TO: 

FROM: 

Federal Reserve Bank Boston, MA 

Sam Hamilton, Executive Director 

Hartford Economic Development Corporation 

Greater Hartford Business Development 

Center, Inc. 

DATE: July 7,1999 

SUBJECT: Fleet Bank/Bank Boston Proposed Merger 

My name is Samuel C. Hamilton and I am the Executive Director of the Hartford 

Economic Development Corporation (HEDCo) and the Greater Hartford Business 

Development Center, Inc. (GHBDC). I rise to speak in favor of the proposed merger of 

Fleet Bank and Bank/Boston. 

UCnPn 0-A CURnP WP nA,,d,=. nnt fm- nrnfit T nral npx~plnnmpnt rnmnratinnc urhirh 

IIbYb” CUIU UIIUYV cuv ~IIILLC” ll”C I”I ya”ub U”“U. YY.“l”~IIIYIA~ ~“Ly”‘uc’““” .TIII”.. 

provide technical assistance and loans to small businesses in the Metro Hartford Area. 

Currently, we manage a little over 20 million dollars in funds which is utilized as an 

alternate source of capital for local economic development activities. Since 1975 we 

have packaged $65,000,000 plus in loans to a portfolio that is 70% minority (35% 

African American, 33% Hispanic/Latino and 2% Asian American) Interestingly, 70% of 

the loans are to businesses in Hartford who in turn have hired residents of Hartford to fill 

their employment needs. 
During the course of our 25 year existence, both Fleet Bank and Bank/Boston have been 

active supporters of small business development with respect to access to capital and the 

technical assistance to support, sustain and grow businesses. I have experienced first 

hand the continuation of their strong commitment during and after previous mergers and 

acquisitions. In my opinion, I believe the same will be true in this proposed merger. 

I have found both Fleet and Bank Boston to be especially sensitive to the needs of the 

community. The creation of Fleet Community Development Corporation and First 

Community Bank are prime examples of each institutions initiative to provide means for 

greater access to the Bank’s products and services. Fleet and Bank Boston have supported 

other entities in the Hartford Community who provide alternative means of access to 

capital, technical assistance and support with particular emphasis on increasing the 

In closing, in my capacity as Chairman of the Board of Directors of the United Way of 

the Capital Area, Past Chairman of the Hartford Neighborhood Housing Support 

Collaborative and a member of the Local Initiatives Support Corporation Local Advisory 

Committee, I am also able to confirm Fleet and Bank Boston’s involvement and support 

of innumerable programs and activities that empower people, provides comprehensive 

youth development, enhances educational opportunity and performance, strengthens 

families and creates a strong healthy community for all. They do this not only with their 

financial resources, but also with the personal involvement of people from all levels of 
the organization in every aspect of our Community. Again, I support the proposed 

merger and truly believe the new entity will provide more rather than fewer 

opportunities. 

scwf@ 
*- d 

TESTIMONY. FOR 

FLEET/BANlBOSTON MERGER 

Henry M. Thomas III, PRESKEO 

URBAN LEAGUE OF SPRINGFIELD, MA 

Wednesday, July 07,1999 

On behalf of he Urban League of Springfield, we are in support of the 

merger between BankBoston and Fleet Bank. There are a couple of reasons 

why we support this merger that I would like to share with the panel. Our 

t---l -I ---I -I:_--A -__--__:---- -_A ____ _____1_:__1______,_1__ _J2’1__ p&iiOIi iS uaseu cm uur um:c;L experience anu our wurmng ~giowieugt: 01 mt: 

communities in which we serve- Western Mass and we own and operate a 

residential summer youth camp in Central Ma., Camp Atwater. 

First, it is a significant advantage to this entire region to have a merger of 

two large banks that are both domiciled in this region. Continuity of 

relationships will stay in tact and institutional memory of community needs 

will not suffer 

. 

Secondly, the Urban League has enjoyed a long working relationship with 

both banks and it has been an excellent experience in both cases. Further, 

we have witness their work in the Western Mass community and there CRA 

records are commendable. 

