Native Hawaiian Bank -- How Bumpy Kanahele and Activists Seeking Reparations for Slavery are Blackmailing Bank of America as it Seeks to Merge With FleetBoston; followup coverage as Bumpy continues to publicize his concept of a Native Hawaiian Bank

SUMMARY

Ethnic Hawaiian sovereignty activist (and convicted felon) Bumpy Kanahele is attacking Bank of America during its merger negotiations with FleetBoston in hopes of forcing BofA to “donate” money to establish a Native Hawaiian Bank. In 1992 Bank of America bought the assets of Hon Fed Bank and entered the Hawai’i market. BofA remained in Hawai’i for only 5 years, selling out to American Savings Bank in 1997. During those 5 years BofA was accused of discriminating against ethnic Hawaiians in mortgage lending, because it refused to write mortgages for homes on the racially exclusionary Hawaiian homelands where all land is leased and mortgage foreclosures would be nearly impossible. For many years Jesse Jackson and other black activists were very effective at extorting huge "settlements" of money and political power from large corporations by using claims for racial discrimination in customer service, employee hiring, and promotions. Black activists have become aggressive in filing lawsuits against companies, seeking reparations for slavery. Lawsuits against corporations are especially likely to be settled on terms favorable to the plaintiffs when the corporations are engaged in mergers and acquisitions. When the famous bank robber Willy Sutton was asked why he robbed banks, he answered, “That’s where the money is.” Thus it is not surprising that a merger of two large banks is seen by black activists as a golden opportunity to extort money as reparations for slavery. Ethnic Hawaiian activists are now starting to follow the lead of mainland black activists in playing this same game of corporate extortion.

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In 1992 Bank of America bought the assets of Hon Fed Bank and entered the Hawai’i market. BofA remained in Hawai’i for only 5 years, selling out to American Savings Bank in 1997.

During those 5 years BofA was accused of discriminating against ethnic Hawaiians in mortgage lending, because it refused to write mortgages for homes on the Hawaiian homelands. The reason it refused is based on sound business practices. The Hawaiian homelands were established by the Hawaiian Homes Commission Act of 1921, as reinforced by the Statehood Act of 1959. The Hawaiian homelands are government trust lands where ethnic Hawaiians of at least 50% native blood quantum can get leases to build homes. Since the land could only be leased but never sold, the land could not be used as collateral for loans. And since the homes themselves could only be sold to native Hawaiians with 50% native blood quantum and whose names had risen to the top of a very lengthy waiting list, it would be impossible for banks or other lending agencies to be effective in foreclosing on delinquent loans and selling the assets. Therefore BofA and other banks refused to give mortgage loans on Hawaiian homesteads.

For many years Jesse Jackson and other black activists were very effective at extorting huge "settlements" of money and political power from large corporations by using claims for racial discrimination in customer service, employee hiring, and promotions. Lawsuits against corporations are especially likely to be settled on terms favorable to the plaintiffs when the corporations are engaged in mergers and acquisitions, because due dilligence for a merger or acquisition requires that all liabilities must be fully disclosed and given dollar valuations. Thus, it would cripple a merger or acquisition for there to be a lawsuit that could take years to resolve, could be very expensive to litigate, and could have potentially huge financial damages to a company. Black activists have become aggressive in filing lawsuits against companies, seeking reparations for slavery. The perfect time to file such lawsuits, or to publicize the possibility of filing them, is when a company is trying to merge or be acquired.

When the famous bank robber Willy Sutton was asked why he robbed banks, he answered, “That’s where the money is.” Thus it is not surprising that a merger of two large banks is seen by black activists as a golden opportunity to extort money as reparations for slavery. Even if a lawsuit against a bank, demanding monetary damages for slavery, has little chance of succeeding in court on the merits, the fact that such a lawsuit has been filed or might be filed could make it impossible for the merger to go forward. Therefore the banks have a large incentive to settle such a lawsuit out of court if it has already been filed, or to pay blackmail to prevent the suit from being filed. The activists know this, and time their extortion demands accordingly. Ethnic Hawaiian activists are now starting to follow the lead of mainland black activists in playing this same game of corporate extortion.

Ethnic Hawaiian activists have often followed the lead of African Americans over the years. The Center for Hawaiian Studies at the University of Hawai'i has followed the pattern of Black Studies departments on the mainland. CHS has become a propaganda factory for the Hawaiian racial grievance industry and a center for the distribution of race-based political patronage and multimillion dollar programs. See:
https://www.angelfire.com/hi2/hawaiiansovereignty/uhacafreechsoctopus.html

The same sort of Marxist ideology and hate-America rhetoric that has dominated the field of Black Studies also dominates the curriculum at the Center for Hawaiian Studies, as illustrated by the writings and speeches of Professor Haunani-Kay Trask. She explicitly uses the inflammatory rhetoric of the early Malcolm X rather than the more conciliatory language of Martin Luther King. See:
https://www.angelfire.com/hi2/hawaiiansovereignty/trask.html

Bank of America came to Hawai’i in 1992 when it purchased the assets of Hon Fed Bank and reopened that bank’s branches under the name “Bank of America.” In 1993-1994 BofA bought another small bank (Liberty Bank). As part of the routine regulatory process for bank acquisitions BofA was required to show that it provides loans to local communities in proportion to deposits from those communities, and that it does not discriminate racially. At that point some Hawaiian activists claimed that since BofA was not writing mortgages for homes on the Hawaiian homelands, it was guilty of redlining or racial discrimination (even though the whole idea of a racially restricted “gated” community like the Hawaiian homelands is a clear-cut example of racial discrimination!). To clear away this obstacle to BofA’s acquisition of another bank, BofA apparently agreed to provide more loans to ethnic Hawaiians.

