Obama, Durbin : Bank of America Meeting
Obama, Durbin seek bank meeting
STATE | Worried about possible negative effects of Bank of America buying LaSalle
September 15, 2007
BY FRANCINE KNOWLES fknowles@suntimes.com
U.S. Sens. Barack Obama and Richard Durbin asked Friday to meet with Bank of America Chief Executive Kenneth Lewis amid concerns about the potential harmful impacts the bank's planned purchase of LaSalle Bank could have on the state.
But given that the deal won regulatory approval from the Federal Reserve the same day, what impact that meeting will have -- if it takes place -- is uncertain.
But given that the deal won regulatory approval from the Federal Reserve the same day, what impact that meeting will have -- if it takes place -- is uncertain.
The Federal Reserve's approval of the $21 billion acquisition was the last major regulatory hurdle Bank of America faced in connection with the acquisition.
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A security guard exits a LaSalle Bank branch in Chicago.
(AP)
The Federal Reserve's approval of the $21 billion acquisition was the last major regulatory hurdle Bank of America faced in connection with the acquisition.
The senators sent a letter Friday asking for a meeting with Lewis and other senior executives to discuss the acquisition's impact on jobs, competition, community reinvestment and philanthropy.
Last month a local coalition of religious, union and community groups released a report contending the acquisition would result in the net loss of more than 10,500 jobs. It projected as many as 3,900 of 4,000 jobs at LaSalle's Chicago headquarters, most of them high-paying, would be cut. The group also voiced concerns that Bank of America would cut local investment and philanthropy and hurt competition here.
It has been seeking a commitment from Bank of America to preserve jobs and maintain current philanthropic giving levels similar to what the bank did when it acquired FleetBoston Financial Corp. in 2004.
Bank of America spokesman Scott Silvestri couldn't say whether a meeting will take place with Lewis and the senators.
"We have been in touch with their offices, and we expect that there is going to be ongoing dialogue," he said. "No meeting has been set at this point."
The meeting request follows earlier communication by Durbin's office with Bank of America regarding the merger, a Durbin spokeswoman said.
The coalition criticized the Federal Reserve's approval of the sale Friday. The group had unsuccessfully attempted to get the Federal Reserve to hold a public hearing on LaSalle's acquisition. The agency has done so with other mergers.
The coalition has called for a congressional hearing. There are no plans for a Senate hearing at this point, said spokespersons for Durbin and Obama.
A community hearing led by Congressman Luis Gutierrez and Illinois Treasurer Alexi Giannoulias on the acquisition will take place today at 1 p.m. at Chicago Temple, 77 W. Washington in Chicago.
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I wonder what this is about?
http://www.suntimes.com/business/558327 ... 15.article