More specifically, over the last Syears the Urban League has had an 

opportunity to work with Fleet Bank on local and regional issues. While 

serving as vice president of Natl. Urban League on special assignment for 

two years, I had privy to the extraordinary work of Fleet Bank in the area of 

community development. Through Agnes Bundy Scalan’s leadership and 

foresight Fleet Bank funded Urban Leagues throughout it’s footprint to 

levels over one and half million dollars. This funding was for the purpose of 

building capacity to deliver economic and workforce development services 

throughout the northeast region. In addition, Ms. Scanlan has forge a 

partnership with the National Urban League to produce conferences aimed at 

improving Fleet Bank’s understanding of multi-dimensional needs in the 

market place and to effectively communicate it’s CRA strategies. 

In Springfield alone the Urban League has experienced and observed MS 

Scanlan and Mr. Neal McBride exhibit remarkable leadership in not only 

providing much needed funding support to community base organizations, 

but more significantly Fleet Bank has served as a catalyst in mobilizing 

business community support for critical economic and social initiatives that 

make a difference in quality of live all residents. Fleet has a demonstrative 
understanding and is sensitive to regional community issues; which is one of 

the strongest assets they bring to this merger, in our view. 

The only coveat the Urban League would like to offer, is that, whatever 

economic business benefit accruing to these two institutions (that, in our 

opinion have earn the right to become one) should be shared with consumers 

to some extent. 

Additional capacity in equity programs, mortgage loan products and 

philanthropic giving should all be reasonable expectations resulting from 

this merger. 

LET US NOT FORGET AN IMPORTANT 

COMMON SENSE POINT: 

IT IS NOT THE FEDERAL RESERVE AND 

THE APPLICANTS ALONE THAT MAKES 

THIS MERGER POSSIBLE; 

ITS IS THE CONSUMER! 

NO COSTOMERS =-NO CAPACITY TO 

MERGE. THUS, THE CONSUMER SHOULff’ 

RF 111 iN A RETl=F_R PLACE THAN THEY WERE I._ - I-m I I._ I I--- m11-1w II111 I wIIIN_ 

BEFORE THE MERGER! 

C.‘ ,., 

., ..>,: 

THANK YOU FOR YOUR ATTENTION. 
4 

MONE Y & TECHNICAL ASSISTANCE FOR SMALL BUSINESS 

July 7, 1999 

STATEMENT OF LONG ISLAND DEVELOPMENT CORPORATION 

SOL SOSKIN, DIRECTOR PROCUREMENT TECHNICAL ASSISTANCE PROGRAM 

Re: Proposed Merger Fleet Financial Corp. with Bank of Boston 

Gentlemen: 

Thank you for the opportunity to testifjr before you today on behalf of Fleet Financial 

Corporation. Long Island Development Corporation supports the proposed merger. 

I am Sol Soskin, the Director of the Procurement Technical Assistance Program of the 

Long Island Development Corporation (LIDC), a not-for-profit 5OlC3 membership 

organization in Long Island, New York. LIDC is a regional economic development 

organization whose mission is to assist small businesses in Nassau and Suffolk Counties 

with loans and technical assistance. In business since 1980, LIDC is a certified 

development company under the US Small Business Administration 504 Loan Program as 

well as a branch bank of the New York Job Development Authority, administrator of 

several US Department of Commerce/Economic Development Administration Revolving 

Loan Funds, underwriter of a Department of Housing and Urban Development Section 

108 Small Business Revolving Loan Fund, partner in a national US Small Business 

Administration Small Business Investment Company, and manager of a newly formed 

micro loan fund with Community Development Financial Institution status pending at US 

Treasury. In addition to its loan programs, Long Island Development Corporation is the 

desienated __--~---.--_ Denartment ~~ ~=~.~ of Defense Procurement Technical Assistance Center for Long 

Island. 

Fleet has been a long time supporter of the various programs of Long Island Development 

Corporation and has partnered with LIDC to help small business, including small 

disadvantaged businesses; minority owned and women owned businesses on Long Island. 

Representatives of Fleet serve on LIDC’s board of directors, advisory board and 

committees. Currently, our President is John Garvey, Sr. Vice President of Fleet Bank. 

