New England Political Backlash Continues to Build against B of A

By Paletta, Damian | American Banker, August 27, 2004 | Go to article overview

New England Political Backlash Continues to Build against B of A


Paletta, Damian, American Banker


Bank of America Corp.'s recent moves in New England are getting flak -- from calls for specific sanctions to the possibility of tougher rules for approving bank deals.

The Charlotte company, which bought FleetBoston Financial Corp. in April, laid off hundreds of employees in New England last week and is moving its small-business and Latin American banking divisions out of Massachusetts.

State officials had not expected the moves and said B of A executives had promised to maintain job levels to secure support for the $46 billion deal.

Rep. Barney Frank of Massachusetts, the ranking Democrat on the House Financial Services Committee, said Thursday that the rules regulators use to judge bank merger and acquisition deals should be toughened to consider things like job cuts.

"The interests of Massachusetts are being essentially disregarded by your overall strategy, and I believe that you have underlined the need for us to reexamine existing statutes, particularly those regarding bank takeovers, such as your takeover of Fleet," Rep. Frank wrote in a letter Wednesday to Kenneth Lewis, B of A's chief executive.

Under the current process "our ability to press for commitments" in the Community Reinvestment Act areas "were greater than our ability to do so in the employment area," Rep. Frank wrote. "Your activities have convinced me that we need to change this situation."

In an interview, he said New England officials were "the victims of some serious fibbing." He also said he has invited Mr. Lewis and other bank executives to meet with the Massachusetts congressional delegation as soon as possible.

"Tea will not be served," the lawmaker quipped.

His call for tougher laws unsettled one banking lawyer who works on mergers and agreed to speak on the condition of anonymity.

"The real danger of this is that it will encourage states to impose tighter and tighter commitments from banks during the merger process," the lawyer said. "If B of A doesn't live up to the commitments, they will have done a real disservice to other banks."

A spokesman for B of A said it is not reneging on its commitments. Though it conducted layoffs last week, it plans to add positions elsewhere in New England, he said.

"We're in the middle of the process," the spokesman said. "Let's not stop and say, 'What's the final score?' "

He would not confirm the total job cuts but said B of A would have the same number of employees in New England by the end of the integration, which could be several years away.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

New England Political Backlash Continues to Build against B of A
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.