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Black Business Groups in Florida Launch Campaign Against NationsBank Merger

Strategic Insights

— 2 min read

A coalition of black business groups in Florida has joined forces to block the proposed merger between NationsBank and BankAmerica, citing NationsBank's failure to keep its promise to increase lending to minorities in the state. The group, called the Coalition, has written a letter to the Federal Reserve Bank of Richmond requesting a 30-day extension on the comment period to allow for hearings in Florida. The Coalition claims that NationsBank reneged on its commitment to invest $1.4 million in black business investment corporations, which would have secured matching funds from the state. The group's concerns come after NationsBank's enthusiasm for supporting minority lending reportedly waned since the approval of the Barnett deal last year.

Key Takeaways:

  • The coalition, consisting of approximately 20 black business associations, has launched a campaign to derail the NationsBank and BankAmerica merger.
  • NationsBank is accused of reneging on a promise to increase lending to minorities in Florida.
  • The Coalition claims that NationsBank failed to keep its commitment to invest $1.4 million in black business investment corporations, which would have secured matching funds from the state.
  • Inez Long, president of the Central Florida company, stated that the corporations were unable to secure matching funds due to NationsBank's decision to lend the money instead of investing it.
  • Gregory Hobbs, executive director of the Florida Black Business Investment Board, claimed that NationsBank has lost its enthusiasm for supporting minority lending since the approval of the Barnett deal last year.
  • NationsBank spokeswoman Jerri Franz declined to comment on the Coalitions' claims.
  • Belk Inc. reported healthy gains in sales and operating income, with a 10.7% increase in operating income to $107.3 million and an 11.3% increase in sales to $1.97 billion.
  • Paxson Communications named Glenn Haygood as the general manager of WGPX TV-16 in Greensboro, coming from his previous role as national sales manager for WXII-TV in Winston-Salem.

Statistics:

  • $1.4 million: The amount NationsBank promised to invest in black business investment corporations, but instead lent to them.
  • 10.7%: The increase in operating income at Belk Inc. for the year ending Jan. 31.
  • 11.3%: The increase in sales at Belk Inc. for the year ending Jan. 31.
  • 585: The number of shareholders Belk Inc. has since consolidating its 112 operating companies into a single corporation last month.
  • 30 days: The extension the Coalition requested on the comment period for the NationsBank and BankAmerica merger.

Sources:

  • "Black business groups in Florida protest NationsBank merger" (exact source not specified)
  • "Belk Inc. Reports Strong Gains in Sales and Operating Income" (exact source not specified)
  • "Paxson Communications Names Glenn Haygood General Manager of WGPX TV-16" (exact source not specified)

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