These Fleet representatives devote a considerable amount of time to helping guide LIDC’s 

activities. In addition to personnel time, Fleet provides meeting places for LIDC activities, 

assists LIDC with marketing its programs through Fleet’s internal publications, by hosting 

events highlighting LIDC programs, and through paid advertising sponsored by Fleet. 

l-?,__L mm_,_ t__ t,_, cl., ,__~:,_ C_,& __-_c____ ,__A - - T -._ T,~,.~A ..+4,_ +h, CR A cnn rleu mum 1ki5 utml u~t: 1edu1118 1113~ mul ~g;“p IG~UC~ ~11 LUII~ ~3mlu UIIUV~ UIC JY~ JY-~ 

loan program for the past 5 years. With Fleet’s assistance, LIDC has been able to make 

over 1,000 small business loans totaling approximately $350 million to Long Island 

companies. 

25.5 Executive Drive, Plainview, Long Island, NY 11803 

Phone: 516 349 7800 Fax: 5 16 349 788 1 URL: www.lidc.org 

E-Mail: biz-loans@lidc.org or gov-contracts@lidc.org 
Fleet Bank is a financial supporter of the Procurement Technical Assistance Program 

(PTAP). The Procurement Technical Assistance Program provides free counseling to very 

small businesses, chiefly small disadvantaged businesses, to help them obtain and perform 

on government and private sector contracts. PTAP is supported by grants from the DOD 

matched by the private sector. Fleet Bank has been providing matching funds for PTAP 

since 1996. In addition, Fleet actively refers small businesses for PTAP assistance. Fleet 

also seeks out vendors from our PTAP clients. Representatives of Fleet serve on the 

PTAP governing committee and help set policy and access resources for PTAP clients. 

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Program has successfUlly helped over 2,000 Long Island small businesses obtain 

approximately $275 million in government and other contracts. 

In connection with the Procurement Program, LIDC and Fleet co-venture in an initiative 

of Black Women Enterprises, a New York statewide coalition of Black women owned 

small businesses whereby BWE has partnered with the National Women Business Owners 

Corporation to help these companies be certified as women owned businesses and obtain 

and perform on corporate contracts with Fortune 500 companies. Fleet is a firnrncial 

sponsor of BWE’s efforts, provides BWE with computer and e-commerce capabilities and 

Fleet works together with LIDC to run the certification program. 

Fleet has been an active advocate for small business on Long Island for many years. 

Fleet’s activities with Long Island Development Corporation have been instrumental in 

helping LIDC to become one of the leading SBA 504 Certified Development Companies 

in the nation as well as helping LIDC to become one of the most active DOD Procurement 

Technical Assistance Programs in the nation. 

The proposed merger will bring additional resources to the table which will benefit our 

small business customers. The sheer size of The Bank of Boston will magnify the financial 

abilities of Fleet Financial Corporation which will make more products and services 

available to our Long Island small business market. 

Thank you again for this opportunity to support Fleet Financial Corporation in its proposal 

to merge with the Bank of Boston. 
Testimony of Peter A. Gagliardi 

Executive Director, HAP, Inc. 

322 Main St., Springfield, MA 

Wednesday, July 7,1999 

Federal Reserve Bank Public Meeting 

on the Fleet/Bank Boston Merger 

My name is Peter A. Gagliardi. I have served for the past 8 years as the Executive 

Director of HAP, Inc., the Hampden Hampshire Housing Partnership. Our organization 

works to provide affordable housing and to promote revitalization of neighborhoods by 

providing a comprehensive array of housing services, promoting the creation and 

preservation of affordable housing, and forging partnerships with public officials, 

community groups, and private institutions. Founded in 1973, HAP, Inc. is a major 

provider of housing services in the 43 cities and towns of Hampden and Hampshire 

Counties, an area with a population in excess of 600,000 people. 

As a partnership, we have looked to the major lenders which serve our region to 

participate in our efforts to carry out our mission. Both Fleet Bank and BankBoston 

have been among our key private sector partners. 

