detailed and publicly verifiable reinvestment plan which 

has been negotiated with community organizations and elected officials, with specific 

commitments ensuring a net benefit to iow and moderate income and minority 

communities. We also ask that the public comment period be extended for two weeks 

after such a plan has been released to the public and that no approval be issued unless and 

until these conditions are met. 

It is essential that if and when this merger is approved that stipulations regarding lifelinebanking service for the poor, access to branches and ATMs and economies of scale for 

service fees are attached to said approval. We would also hope that some allocation of 

money to support !QGJ non-profit needs and committed bank involvement in the local 

community is considered. 

Thank you for the opportunity to comment. 

. . .