Good afternoon My name is Rafael Sanchez and I am

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 between large financial have resulted in the following: l 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 l l . in customer in financial l local Hispanic chambers It is distressing to learn from the Greenlining to BofA/Nations statistics in regards (it is estimated l 1% of all contracts Asians Americans. 1% or less, of total African American, were awarded to African Americans, Latinos, or l dollar volume of all business Latinos, or Asian Americans. loans were made to l Less than + of 1% of pre-tax Americans, earnings were contributed non profits. to African Latino, or Asian American l Less than 3% of the total . dollar volume of conventional home loans were made to African Americans. (by salary) are African l 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 Institute) (IS specific 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 record, 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 NATIONAL 4805 ASSOCIATION l FOR THE ADVANCEMENT BALTIMORE, MD OF COLORED l PEOPLE MT. HOPE DRIVE 21215-3297 (410) 358-8900 WEISI MFUME President 8 Chief ExecufrVe Officer JULIAN BOND Chair Board ol Direcrors TESTIMONY BY TAMMY D. HAWLEY . NAACP REPRESENTATIVE BEFORE THE FEDERAL RESERVE BOARD NATIONS/BANKAMERICA SAN FRANCISCO, PUBLIC MEETING CALIFORNIA 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, empowerment. Many of the communities the NAACP 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 mainstream, 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 consumer development, and business development The NAACP Community Development Resource Centers were established in 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 the NAACP 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 commitment and advanced in in development through investment 3 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 focus counseling, economic advocacy and technical in the areas of needs assessment, product development, marketing, lending practices, strategic planning and product and service delivery. Regarding,the . proposed acquisition of Bat&America Corporation by NationsBank Corporation, 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. Successful 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. resulting $350 billion by a to community development 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. 4 The restoration will require and maintenance development of the economies strategies, of underserved supportive communities services, and coordinated intensive increased access to equity investments billion commitment, It is our understanding to be undertaken communities opportunity with appropriate and loans for development follow-through, activities. 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.