WASHINGTON - The Federal Reserve Board has approved interstate acquisitions by BankAmerica Corp. and United Missouri Bancshares Inc. One Fed member dissented on United Missouri.
San Francisco-based BankAmerica got unanimous approval to buy First Gibraltar Bank, the largest thrift in Texas.
BankAmerica's Texas bank, seventh-largest in the state, with $4.2 billion in deposits, would add $6.2 billion and control 6.9% of Texas bank and thrift deposits.
Five Takeovers Permitted
Meanwhile, United Missouri, Kansas City, was permitted to take over five banking companies in Kansas: M-L Bancshares Inc. of Wichita, Highland Bancshares Inc. of Topeka, North Plaza Bancshares Inc. of Topeka, Bellcorp Inc. of Manhattan, and NBA Bancshares of Salina.
Governor Lawrence Lindsey opposed the takeovers on the ground that United Missouri did not meet standards for lending to poor- and middle-income borrowers.
United Missouri has $5.3 billion in assets and controls 20 banks in Illinois, Missouri, Delaware, and Colorado. Upon completing the deal, it will become the fifth-largest bank in Kansas, with deposits of $453 million.
No Word on Price
In its announcement of the BankAmerica decision, the Fed gave no details on the price paid by BankAmerica.
Published reports had indicated that Gibraltar's owners - McAndrews and Forbes Holdings, controlled by New York investor Ronald Perelman - hoped to receive as much as $800 million.
The Fed noted that several objections had been entered into its record on the deal.
Some Complaints Made
There were allegations "that First Gibraltar discriminates on the basis of race in its lending in Texas and that Bank of America failed to provide data" on its mortgage-lending practices.
Another critic said BankAmerica had a poor record of hiring black executives, but the Fed said its examinations of BankAmerica and First Gibraltar found no evidence of illegal discrimination.
The Fed said that since BankAmerica acquired Security Pacific Corp. eight months ago, becoming the second-biggest U.S. banking company, BankAmerica "has demonstrated steady progress in fulfilling the commitments it made" to meet standards for lending to low- and middle-income borrowers.