Fleet/BankBoston
The times they are a changin’ again. Rhode Island’s banking community, which has seen mergers, acquisitions, and a credit union crisis, will again undergo a major shift, as Fleet Financial acquires BankBoston and in the process sells off about 40 Fleet and BankBoston branches in Rhode Island, 270 overall – and eliminates 5,000 positions.
Citizens Bank may be among the suitors for the branches, but not those in Rhode Island, according to officials of that bank who say federal regulators might have some concerns about competitiveness if Citizens adds another 40 branches in the Ocean State. Citizens will certainly look carefully at the 230 or so branches that become available outside Rhode Island.
Smaller community banks might show some interest, along with the possibility that a major player from outside the region could see this as an opportunity to establish a franchise here.
In the initial days after the announcement both Fleet and BankBoston were upbeat, talking about the advantages and minimizing the impact of any job losses. The Boston Globe has called this “one of the biggest hits to the local banking industry in years.”
Rhode Island is a likely target for a substantial number of lost jobs, with the banks focusing on the elimination of duplicative activities. Each bank maintains substantial call centers in Rhode Island.
The banks say that the actual number of employees who lose jobs will be less than the 5,000 because of attrition. And analysts suggest that if you are to lose a job, it probably is best in this type of employment climate.
But that’s all rhetoric. Each person who loses a position will face the difficult task of rebuilding their careers. And they have reason to be concerned, based on past history and the manner in which Fleet treated those employees who lost their positions during Fleet Focus. We would expect something different this time.
The banks need to provide job counseling and other services to those employees who will be displaced, letting them leave with dignity and hope.
And we expect when the dust settles on this transaction and transition, two or three years from now, the new Fleet Boston will be ready for another deal.
These are the ways of mega-banking. To survive – and thrive — you either establish a niche, as the smaller community banks have, or consolidate.
We only hope that the consumer remains a paramount concern – that any new rates are reasonable rates that the market will accept, not what it will bear; that they keep their promises about maintaining levels of charitable giving; and that they try to minimize the impact of any layoff.
As Rhode Island’s banking community changes again, we hope that the consumer, the employees, the community and the charitable entities retain a high priority as Fleet and BankBoston structure what will be among our nation’s largest banks.
Senator Chafee
After more than 40 years of public service, U.S. Senator John Chafee has decided to step down, leaving a legacy of public service to this state the equal of which is hard to find.
It is the same standard, though, the same dedication shared by two former senators, both Democrats, Claiborne Pell and John O. Pastore. Along with Chafee they form a triumvirate that has brought this state recognition beyond its size. And all three have played on the national stage, leaving their mark on the arts, the environment, and elsewhere.
Each brought his own identity: Pastore, the fiery orator and first Italo-American in the U.S. Senate; Pell, the aristocrat from Newport whose passion became the arts and Pell educational grants, and who was chair of the prestigious Senate Foreign Relations Committee; and Chafee, the moderate Republican who remains often an independent and strong voice for that which he believes to be true, and who has left his mark on environmental issues.
Chafee — senator, governor, secretary of the Navy — will be recognized for his independence, without fear of repercussions; for his support of the business community; for his contributions to preserving the environment; and for his integrity..
We salute Senator Chafee for more than four decades of outstanding public service.
