Congresswoman Barbara Lee hosted a public hearing to receive testimony from residents of the Ninth U.S. Congressional District, community-based organizations and community leaders on the impact the Golden West Financial - Wachovia merger could have locally and to hear from Wachovia regarding its commitments to California and the local community.
   The meeting took place at the federal building in Oakland and featured Ranking Member of the House Financial Services Committee, Congressman Barney Frank (D-MA).
    Dozens of community leaders and residents attended.
   “It is critical that we make sure that this merger truly benefits California and the East Bay, particularly communities that have been traditionally underserved by financial service institutions,” said Lee. “I am committed to making sure that everyone from our community has a seat at the table and has their voice heard, and that’s what this forum today is about.”
    As the most senior Democrat on the House Financial Services Committee, Congressman Frank brought a significant amount of insight and experience to the meeting. Frank played a key role in getting Bank of America to make a significant commitment to Boston when it acquired Boston-based Fleet Bank in 2004.
   “I am glad to join Congresswoman Barbara Lee, and to work with her to ensure the Community Reinvestment Act is fully implemented,” said Frank.
    Since the merger was announced, Lee has been working to ensure that the merger is a win-win proposition for Wachovia, for the East Bay and for California. She led a group of Representatives in writing to Wachovia CEO, Ken Thompson, and organized meetings between Wachovia representatives and local stakeholders to address concerns such as establishing and expanding branches in underserved communities; ensuring diversity of top executives, board members and suppliers; implementing an economic development plan for California and the East Bay; and developing a Community Reinvestment Act plan for California.
    Wachovia recently announced that it would establish its western regional headquarters in Oakland, addressing one of the concerns raised in the meetings with Lee and stakeholders.
    Wachovia is the 4th largest bank and has promised $150 billion over ten years in loans and mortgages, up from a $120 billion pledge.
   “Bank of America is five times larger,” said Michael Rizer, a spokesman for Wachovia, “so it’s unfair to compare us to what they may be doing. But we will make the community better.”