When Bank of America left Hawai'i in 1997, it sold its assets to American Savings Bank. Once again, BofA came under scrutiny regarding all aspects of its operations in Hawai’i, including racial discrimination, as would any bank seeking to buy, sell, or merge assets. Apparently BofA pledged that even though it would no longer be operating in Hawai’i, it would provide financial and managerial assistance to help establish a "Native Hawaiian Bank" that would be organized under the leadership of Hawaiian sovereignty activist (and convicted felon) Bumpy Kanahele. It is unclear whether such an agreement was actually made, or what the exact language of the agreement may have been.

Mr. Kanahele seems to think he can somehow organize a bank, with FDIC insurance and under U.S. banking regulations, whose charter will guarantee race-based control and management of the bank by ethnic Hawaiians, and whose activities would be focused on home mortgages and business loans for ethnic Hawaiians. It would presumably be illegal for any federally chartered or federally insured bank to place racial restrictions on shareholders, owners, managers, and borrowers; so it is unclear how Mr. Kanahele hopes to proceed under current laws. But of course if the Hawaiian recognition bill passes, then the newly invented tribe could have a tribal bank for which such racial restrictions would be permitted. In the past, ethnic Hawaiians have followed the lead of black activists in formulating ideology and strategies for social activism. But in the future, if the Hawaiian recognition bill passes, black activists (and Hispanic activists such as MEChA) could very well follow the lead of ethnic Hawaiian activists to create a race-based federally-recognized government to negotiate for reparations and to hold assets in a racially restricted bank. See:
https://www.angelfire.com/hi2/hawaiiansovereignty/AkakaHawnChicanoNatnl.html

Below is a series of newspaper articles in chronological order, describing the progress of Bumpy Kanahele’s efforts to establish a Native Hawaiian Bank using money and expertise to be “donated” by the Bank of America, and also describing nationwide issues of black activism in bank mergers regarding reparations for slavery. These newspaper articles have been selected to provide a chronology, and are only a few of many that could be found. The articles are first briefly listed, and then the complete text is provided later in case the URL link goes dead. An article from July 2005 Los Angeles Times is also provided, because it portrays Kanahele as a swashbuckling (criminal) folk-hero in the style of Willy Sutton or Bonnie and Clyde.

(1) In 1992 Bank of America entered the Hawai'i market by buying the assets of Hon Fed Bank. In 1997 Bank of America pulled out of Hawai'i, selling its Hawai'i operation to American Savings Bank. Editorial of May 28, 1997 says BofA departure might be due to its “lack of feel for the local market” [unwillingness to kow-tow to Hawaiian activists?] and might discourage other outside investors from coming to Hawai’i even as it will please local residents to have a bank under local control.
http://starbulletin.com/97/05/28/editorial/editorials.html

(2) The Maui News of June 21, 1999 published a lengthy article describing the concept for a Native Hawaiian Bank and the role of Bank of America in helping to establish it. That article has been saved in the archives of the Nation of Hawai’i Website (Hawaiian sovereignty group led by Bumpy Kanahele).
http://www.hawaii-nation.org/hawaiian-bank.html

(3) Native Hawaiian Bank formed. The Honolulu Advertiser reported on February 28, 2000 that “The Native Hawaiian Bank has raised millions of dollars and will submit an application for a federal charter in June to the Office of the Comptroller of the Currency, which regulates federal banks. ... Bank of America never admitted to discriminating against Hawaiians. But it promised in 1994 to provide $150 million for loans on Hawaiian home lands. ... Dennis “Bumpy” Kanahele, a community organizer for the bank initiative, traveled to San Francisco, where he received underwriter training at the Federal Reserve that he shared with other Hawaiians.”
http://the.honoluluadvertiser.com/2000/Feb/28/localnews4.html

(4) Honolulu Star-Bulletin opinion piece by Bumpy Kanahele on November 23, 2003. On the 10th anniversary of the apology resolution, Bumpy Kanahele complains that Bank of America has not yet fulfilled its “commitment” to provide funding for the Native Hawaiian Bank, and he complains that Governor Lingle is “trying to help BofA off the hook.”
http://starbulletin.com/2003/11/23/business/bizcol.html

(5) January 28, 2004 article in the black activist on-line newspaper sfbayview.com discusses how activists are using mergers of large banks as opportunities to assert demands for reparations for slavery. “On Wednesday, Jan. 14 – the same day of the JPMorgan Chase/Bank One announcement – activists were giving testimony in Boston at the Federal Reserve Board’s hearing on the potential $47 billion merger of FleetBoston Financial Corp. and Bank of America. Both JPMorgan Chase and Fleet are being sued for reparations. And reparations activists are now bringing the battle for reparations to the very core of their opponents’ existence by working to prevent the possibility of their mergers with other banks – mergers that could bring the banks millions in profits.”
http://www.sfbayview.com/012804/bankmergers012804.shtml

(6) The Contra Costa Times (California) of January 30, 2004 reports in an article widely syndicated by Associated Press that the merger of FleetBoston and Bank of America is being attacked by Bumpy Kanahele’s activist group “on grounds Bank of America hasn't fulfilled lending commitments to native Hawaiians.”
http://www.contracostatimes.com/mld/cctimes/7829105.htm?template=contentModules/printstory.jsp

(7) Pacific Business News reports on Friday, February 6, 2004 about “A federal lawsuit filed Friday on behalf of Native Hawaiians seeks to block the multibillion-dollar merger between FleetBoston Financial Corp. and Bank of America until $180 million in lending commitments are met.”
http://www.bizjournals.com/pacific/stories/2004/02/02/daily76.html

(8) The Honolulu Advertiser of February 7, 2004 provides additional details about the plaintiffs in the lawsuit filed February 6, and the history of Bank of America in Hawai’i.
http://the.honoluluadvertiser.com/article/2004/Feb/07/ln/ln03a.html

(9) In mid February 2004 the Honolulu Advertiser, Pacific Business News, and the Honolulu Star-Bulletin published articles describing the hearing on the lawsuit. Judge Ezra indicated he will dismiss the lawsuit because he lacks jurisdiction over the Federal Reserve Board, but he also indicated he wishes he could rule in favor of the plaintiffs.