From the perspective of our region, I must express renewed anxiety over the loss of yet 

another major lending institution. Fleet Bank will become the successor to six or more 

institutions that played a long and important role in the life of our communities. Yet, I 

think that we all recognize the inevitability of bank mergers -- and we understand fUl1 \vell 

that the process will not end with this merger. In that vain, I express a sense of relief that 

these two institutions have had the foresight to take this step which, we hope, will 

maintain a major lender with headquarters in New England. 

At the same time, I must also express a note of caution or concern. In another year, or 

two, or five, we may well be in this place once again discussing a bank merger, this time 

with an entity headquartered hundreds or thousands of miles away. At that time, a 

written record of what we agreed to here may be our communities’ best hope of 

maintaining a commitment to lending and other bank services essential to the economic 

revitalization of our cities and towns and to opportunities for families to lift themselves 
from poverty. In that vain, I offer my testimony as a statement of the current levels of 

community reinvestment activities by these two institutions, hopeful that it will serve as 

a benchmark from which to measure the future success of our continued partnership. 

Having worked in partnership with both banks, I am in a position to speak to some of the 

contributions which each has made to the effort to revitalize communities and to promote 

the creation and preservation of affordable housing, both rental and ownership. It has 

been our policy to recognize the good things which have been done as well as to comment 

when we feel that community reinvestment efforts have been lagging. 

Let me first speak to the contributions which Fleet Bank has made to our initiatives: 

-- Fleet Bank was instrumental in creating our FIRST HOME program, an 

;n;t;qt:Tra r,rh;ch h-c. ~,-l,,~c~t~rl tnnte than ‘Infin nr\tpnt;al hn,nph,,v.t-r gnd ,&;,-I-, ha< IIIICIUIIV~ YYlllclll llcI.3 ~UUUUC~U AII”Ib LllUll J”“” y”cuIAcAcII AI”III~“U, YLY UllU . ..1.“11 . ..I.. 

resulted in more than 500 first time homebuyers in our region. Fleet’s initial three 

year commitment, which was a challenge to other lenders to join our partnership. 

made the difference. Fleet has continued it support of this initiative. 

-- Fleet Bank provided the construction financing, some $2.75 million, for our 

successful Quadrangle Court project in the heart of Springfield. The 33-unit 

project is the cornerstone in a neighborhood revitalization effort. 

__ Recently, as HAP has expanded it’s efforts to rehabilitate one and two family 

homes for resale to first time homebuyers, Fleet has made a commitment through 

the Fleet CDC of $500,000 in the form of a line of credit for that activity. This 

will make it possible for agency to increase the number of houses rehabilitated 

each year, enhancing our efforts to intervene in troubled neighborhoods at level 

that will truly make a difference. In addition, Fleet has offered an additional 

$250,000 operating line of credit to further facilitate expansion of our efforts. 

__ Fleet has also provided HAP with volunteer efforts, particularly in the person 

of Neal McBride who has served as a board member, including several terms as 

President of the corporation. Another Fleet staff member, Paul Tierney, serves on 

our Real Estate Investment Committee. This level of involvement truly makes 

ours a partnership. 

Throug-hout our bartnershin with Fleet Bank, we have enjoyed and appreciated the o--- --- __._ =.~~~~~~~~~ I~ 

responsiveness of Fleet’s Agnes Bundy Scanlan in particular. Her understanding of the 

needs of the community and her efforts to bring that agenda into the bank has resulted in a 

significant and positive change in Fleet’s Community Reinvestment efforts. 

BankBoston, and previously Bank of Boston and Bay Bank, has been another of HAP’s 

stalwart partners. In particular, we cite the following participation by Bar&Boston: 
__ Bank Boston, over the past several years, has become one of the principal 

supporters of HAP’s FIRST HOME program. In addition to providing 

significant operating support, Bank Boston has become the region’s major Soft 

Second” loan program lender, originating a steadily increasing number of loans in 

each of the past three years. 

-- To address the need for renovation at the time of purchase, Bank Boston 

pioneered the FIRST HOME Plus initiative with HAP, committing $5 million in 

mortgage loans that can be used for both acquisition and renovation by first time 

homebuyers. 

