In Chicago, B of A Puts on the Dog for the Donkey

BankAmerica Corp. polished its political image this week at the Democratic National Convention, feting senators and winning praise from key members of the party.

The company's presence was felt at a Tuesday evening reception it sponsored for the Senate Banking Committee's three female members: Barbara Boxer of California, Carol Moseley-Braun of Illinois, and Patty Murray of Washington.

While Bank of America is in 40 states, those three are at the heart of its operations.

In the Grand Banking Hall of Bank of America Illinois' historic La Salle Street building, amid towering columns and Jules Guerin frescos symbolizing the commerce of different countries, political types and more than 200 corporate customers sipped cocktails and listened to a jazz quartet.

"This is a good thing," BankAmerica chairman David A. Coulter said. "We managed to get a real spectrum of people who are involved with the banking industry."

Lest the lavish affair lead anyone to think BofA does this sort of thing frequently, Mr. Coulter added, "We have to keep in mind the value of these events to our shareholders."

This year's Democratic convention was a lot better for bankers than 1992's, when former New York Gov. Mario Cuomo blamed "greedy bankers" for the saving and loan crisis.

But party officials did make it clear they will fight banking industry and Republican attempts to roll back the Community Reinvestment Act. At a panel discussion Tuesday on inner-city lending, Treasury Secretary Robert Rubin lambasted the Republican Congress for supporting a weakening of CRA.

"The Community Reinvestment Act has made $96 billion from banks available to the inner city, but Congress has threatened to eviscerate CRA," he said.

Mr. Rubin also attacked Republican efforts to eliminate federally funded programs such as the low-income tax credit and the Community Development Financial Institutions program.

The Treasury secretary did praise a fellow speaker, Bank of America Illinois chairman William Goodyear, for using federal programs to increase inner-city lending.

Mr. Goodyear said his bank's loans in low-income Chicago neighborhoods will rise to more than $400 million this year from $332 million in 1995. "The low-income tax credit and the CDFI programs have proven to be very effective vehicles," he added.

The Democratic drumbeat for community lending was heard at other events. Interviewed at receptions early in the week, senior House Banking Committee members John LaFalce of New York and Bruce Vento of Minnesota said Democrats will block regulatory relief legislation if it allows banks to merge without a federal review of CRA compliance.

On the convention floor Tuesday night, Rep. Cleo Fields of Louisiana, a member of the House Banking Committee, said, "I would like to see us strengthen CRA. A lot of banks don't follow the rules now."

Those were discouraging words to bankers who consider CRA an unfair burden, but bankers and their lobbyists were still happy to entertain Democrats during the four-day event.

In addition to BankAmerica, five major companies - First Chicago NBD, J.P. Morgan, Household International, Harris Bankcorp, and LaSalle National - donated more than $100,000 each to Chicago '96, the local nonpartisan group sponsoring scores of convention events and lining up volunteer workers.

The American Bankers Association sponsored a golf tournament for the Democratic Congressional Campaign Committee on Monday. The Mortgage Bankers Association of America and the National Association of Realtors sponsored a party at the stately Chicago Cultural Center for Democratic candidates who hope to defeat Republican senators.

Visa and Northwest Airlines, which market a cobranded Visa card, invited delegates from Michigan, Minnesota, and Tennessee to hear a rhythm and blues band.

The Washington law firm of Williams & Jensen, which lobbies for First Union Corp., rented a downtown club, Buddy Guy's Legends, for Democratic members of both the House Banking and Commerce Committees. On Wednesday, Chase Manhattan Corp. held a lunch for women in Congress at the exclusive Chicago Club.

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