(10) On February 26, two newspapers reported that Judge Ezra issued his final order dismissing the lawsuit. The judge ruled that he did not have jurisdiction, and also that the plaintiffs did not have standing. Thus, he never ruled on the merits of the case. However, this judge’s bias in favor of demands of the sovereignty activists was quite clear in this case, as in all the other sovereignty-related cases he has handled including the Rice v. Cayetano case where his absurd reasoning was overruled by the Supreme Court, and the more recent Barrett and Carroll lawsuits.

(11) Tuesday, March 9, 2004 the Honolulu Star-Bulletin reported that the Federal Reserve Board of Governors by unanimous vote has approved the merger of Bank of America and FleetBoston Financial Corp. The Justice Department and the Federal Trade Commission previously approved the merger. All that remains is for the shareholders of both banks to approve the merger at shareholder meetings scheduled for March 17, 2004.
http://starbulletin.com/2004/03/09/business/story4.html

(12) On Thursday, July 21, 2005, at the moment when there was vicious behind-the-scenes infighting in the U.S. Senate over whether to bring the Akaka bill to the floor for a debate and vote, the Los Angeles Times published a very flattering story about Bumpy Kanahele and his "Pu'uhonua village" in Waimanalo. The article portrays Bumpy as a folk hero for establishing a toehold of Hawaiian sovereignty. The article condones the hate-America attitude found in parts of Waimanalo, and the anti-white racism. Thus, the article tries to arouse public sympathy for the Akaka bill (even though Kanahele himself opposes the bill). The article seems to express admiration for Bumpy's swashbuckling style; especially his ability to extort a lease of land from the State of Hawai'i government. The tone of this left-wing newspaper seems to condone and admire Kanahele's criminal activities, much like some newspapers did long ago regarding Willy Sutton, and Bonnie and Clyde.

(13) In September 2005 A webpage was created for Bumpy Kanahele to publicize his concept of a Native Hawaiian Bank. He explains how banks leverage deposits by being able to led ten times as much as the bank's assets, while prodiving a federal guarantee to depositors that their deposits will not be lost. Kanahele also provides a point-by-point comparison of the advantages of a Native Hawaiian Bank compared to the Akaka bill's tribe, regarding autonomy and local control and other issues. The URL for this webpage is:
http://bumpykanahele.com/follow_the_money.php
Presumably that webpage will change over time, and perhaps it will simply vanish. To ensure that Bumpy's concept of a Native Hawaiian Bank remains available as a historical curiosity even if the webpage vanishes, a snapshot of the webpage will occasionally be made (all the text will show up, although some decorations or photos might not). The snapshot of the webpage as of September 12, 2005 is at
https://www.angelfire.com/hi5/bigfiles3/bumpybankwebpage091205.html

(14) On September 27, 2005 the Honolulu Advertiser reported that "A group of investors plans to start a new Hawai'i bank that will cater to the growing Korean-American community." Clearly, there is no problem for an ethnic group to create a bank catering to their needs. However, the bank must be open to all races, and there cannot be a racial requirement for owners, directors, shareholders, depositors, or borrowers. Just as clearly, Bumpy Kanahele is either running a scam or trying to impose requirements that are contrary to law.

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Honolulu Star-Bulletin, May 28, 1997

Bank sale could mean stronger competition

MAYBE it was Hawaii's stagnant economy. Maybe it was unrealistic expectations. Maybe it was a lack of feel for the local market. Maybe it was a combination of these factors that produced disappointing returns and impelled Bank of America to sell its Hawaii branches to American Savings Bank after five years of operations here.

For Hawaii consumers, the deal means something unusual -- a mammoth national company giving way to a locally based firm. American Savings is a subsidiary of Hawaiian Electric Industries Inc. The trend has been just the opposite, particularly in retailing. Bank of America entered the Hawaii market by buying a local institution, Honfed Bank.

By acquiring Bank of America Hawaii's 39 branches and assets, American Savings will increase its assets by 50 percent and become the state's third largest financial institution. This will make it a stronger competitor for the two leaders, Pacific Century Financial Corp. (Bank of Hawaii) and First Hawaiian Inc. American Savings' assets will increase to $5.4 billion. Pacific Century has $12.9 billion; First Hawaiian $8.9 billion. The result may be to increase competition even though there will be fewer banks.

If Hawaii's economy had been robust over the last five years, it's doubtful that Bank of America would have decided to pull out. As a sign of Hawaii's continuing economic troubles, the sale is not going to encourage other mainland companies or foreign companies to invest here. Governor Cayetano has encountered considerable skepticism in his efforts to lure investors here during his current trip to East Asia, and the announcement of this sale can only increase that skepticism.

However, Hawaii consumers may find it a plus to have another opportunity to deal with a financial institution that has its headquarters in the islands, not thousands of miles away.

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Something for Native Hawaiians to bank on

The Maui News June 21, 1999

By VALERIE MONSON Staff Writer

KAHULUI -- The First Native Hawaiian Bank?

``It's not that Hawaiians don't have the money, it's that we don't have control of it,'' said Kehau Filimoe`atu, president of Na Po`e Kokua, a Native Hawaiian community development organization on Maui that's trying to establish a statewide Community Development Financial Institution. ``We need a bank to keep the money.''

Many Native Hawaiians who have been awarded long-awaited homestead lots must give up the lots because they don't qualify for conventional bank loans to build homes or to buy pre-existing houses. Frustrated with this situation, members of Na Po`e Kokua have been negotiating with Bank of America Corp. to start a bank that would be owned and operated by Hawaiians.