-- BankBoston has become a partner with the City of Springfield and the Lower 

UI T ihcrtv ”VI LJ U~inhtr Artinn Team tn cnpgrhpad the rpdpvplnnmpnt 2 kev neiphhnrhood ILU1&1C.J ‘ &“CI”II *w-II C” “yw-““..%. .*I_ s___. m.‘-r” *__*-_ - _‘_, --__ o___ _____ _ -- 

near the center of the city. The bank matched funds provided by the City through 

the neighborhood organization, allowing HAP, at the invitation of the City and the 

neighborhood, to develop a plan to purchase, rehabilitate, and re-sell a number of 

one and two family houses to first time homebuyers. This initiative, in 

conjunction with the work of Habitat for Humanity, will significantly restore this 

neighborhood, allowing the private market to once again function properly. 

-- Bank Boston demonstrated great sensitivity to the need to preserve the 

affordable housing stock in working with HAP to restructure 1980’s era debt on 

developments that were endangered due to funding cuts in the state’s rental 

assistance program, now known as the Massachusetts Rental Voucher Program. 

As a result, 20 single room occupancy units in Springfieid and i 9 apartments in 

Holyoke, including 10 dedicated to a transitional housing program for pregnant 

and parenting teens, were preserved as affordable housing. 

Both Fleet Bank and Bar&Boston have invested in affordable housing through the 

Massachusetts Housing Investment Corporation. MHIC’s equity participation in several 

rental projects developed by HAP has been instrumental in revitalizing neighborhoods 

while providing affordable housing. In addition, MHIC has recently made a commitment 

to provide construction financing for a new construction project in Chicopee that will 

provide opportunities for first time homebuyers in that city. 

The Massachusetts Housing Partnership Fund, another entity that has utilized resources 

from both Fleet Bank and Bank Boston, has provided permanent financing for several 

projects developed by HAP, including Quadrangle Court. 

My comments about Bank Boston would not be complete without pointing out the 

contributions made by Bar&Boston’s Community Bank, particularly in the area of 

lending to first time homebuyers. Bar&Boston’s Benjamin Cartegena, Jr., a loan 
originator headquartered in Holyoke, has been responsible for much of the Bank’s - 

substantial effort to assist first time homebuyers. He, along with Sue Seaver, has 

originated a substantial volume of Massachusetts Soft Second Loans. Recently, Ben was 

selected to represent BankBoston on HAP’s Board of Directors as well. 

While providing this generally favorable account of our experience with Fleet Bank and 

Bank Boston, I would be remiss if I did not raise several concerns: 

__ It has been noted elsewhere that Fleet’s level of LMI loan originations has 

dropped after past mergers. This appears to be the case in Western 

Massachusetts as well as overall. It would be a substantial loss to our region 

should that again be the case. This is a very serious concern. 

Fnllnwino the wtirempnt nf RgnkRnstnn Reoinnal President Richard C,tebbins. -- L “Al” .,A_ Lb .llV Av.llvl.lvl.. VA - __y___y._A_ ‘-‘b-___“_ _ __-______ _____ -__ L._-- . ..- i 

the bank moved the regional presidency to Hartford. Fleet Bank currently 

maintains a regional president in Springfield in the person of Richard Zilewicz. 

Should the merged bank not continue Fleet’s commitment to maintain this 

position, it would represent a significant loss of leadership and reduce the level of 

the bank’s participation in community affairs in Western Massachusetts. 

__ In some of the public dialogue leading up to today’s hearing, there has been 

much speculation about Fleet’s divestiture of nearly $14 billion in assets and the 

impact that might have on the merged bank’s level of activity in everything from 

mortgage lending to corporate philanthropy. In Western Massachusetts, we are 

concerned that any reduction in activity in the state as a whole might also affect 

our region in spite of the fact that none of the bank’s hoidings in our region wiii be 

divested. In our case, there will be no new competitors buying Fleet assets who 

could be looked to for the purpose of filling any resulting gaps. We feel that the 

bank should be held to its promise, made at the time of the merger announcement; 

for Western Massachusetts, in particular, one plus one must equal two for there 

will be no one else to turn to. 

