News of Bank of America’s deal for FleetBoston Financial sent shock
waves across Fleet’s footprint that were felt by investors to checking account
holders, employees to Fleet corporate partners.
Left absorbing the $47 billion mega-acquisition were also hundreds
of nonprofit organizations in the region. In Rhode Island alone, Fleet donates
$2.5 million a year to 450 organizations, and is the largest financial supporter
of the Rhode Island chapter of the United Way.
Corporate officials at Bank of America and Fleet have pledged to keep philanthropic
lending levels. Fleet CEO Chad Gifford, who will become chairman of Bank of
America, went a step further to say that he will be disappointed if donations
in the Fleet territory do not grow in the future.
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Neil Steinberg, chief executive officer of Fleet Rhode Island, said, “The
attraction (for Bank of America) was buying the local markets. We can’t afford
to turn around and not support the local community.”
That was good news for Dennis Murphy, president and CEO of United Way of Rhode
Island. FleetBoston has been the single-largest financial supporter of United
Way of Rhode Island over the years, contributing $1 million a year most recently.
“FleetBoston has been a major financial supporter, and that’s a combination
of corporate and (Rhode Island) employee giving,” said Murphy.
Fleet has also contributed in other ways, he said – John Nixon, executive
vice president of Fleet’s consumer branch division, is on the board of directors
and also a senior volunteer and chair of the United Way campaign this year.
“It transcends the financial,” Murphy added.
Although the United Way of Rhode Island is unfamiliar with the inner workings
of Bank of America, Murphy is optimistic that the bank will want to continue
the philanthropy and community involvement when the merger is complete. The
bank has a reputation for its community involvement, he said.
“We’ve got a very good situation here that, on behalf of the community, we’re
interested in seeing continue,” he said. “I’m optimistic that the tradition
of involvement, which has been a hallmark of Fleet, will continue to be a hallmark
of Bank of America.”
Only time will tell how interested the Charlotte-based bank will be in Rhode
Island, Murphy said, but there’s always risk – and opportunity – in change.
“If I was investing almost $50 billion, I’d be concerned to do what I needed
to do to be a good corporate citizen and contribute to the community,” he said.
“They have a history of involvement and (I would think) they’d be concerned
to still be viewed that way.”
– Staff writers Laura Ricketson and Mike Colias contributed to this report.