``That's what we want to do with this bank -- empower the Hawaiians,'' said Tasha Kama, president of the Keokea Hawaiian homesteaders and a director of Na Po`e Kokua. ``We hear all these stories -- that there are so many problems with financing, that the homestead land can't be used as collateral, so we just said, `Let's open our own bank.' ''

That speculation has evolved into an idea that's becoming more solvent all the time.

``It does seem viable if all the pieces can come together,'' said Sandra Perez, Bank of America vice president who was among a group of bank executives who visited Hawaii last year to discuss the project's possibility. ``Our department staff has evaluated this, and they think there's potential.''

Ian Chan Hodges has served as chief negotiator for the project over the last two years, working to get Bank of America to commit $3.5 million of cash and in-kind technical assistance toward the venture. But the bank agreed to those commitments only with contingencies: Na Po`e must convince larger Hawaiian organizations with flush accounts -- ranging from the Bishop Estate to the state Office of Hawaiian Affairs -- to invest in a bank that directly will benefit the beneficiaries.

``Na Po`e can't do it alone nor can we be the only one supporting (Na Po`e),'' said Jim Wagele, senior vice president at Bank of America. ``It's very important that these other Hawaiian organizations see this as viable and see that there's a need. They've got to do more than just sign a letter. They've got to show financial support.''

An early test of local opinion regarding the proposed bank could come Tuesday on Oahu when Na Po`e asks the commissioners of the state Department of Hawaiian Home Lands to pledge $50,000 as a show of confidence.

``We want to take Hawaiian money and use it for Hawaiian purposes instead of putting it in banks that might not be friendly to the needs of Hawaiians,'' said Blossom Feiteira, the only Na Po`e staff worker -- a part-time position.

Filimoe`atu sees the bank as a crucial component to Hawaiian sovereignty.

``As our Hawaiian people pursue greater self-determination, a Hawaiian-controlled bank will be a valuable community resource,'' she said. ``Economic self-sufficiency has always gone hand in hand with true political self-determination.''

If all goes well, the new Hawaiian bank could be chartered and operating before the end of next year. An advisory council of 20 Hawaiian leaders from across the state has just been appointed, including Oahu community organizer Dennis ``Bumpy'' Kanahele; Rep. Sol Kaho`ohalahala of Lanai; former OHA Trustee and Maui fire Chief Herb Campos; and Rose Marie Duey of Maui, who represents Na Kupuna O Hawai`i Nei.

Bank of America executives met with Gov. Ben Cayetano and DHHL officials about the project last August.

``This could be momentous,'' said Charley Villalon, vice president of Na Po`e board. ``The full impact of what No Po`e is capable of doing hasn't yet sunk in. I thought maybe we could get a grant or some kind of financial commitment, but no way could I have imagined a Community Development Financial Institution.''

Nowadays, Villalon not only imagines it, but he's already hoping for the day when the bank can approve home loans, business loans, education loans and other loans to residents who traditionally have been turned away or simply have given up after being bombarded by the strange language of mortgages and the sea of paperwork that goes with borrowing money.

Filimoe`atu wants the new Hawaiian bank to take the time to walk new homeowners through a process that seems mind-boggling and intimidating.

``We want our bank to take that humbug,'' she said. ``We want our bank to go to the trouble and explain everything.''

Jimmy Rust, another director of Na Po`e, knows the odds that Hawaiians face when they fill out applications for conventional loans.

``Our people don't have the high-level paying jobs, and it's hard for them to qualify,'' he said. ``I can't think of anything better than helping someone to get a home.''

Wagele admitted that banks often lose focus of the goal of helping a good family without much capital attain the American dream.

``That's what banking is supposed to be about,'' he said. ``Traditionally, banks have not been fully responsible'' to neighborhoods with low or moderate incomes.

So Community Development Financial Institutions have sprouted up in those communities with local leaders better able to relate to those seeking loans and able to identify particular needs or cultural concerns. Several such banks owned and operated by Native Americans on the Mainland and in Canada have proved successful in revitalizing communities there.

Filimoe`atu stressed that, if the Hawaiian bank becomes a reality, it won't be passing out free cash. The institution will have to be sound -- and profitable.

``The bank won't be here to give Hawaiians money,'' said Filimoe`atu. ``It's to loan money. It won't be giving out grants.''

Neither will the loans be limited to Hawaiians. The bank will do business with anyone, but it will be owned and operated by Hawaiians.

To prepare for establishing such a venture, Bank of America has underwritten the costs for Filimoe`atu to participate in intensive training sessions on the Mainland over the last 13 months. A former owner of a travel agency in Lahaina, Filimoe`atu was familiar with the complicated world of finance and business but was nowhere near ready to kick-start a bank.

At about the same time, she also was offered a homestead lot at the planned subdivision in Waiehu Kou which, in a way, emphasized the need for a bank willing to go out of its way to help Hawaiians: Filimoe`atu had been No. 2,046 on a list for just 99 lots, which meant that more than 1,900 other Hawaiians didn't want their award or couldn't qualify for conventional loans to build.

``For me, it was bittersweet,'' said Filimoe`atu. ``I mean, it was so exciting to get a lot but I told my mother, `Ma, this is so sad because so many people had to give them up.' ''

Filimoe`atu believes the new bank simply will be filling a need -- and not taking away business from existing banks.

``We would be working with a part of the community that's not being served,'' she said.

Five years ago, no one would have believed that Bank of America -- then accused by Chan Hodges and others of discriminating against loan applicants in Native Hawaiian and Filipino neighborhoods -- would be the catalyst to creating a Hawaiian-controlled bank.

``Back then, things were pretty contentious between us,'' said Chan Hodges. ``But since we've been working together, our relationship has gotten to the point where I've been invited to one of the bankers' weddings in July. It's good to see that big corporations can actually do good. They've been really honorable about this whole thing.''