There has been disagreement over whether or not there will be a written agreement 

whereby the merged bank pledges to undertake certain Community Reinvestment 

activities over some period of time. As I mentioned at the beginning of my remarks, it is 

our feeling that a written commitment, binding upon successor banks should there be 

another merger, would be the most effective safeguard for what I believe are shared 

community reinvestment goals. Regardless of the outcome, we ask that the regulators 

overseeing this merger continue to take steps to ensure that the new bank maintains the 

efforts of its predecessors to reinvest in the communities from which it accepts deposits 

and that the record of these proceedings be considered a record of the banks’ 

commitments. For the bank, community reinvestment lending is good business; for the 
community, it is essential. The level of productive community reinvestment activity that 

I have cited in my remarks should be seen as a starting point upon which to build. 

A m,:, 1 ..,,..l,-l 1:1,,-. +n +L,-%,l, +Lo lYa-lm.nl D a”de.Tr* R",l, cr., I\nnrl..n+;mn th;” nmPT-4 ,,,hl;r. 

q+lUl, I W”LllU llnc L” LIIclIlA LUG I ruGla1 1\b3G1 “G UculIi I”1 b”lluu~Lrl*l~ LLllJ “pll p,u”l‘L 

meeting. While bank mergers may be routine for the Fed, they are momentous occasions 

that are far from routine for the communities that find themselves further and further 

removed from banking leaders and decision makers. 
Federal Reserve Bank of Boston 

Public Hearing 

on 

Fleet Bank Merger with Bank Boston 

l..l., 7 1000 cJ”lJ I( I/// 

Statement 

F. Carlisle Tower! 

President 

Greater Jamaica Development Corporation 

New York City 

Greater Jamaica Development Corporation (GJDC) is a private. not-for-profit local 

development organization whose mission is to encourage and facilitate the economic recovery 

and revitalization of downtown Jamaica. Queens. New York City. and its environs. 

GJDC was formed in 1967 by business. civic and community leaders -- including 

commercial banks -- and has worked since that time in close partnership with all sectors to carry 

out the plan to transform Jamaica’s older downtown into a modern center of business. 

commercial and industrial employment. higher education, the arts. transportation and housing 

improvements. This plan was prepared by Regional Plan Association -- the venerable 

organization which monitors the economy and growth of the 3 1 - county. tri-state New York 

Metropolitan region -- by City government. and local leaders to service some half-million 

residents who live in 2 1 neighborhoods around this downtown. Our mission is challenging and 

high in public purpose. 

We appreciate this opportunity. We are. after all. end-users of financial products and our 

success is fundamentally affected by the efforts of financial institutions. Our community is the 

beneficiary when these products are shaped and tailored and prioritized to enable community 

development and to capacitate its practitioners. 

Jamaica has benefitted indeed from Fleet Bank‘s efforts. My comments are to emphasize 

the involvement and support we have received from Fleet and its predecessors over the 32 years 

of our economic development and community reinvestment work in Jamaica. This community -- 

working to recover from a ten-year period. 1975 to 1985. of severe economic trauma. uncertainty 

and a generai i0ss of pubiic coniidence -- has recovered and advanced significantiy. with some 

progress attributable directly to Fleet’s good works. 
Fleet. and previously Nat West. has provided strong and on-going leadership for Greater 

Jamaica Development Corporation’s work. serving consistently on our Board with able. active 

and involved senior representation. Two senior executives from Nat West served as our 

chairmen for a four-year period. Contributions to our Board’s responsibilities and to staffs 

activities have included a high level of intelligence and interest in our general governance. 

sponsorship of retreats. meetings and special events -- including chairing our annual fund-raising 

gala -- advocacy with government. financial contributions at leadership levels toward our 

general operations. construction and permanent financing for several projects we initiated. and a 

flexible line-of-credit that has enabled us to undertake numerous small strategic developments. 

Fleet has participated in the provision of local small business loans through our revolving 

loan fund. which is capitalized by the U.S. Economic Development Administration, NYS 

Empire State Development and the City of New York’s Department of Business Services using 

federal Community Development Block Grant Funds. Fleet has provided operating support for 

two of our associated or affiliate organizations -- Jamaica Arts Center and Jamaica Business 

Resource Center. 

