Bank of America Corp., which plans to
buy FleetBoston Financial Corp. for $47 billion, pledged to lend
and invest $750 billion over 10 years in low- and moderate-income
communities, the largest commitment by a U.S. financial
institution.
The new goal will replace current programs at both banks,
said spokeswoman Eloise Hale. About $100 billion of the total
will be earmarked for the Northeast, a territory the Charlotte,
North Carolina-based bank is entering with the FleetBoston
purchase.
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Financial institutions are required by the 1977 Community
Reinvestment Act to meet the credit needs of all areas they
serve, including poor neighborhoods and small businesses. When
mergers are pending, lenders often seek to gain community support
and fend off critics by increasing their lending plans.
“We looked at the growth that we planned to have in our
markets — and just our sheer size — and came up with this
number,” said Bank of America Chief Executive Officer Kenneth
Lewis in a telephone interview. “Whether it’s in small business
or whether it’s low- and moderate-income individuals, you look
for opportunities and take advantage of every one.”
Bloomberg News