Through the efforts of Chan Hodges and others, Bank of America was pushed to commit $150 million in mortgage loans to homesteaders. The Federal Reserve Board ordered executives to make good on that promise as part of approving Bank of America's merger with Nations Bank.

Since then, Bank of America has pulled out of Hawaii, but before leaving, it agreed to continue its previously arranged mortgage program. The program has moved slowly, Wagele says, because in order to make the mortgages available, the developer working with Bank of America's firm must win the bid.

After meetings with Chan Hodges and members of Na Po`e, bank executives also came to see potential in what many local officials view as a fly in the ointment: homestead lands.

``They saw we had 16,000 people on the waiting list,'' said Feiteira. ``I think that's what really opened their eyes. They (Bank of America executives) saw the need to get out in the community and work with the Hawaiians. They came to Hawaii, they met with our kupuna, they did site visits -- all of which is unheard of in the banking community.''

As part of a nationwide campaign to assist community development projects, Bank of America also is considering the possibilities of loans for Hawaiian-owned enterprises and small businesses, especially those on or near the home lands.

In Na Po`e, executives found Hawaiian grassroots leaders long concerned about the plight of their people. The organization was born in 1992 in response to a cry from a group of Maui kahu (religious leaders) for more affordable housing for Hawaiians. More recently, Na Po`e was instrumental in the development taking place now at the homesteads in Waiohuli and Keokea.

Its board of directors represents a wide range of political points of view. Filimoe`atu admits she and fellow board member Rust are miles apart in their opinions regarding the extension of the Kahului Airport runway. But they put their philosophical differences aside when it comes to Na Po`e projects.

Now they face the next step of taking their hopes and plans to the larger Hawaiian community.

``We can provide resources and we can provide support in the start-up phase,'' said Wagele. ``But the ball is now in their court. If the larger Native Hawaiian community doesn't support the concept, no matter what we do, it will fail.''

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(3) Native Hawaiian Bank formed. The Honolulu Advertiser reported on February 28, 2000 that “The Native Hawaiian Bank has raised millions of dollars and will submit an application for a federal charter in June to the Office of the Comptroller of the Currency, which regulates federal banks. ... Bank of America never admitted to discriminating against Hawaiians. But it promised in 1994 to provide $150 million for loans on Hawaiian home lands. ... Dennis “Bumpy” Kanahele, a community organizer for the bank initiative, traveled to San Francisco, where he received underwriter training at the Federal Reserve that he shared with other Hawaiians.” http://the.honoluluadvertiser.com/2000/Feb/28/localnews4.html

The Honolulu Advertiser, Monday, February 28, 2000

Native Hawaiian bank formed

By Frank Cho Advertiser Staff Writer

A grass-roots group on Maui that wants to help Hawaiians own their own homes has teamed up with one of America’s biggest banks to create the state’s first financial institution owned and operated by Hawaiians.

The Native Hawaiian Bank has raised millions of dollars and will submit an application for a federal charter in June to the Office of the Comptroller of the Currency, which regulates federal banks.

“Basically what we are trying to do is give Hawaiians the opportunity to control their own resources and their assets,” said Kehaulani

Filimoe‘atu, president of Na Po‘e Kokua, a Hawaiian community-based nonprofit group helping to organize the bank.

Bank of America, which was accused of discriminating against Hawaiians in 1993, has agreed to provide $3.5 million. The rest of the money is expected to come from federal matching grants and private foundations.

“We believe it can be a profitable business,” said James Wegele, senior vice president for community development banking at Bank of America.

Thousands of Hawaiians are on waiting lists for land administered by the state Department of Hawaiian Home Lands. Although they pay just $1 a year for a 99-year lease, many cannot qualify for conventional financing to build their homes from Hawaii’s commercial banks. Some are reluctant to lend money to Hawaiians on property that cannot be foreclosed and sold.

Bank of America never admitted to discriminating against Hawaiians. But it promised in 1994 to provide $150 million for loans on Hawaiian home lands.

“Bank of America is still trying to achieve its $150 million goal. The creation of this bank is a vehicle to be more effective in meeting the needs of Native Hawaiians,” Wegele said.

The bank will be modeled on similar institutions created for Native Americans on the Mainland and on community development banks in inner-city neighborhoods.

Based on Maui, it will serve Hawaiians as well as moderate- and low-income families of all races. Wegele, who will retire from Bank of America on June 1, is expected to become the chief executive officer. Chase Manhattan Bank, which will provide trust services, is a partner in the venture.

Bank ownership issues are being worked out, Wegele said. But plans call for shares in a nonprofit holding company to be issued to Native Hawaiians, who can then vote their shares. Bank of America will have a minority stake.

The bank eventually will begin to accept deposit accounts and provide small business loans.

Despite the substantial land and financial resources held in trust for Hawaiians, many are consistently at the bottom of Hawaii’s social and economic ladder.

“Housing is a big issue for everyone in Hawaii, but Hawaiians have half of that problem licked — namely land,” Filimoe‘atu said.

Dennis “Bumpy” Kanahele, a community organizer for the bank initiative, traveled to San Francisco, where he received underwriter training at the Federal Reserve that he shared with other Hawaiians.

“It makes good sense to create a financial institution that we can finally call our own,” Kanahele said. “With your own bank, you start to raise people’s confidence and credibility.”

Paul Homan, a career federal banking regulator and former special trustee for American Indians, is helping to prepare the charter.

“The credit and banking needs are not being met by the local institutions,” said Homan, now an independent banking consultant. “If all goes well, we hope to open the bank by the end of the year.”

Homan said the Native Hawaiian Bank would like to establish a relationship with the state, whereby it could manage some, if not all, of the Hawaiian trust assets through its trust partner, Chase, and be subject to federal banking oversight.