Just last month. two senior Fleet executives hosted a working session to explore ways and 

means for York College to capitalize on the aviation/airport economy which could be enabled by 

the recently - approved light rail system from Jamaica to JFK Airport. York is another key 

project for Jamaica in which we were instrumental. 

Working with Fleet’s people is inevitably a pleasant and productive process for us. They 

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things done. Their personal and corporate involvement in Jamaica have been material in the 

success of this community’s revitalization. At conferences with my peers. I have learned of 

Fleet’s impressive community development and reinvestment roles in numerous places. Clearly. 

Fleet Bank is a serious. committed and exceptionally good corporate citizen. 

2 
-> 

< * 

WESTERNMASSACHUSETTSENTERPRISEFUN

308 Main Street, Suite 2-B l Greenfield, hIA 01301* (413) 774-4033 l Fax (413) 774-3673 

Testimony of Christopher Sikes 

Executive Director, Western Massachusetts Enterprise Fund, Inc. 

For the Federal Reserve Hearing on the Fleet/Bank Boston merger 

July 7, 1999 

Thank you for the opportunity to offer public comment on the Fleet/Bank Boston merger at this 

-~~1-1:, ____*~__ T-__ -1~ ._._ _I~_ l-l.1 ~~ rl 

pu~nc meering. I am Lnrisropner >iKes, Ine Executive Director ofthe \;v’estern iviassachusetrs 

Enterprise Fund, a Community Development Financial Institution (CDFI) serving that vast 

subcontinent of the four counties of western Massachusetts and Northern Worcester County. We 

form partnerships with twelve Community Development Corporations (CDCs) in the region. 

WMEF’s Board of Directors includes members from both Fleet and BankBoston. In addition, I 

have a seat on the Fleet CDC Board of Directors. 

We have established excellent relationships with all levels of the Fleet and BankBoston staff, 

When we need to reach someone or get a quick answer to a question, we know whom to reach 

from the office staff. When we need to talk to loan officers about potential loans to our 

customers, we know who to speak with. Just as importantly, they know us. When we need to 

speak with upper level adm_inistrators we have easy access to the peop!e WP ..v a.__.. nwrl tn .w rmrh .w..v.., They 

have been responsive to us and we have been responsive to them. 

Over the past five years Fleet made significant capital and operating grants to WMJZF. In 

addition, it provided us with a $500,000 line of credit which is the cornerstone of our small 

business lending program. BankBoston also supported us with capital and operating grants 

These contributions came at a time when we were most vulnerable. 

Of particular note has been the support of Neal McBride, our community development manager 

from Fleet. Over the years Neal has provided consistent support and wise counsel. Agnes 

Bundy Scanlan has also been a strong supporter of WMEF. Martin Geitz, the President of the 

Fleet CDC has been actively working with WMEF to provide it the financial backing‘to get 

federal funding from the CDFI fimd through the U.S. Department of the Treasury. Michael 

Glavin from BankBoston has been a strong supporter of WMEF providing us with critical 

matching fbnding for our CDFI application. 

While I speak in some jest of being located in this vast hinterland comprising about one-third of 

the geography of Massachusetts, it is no joke that the resources for economic development are 

far less than they are here in Boston. The disparity between the economies of eastern and 

western Massachusetts is only growing larger with the impact of private and public investment 

into technology. 

bIE;CIBERCO~I~IUNITiDEVELOP~lENTCORPORATIONS-FRANKLINCOUN~~ GREATERGARDNER 

GREATERHOLYOKE l HILLTOWN .~lILLERSRI\iERSELF-HELPNETMORK*NORTHCOUNTi.NUEVAESPERANZA 

PITTSFIELDECONOMICREVITALIZATION l QUABOAGVALLEY* TWINCITIES*VALLEY*WESTFIELD 

“Helping create a climate of economic opportunity in WRstern Masachusetts” 
It is therefore with a very wary eye that we examine any bank mergers. We have lost many local 

banks in the region through mergers. In particular, we recently experienced an outside purchase 

of a regional bank that had the unfortunate effect of reducing the bank’s presence in the 

community. 