“We are not here to become another big bank. We are here to become a community development bank that would be able to serve the Hawaiian market well,” Filimoe‘atu said.

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Anniversary raises questions about financial promises to Hawaiians

By Bumpy Kanahele

Today we commemorate the 10th anniversary of the signing into law of the "Apology Bill" by President Bill Clinton. U.S. Public Law 103-150 declares that "it is proper and timely for the Congress, on the occasion of the impending one hundredth anniversary of the event, to acknowledge the historic significance of the illegal overthrow of the Kingdom of Hawaii [and] to express its deep regret to the Native Hawaiian people."

As President Clinton apologized then for actions taken by the U.S. government over a century ago, Gov. Linda Lingle should apologize today for certain actions of her administration over the past 100 days.

Here's why:

In 1994, Bank of America was ordered by the Federal Reserve Board, as condition of approving its acquisition of Liberty Bank, to provide $150 million in mortgages on Hawaiian homelands by 1998. When the deadline arrived five years ago, Bank of America had completed 2 percent of its Hawaiian commitment. This gave our Hawaiian people major leverage when BofA sought federal permission to merge with NationsBank.

The end result? After bank executives flew to Hawaii to meet with our kupuna, it was agreed that if the merger were approved the new Bank of America would immediately complete its Hawaiian commitment and would pay a "late fee" of nearly $4.5 million

This month, Bank of America is once again asking the Federal Reserve for permission to grow larger, this time by acquiring FleetBoston for $47 billion. And once again, the Hawaiian people have leverage because Bank of America still has $120 million remaining its Hawaiian commitment. But when BofA execs made another pilgrimage to Hawaii this month, they felt comfortable ignoring the kupuna and met behind closed doors with the Lingle Administration, seeking to smooth the way for federal approval of the Fleet acquisition.

The Lingle administration engaged in this back-room dealing after numerous public assurances that the kupuna would take the lead in negotiating with Bank of America. The terms of the Hawaiian settlement with Bank of America were to include upwards of $20 million to capitalize the creation of a Hawaiian-owned trust bank.

The Lingle Administration had met previously with Bank of America in March, exactly three weeks after Big Island Hawaiian homestead families were forcibly evicted by 80 law enforcement officials -- as a matter of "principle" -- over $250,000 in overdue mortgages.

The question that demands to be asked is whether the Lingle administration is willing to hold Bank of America, which is more than five years late on $120 million, to the same standard it applied to the evicted families. The answer, to date, is no. By its actions, the Lingle Administration is demonstrating a frightful double standard and showing an acute lack of commitment to equal protection under the law. How can an administration that promises to restore trust and integrity to government behave in this way?

U.S. senators and governors have recently expressed their resolve to stand up to Bank of America's expansion plans if that is what is required to protect the interests of their constituents. Why is our governor unable or unwilling to do the same? Why does Lingle seem willing to sell us out?

Bank of America knows that its delinquency on its Hawaiian commitment is a major potential obstacle to federal approval of its acquisition of Fleet. Why is Lingle trying to help BofA off the hook? As a Republican, why is Lingle claiming to be a champion of maintaining federal Hawaiian entitlements, while simultaneously undermining a private-sector, grass-roots effort to enhance Hawaiian economic independence.

On this 10th anniversary of the U.S. government's apology to the Hawaiian people, I ask Gov. Lingle to apologize to our kupuna and to answer this question for them: Why?

Pu'uhonua "Bumpy" Kanahele lives on Hawaiian homelands in Waimanalo. He is a long-time advocate for economic sovereignty. Reach him at pu.uhonua@verizon.net.

==================

(5) January 28, 2004 article in the black activist on-line newspaper sfbayview.com discusses how activists are using mergers of large banks as opportunities to assert demands for reparations for slavery. “On Wednesday, Jan. 14 – the same day of the JPMorgan Chase/Bank One announcement – activists were giving testimony in Boston at the Federal Reserve Board’s hearing on the potential $47 billion merger of FleetBoston Financial Corp. and Bank of America. Both JPMorgan Chase and Fleet are being sued for reparations. And reparations activists are now bringing the battle for reparations to the very core of their opponents’ existence by working to prevent the possibility of their mergers with other banks – mergers that could bring the banks millions in profits.” http://www.sfbayview.com/012804/bankmergers012804.shtml

Reparations activists working to prevent major bank mergers

by Karen Juanita Carrillo

Special to the NNPA from the Amsterdam News

New York (NNPA) – The recent announcement of a potential merger between JPMorgan Chase and Bank One has reparations activists gearing up for a new battle in their campaign to win payment to today’s African-Americans, heirs to the U.S. legacy of African enslavement.

On Wednesday, Jan. 14 – the same day of the JPMorgan Chase/Bank One announcement – activists were giving testimony in Boston at the Federal Reserve Board’s hearing on the potential $47 billion merger of FleetBoston Financial Corp. and Bank of America.

Both JPMorgan Chase and Fleet are being sued for reparations. And reparations activists are now bringing the battle for reparations to the very core of their opponents’ existence by working to prevent the possibility of their mergers with other banks – mergers that could bring the banks millions in profits.

“We ask that the board consider the fact that the African-American community has not forgotten what (Fleet) did to our ancestors,” Rev. Al Sampson, pastor of Chicago’s Fernwood United Methodist Church, told the Fed.

Sampson said that FleetBoston Financial Corp. had in the past purchased the Providence Bank of Rhode Island, a bank that was the principal financier of Rhode Island’s notorious John “the Enslaver” Brown, a major slave trader who was such a staunch advocate for maintaining African slavery that he often spoke before Rhode Island lawmakers urging them to realize the trade’s economic potential.

Even though he was prosecuted in federal court for slave trading after the federal government made the practice illegal, Rhode Island’s John Brown was so rich from enslaving Black people that he helped found the Ivy League’s Brown University.