In the instance of the Fleet and BankBoston merger, we believe that having the largest bank in 

New England headquartered in Massachusetts is better for our region than having an out-of-state 

bank calling all the shots. This allows us to build upon our existing relationships in a mutually 

productive manner. 

We have some concerns however. First, there are no scheduled divestitures in our region. That 

means that two banks will truly become one bank. Both banks have been very active small 

business lenders. We would expect small business lending to continue at least at the current rate 

of both banks together, especially in low income and rural communities. They should also 

maintain their collective rate of lending to businesses with less than $1 million in revenue and 

their rate of making loans under $100,000. 

Second, WMEF is a partnership of CDCs, community based organizations. We have been 

dismayed that there have not been direct negotiations with the community groups discussing the 

impact of the merger. WMEF makes a commitment to making sure that our partners are well 

served by this merger for truly the success of our partners is our success. 

._A:L.mr- .__.___*.__ 1-__,_..--A___, :_ ‘hK_____L..__LL_ Third, we are concerned that even though the insrirure remains neauqua~ meu 111 ~v~ass‘a~~iustxt~ 

that the local lending decisions that have been in effect at Fleet will continue. Specifically, we 

would request that local lenders have the authority to make loans up to $250,000. 

Finally, we applaud the efforts made by Fleet CDC to make substantial investments to 

Community Development Financial Institutions. Our concern is that it will continue. 

We are hopeful that this new institution will bring us more needed resources to the region 

Thank you for your time and consideration. 

Western Massachusetts Enterprise Fund, Inc. Page 2 July 7, 1999 
TESTIMONY OF JIM MORGO 

BEFORE 

FEDERAL RESERVE BANK OF BOSTON 

FOR FLEET/BANK BOSTON MERGER HEARINGS 

July 7, 1999 

150 Oser Avenue, Suite SO0 

Hauppauge, Long Island, N.Y. 11785 

Tel: (516) 435-4710 l Fax: (516) 435-4751 
My name is Jim Morgo. I am President of the Long Island 

Housing Partnership. The mission of the Long Island Housing 

Partnership is to provide housing opportunities for those who, through 

the unaided operation of the marketplace, would be unable to afford 

decent and safe homes. 

The Long Island Housing Partnership is a private-sector 

initiative that invests private and public funds and offers expertise to 

create housing, which in turn, spurs economic development and 

neighborhood revitalization. 

The Housing Partnership is the nation’s first not-for-profit, 

public/private housing development company based solely in the 

suburbs. It is a consortium of Long Island-based business, religious, 

civic, professional, and labor organizations. The Housing Partnership 

builds affordable homes for sale to low-and moderate-income Long 

Islanders; administers down payment assistance programs; rents 

affordable units to low-income Long Islanders; arranges financing for 

socially-worthy housing developments; offers technical assistance to 
. 

community housing groups; and provides free mortgage counseling to 

first-time buyers. 

The Housing Partnership has enabled more than 2,500 low-and 

moderate-income families attain home ownership in high priced Long 

Island. The Housing Partnership’s success is due, in great part, to the 

support of its private sector partners and one of the most involved 

partners is Fleet. 

Fleet (formerly Norstar Bank) was one of the founding 

members of the Housing Partnership. As a founding member, Fleet 

committed $10,000 per year for the first three years of our operation. 

Even after its three-year commitment expired, Fleet continued its 

support through the payment of annual dues and the authorization of 

additional grant funds. 

Fleet co-sponsors educational seminars in mortgage counseling 

and financing for first-time homebuyers. 

Fleet serves as host for LIHP’s monthly Board of Directors 

meetings. 
l ^ . 

Fleet has provided construction financing for several of our 

affordable housing projects (both to LIHP directly and to its general 

contractors). In addition, Fleet Mortgage has provided end loans to 

many of our first-time homebuyers. 

Fleet has acted as escrow agent for LIHP’s New York State 

Housing Development Fund loan without any service charge. Further, 

Fleet has consistently waived its service fees for LIHP accounts. 

In short, Fleet has been a dedicated Housing Partnership 

member. Fleet is a responsible financial institution that is committed 

to community service. 
OPENING DOORS TO 

HOME OWNERSHIP 
OPENING DOORS TO 

HOME OWNERSHIP