“We recognize any successor in interest to the assets of (Fleet) is the successor in liabilities of the bank,” Rev. Sampson, who also serves as the economic commissioner of N’COBRA (National Coalition of Blacks for Reparations in America), said during his testimony. “With each day that passes, another person learns of Fleet’s ties to slavery and is outraged and a new law is passed to serve as ammunition to rectify the injustice.”

Sampson was referring to the continuing passage of laws that require companies to disclose any past ties to slavery. While Chicago and California have slavery disclosure laws on their books, New York City, Detroit and Cleveland have disclosure bills that could soon be passed. Failure to reveal any past ties to slavery could lead to a company’s forfeiture of a major contract.

Already, in late November 2003, Lehman Brothers had to admit its past ties to slavery in order to keep its bid alive for a $145 million O’Hare International Airport bond issue.

On top of the disclosure laws, Sampson points out that the continued organizing of groups such as the National Black United Front, the December 12th Movement, Millions for Reparations, N’COBRA, the Reparations Coordinating Committee, the Nation of Islam and the Restitution Study Group will impact any companies who fail to recognize the importance of slavery reparations.

In testifying against the banks, activists are claiming that such mergers could hurt the U.S. as a whole, because both JPMorgan Chase and Fleet have outstanding debts that will have to be paid, and if such firms become even bigger banks, such major debts could cripple the economy.

One of the duties of the Federal Reserve is, along with both the Federal Trade Commission and the Justice Department, to regulate banks and maintain their stability. Since the 1960 passage of the Bank Merger Act, the Fed has been assigned to also make sure that any proposed bank mergers won’t distress the banking industry or concentrate too much power within too few or unstable hands.

Deadria C. Farmer-Paellmann, who serves as the executive director of the Restitution Study Group and who brought the pending lawsuit, Farmer-Paellmann v. FleetBoston, warned the Fed that there were “dangers (in) allowing the merger.”

Recalling John Brown’s interest in the Providence Bank, Farmer-Paellmann noted, “Just prior to John Brown’s death, he prepared an estate inventory that indicated that Fleet’s early bank lent him substantial sums of money at a time that he was engaged in the illegal practice of slave trading.”

She continued: “Through its earlier bank, FleetBoston also collected customs fees due from ships transporting slaves and earned profits maintaining bank accounts of people who acquired their wealth in the slave trade. Well over 41,369 Africans were enslaved during the time that FleetBoston’s early bank collected customs duties and fees on ships engaged in the illegal slave trade.”

Farmer-Paellmann said in an interview that she wanted the Fed to realize what activists were warning: that before such large banks are created, it would be best for banks like Fleet to take care of its debts.

“We’re talking about two of the largest banking institutions in this nation becoming defendants,” she said.

In recent public statements, Fleet has denied any connection to John “the Enslaver” Brown. But in a May 1992 brochure called “Fleet’s History” issued by the bank (when it was known simply as Fleet before merging on Oct. 1, 1999, with BankBoston), FleetBoston’s legacy to John Brown is lauded: “As early as 1784, John Brown, one of Rhode Island’s most respected merchants, tried convincing a group of Providence businessmen of the viability of a bank of deposit. ... Brown and a small group of investors saw endless opportunities on the new frontier. ... In 1791, the Providence Bank was chartered.

“The Providence Bank weathered panics and instability to prosper in the volatile 19th century economy, financing the growth of some of America’s leading manufacturers.” The name “Fleet,” the press release states, was a name chosen to convey “the image of ships sailing to the same destination.”

For news and views from Black journalists’ perspectives, visit the NNPA’s website, www.BlackPressUSA.com.

====================

(6) The Contra Costa Times (California) of January 30, 2004 reports in an article widely syndicated by Associated Press that the merger of FleetBoston and Bank of America is being attacked by Bumpy Kanahele’s activist group “on grounds Bank of America hasn't fulfilled lending commitments to native Hawaiians.” http://www.contracostatimes.com/mld/cctimes/7829105.htm?template=contentModules/printstory.jsp

Hawaiian group alleges conflict for regulators

Associated Press

BOSTON - A Hawaii-based community group hopes to delay or even derail the merger between FleetBoston and Bank of America on the grounds that a key regulator overseeing the deal has a Bank of America mortgage.

The Hawaii Fair Lending Coalition has made public documents showing that A. Linwood Gill, vice president of supervision and regulation for the Federal Reserve Bank of Richmond, took out a home mortgage from Bank of America in February, before the merger was announced.

The group contends the loan violates federal conflict-of-interest laws that prevent bank examiners from receiving loans from banks they regulate, though that law was loosened in December to allow regulators to acquire credit card loans or loans for a primary residence if certain requirements are met.

Susan Stawick, a spokeswoman for the Federal Reserve Board, which is overseeing the merger, said she could not comment on a pending application.

A FleetBoston spokesman referred questions to Bank of America, and a Bank of America spokeswoman referred questions to the Fed.

Linwood received a Bank of America mortgage for $106,400, due by 2018, on his Chester, Va. home, according to public records obtained by the group.

According to the Fed's Web site, the supervision and regulation division coordinates applications for activities such as mergers. Its job is then to "consider a transaction's effect" on the various companies and communities involved.

Ian Chan Hodges, a volunteer coordinator with the group who wrote to the Federal Reserve Board last week seeking a full investigation and a halt of the merger proceedings, acknowledged Linwood may not fit the technical definition of a bank examiner, which would subject him to the law. But he said he is closely enough involved to present a conflict of interest.

"Our basic position is it's a semantic thing," Hodges said in a telephone interview Thursday. "He is the person who's going to be making a recommendation to the board."

Hodges said his group opposes the merger on grounds Bank of America hasn't fulfilled lending commitments to native Hawaiians.

==============

Hawaii group files suit against FleetBoston-Bank of America merger

by Jennifer Hamilton

A federal lawsuit filed Friday on behalf of Native Hawaiians seeks to block the multibillion-dollar merger between FleetBoston Financial Corp. and Bank of America until $180 million in lending commitments are met.

The suit wants the Federal Reserve Board to compel Bank of America to come through on the loans, which were ordered in 1994 and 1998 under a federal act that aims to help Hawaiians own their homes. The Hawaii Fair Lending Coalition says the commitments have not been upheld.

"These commitments are more than five years past due," coalition spokesman Ian Chan Hodges said. "Any American who was this far behind on a mortgage owed to Bank of America would have been looking for a new place to live years ago."

Shareholders of the two banks are set to vote March 17 on the proposed deal, which is still subject to regulatory approval. The merger, in which Bank of America proposes to pay $47 billion in stock to Fleet, could be complete by summertime.

But the concerns about the Hawaiian loans threaten to delay that timeline.

The issue began in 1994 when Bank of America merged with Liberty Bank and was ordered to provide $30 million for affordable housing on Kauai. Four years later, Bank of America and NationsBank came together and a condition of the deal's approval was $130 million in loans for Hawaiian home lands. None of these commitments has been met, Hodges said.

"Bank of America's gross delinquency on this commitment has cost Hawaiian families tens of millions of dollars when the lost opportunity to accumulate home equity and the other benefits of home ownership are added up," said Puuhonua Kanahele, a Native Hawaiian leader who has been advocating for enforcement of the Federal Reserve's orders since 1998.

Hundreds of community organizations nationwide are opposing the Bank of America-FleetBoston merger.

Hawaii attorney Eric Seitz filed the lawsuit.

====================

Hawaiian group back in court over lapsed mortgage promise

By Vicki Viotti

A group of Native Hawaiians has gone to federal court in an attempt to force Bank of America to fulfill a 10-year-old pledge to provide $150 million in mortgage loans promised to Native Hawaiians after a lending dispute.

The lawsuit, filed yesterday in U.S. District Court, names Federal Reserve Board Chairman Alan Greenspan and board members. It seeks a court order that the board halt the bank's proposed merger with FleetBoston Financial Corp. until the pledge has been fulfilled.

The court complaint is the latest step in an ongoing campaign. Last fall, Hawaiian activist Pu'uhonua "Bumpy" Kanahele, a member of the Hawaii Fair Lending Coalition, asked the U.S. attorney's office to investigate the shortfall in issuing the mortgage loans.

Yesterday's action was filed by Hawaiians Momi Haili, Kahilihiwa Kipapa and Elizabeth Ann Ho'oipo Pa Martin, whom Kanahele said would have benefited from Bank of America's lending commitment.

The conflict began in 1994, when the coalition charged Bank of America with discriminatory lending practices toward customers of Hawaiian and Filipino ancestry. A federal hearing on the complaint led the bank — then negotiating its merger with Liberty Bank — to settle by making the lending commitment to Native Hawaiians.

Very few loans were made by the federally mandated 1998 deadline, Kanahele said.

The nonprofit group Hawaiian Community Assets Inc. was formed, and three years ago applied to become the first Native Hawaiian-controlled and -operated community development financial institution that could deliver the loans.

Bank of America officials could not be reached yesterday, but in past interviews, spokeswoman Mary Waller has said the bank made $100 million in "qualifying loans and investments" in partial fulfillment of the $150 million goal.

"We don't have a retail presence in Hawai'i," Waller said then. "We sold our branches in 1997, and yet we've made considerable progress toward our goal. Given that we don't have a retail presence there, I think that says a lot about our commitment to Hawai'i."

Eric Seitz, the attorney representing the Hawaiian group, said he expected his request for a preliminary injunction halting the merger to receive a hearing in a few weeks.

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http://pacific.bizjournals.com/pacific/stories/2004/02/16/story3.html

http://pacific.bizjournals.com/pacific/stories/2004/02/16/daily54.html

http://the.honoluluadvertiser.com/article/2004/Feb/19/bz/bz02a.html

http://starbulletin.com/2004/02/19/business/story5.html

Here is the article from the Star-Bulletin of February 19, 2004:
http://starbulletin.com/2004/02/19/business/story5.html

Judge indicates he will dismiss suit challenging BofA-FleetBoston merger By Ron Staton
Associated Press

A federal judge said yesterday he likely will dismiss a lawsuit brought by Native Hawaiians against the Federal Reserve Board seeking to halt Bank of America's merger with FleetBoston, but said the board should consider their concerns. U.S. District Judge David Ezra said he will issue a ruling today or Friday, but indicated he believes he lacks jurisdiction. He said if he had the authority, he would not hesitate exercising it.

Ezra agreed with the three Native Hawaiian plaintiffs that Bank of America has not met its lending commitments to them, and strongly urged the board to take their concerns into consideration in deciding whether to approve the merger. "I'm not prejudging the merger issue," he said, "but the record is clear Bank of America made commitments that have not been kept."

The lawsuit claims that Bank of America has not complied with commitments made on two occasions, including one in 1994, to provide tens of millions of dollars for loans and low income housing in Hawaii. "It appears to me that what the plaintiffs are concerned about is the abysmal record of Bank of America in fulfilling its commitment," Ezra said.

Kit Wheatley, assistant general counsel for the Federal Reserve, argued that the board lacks enforcement authority. "We can't go to Bank of America and impose penalties," she said.

But Ezra, addressing Wheatley by video conference, said, "You say the board is impotent. I say the board made itself impotent. The board should say 'If you don't honor your commitment, we won't approve your merger."' The board chose not to do more than accept bare commitments from Bank of America, Ezra said. "The board has another opportunity to enforce those commitments," he said. "I hope they will take their obligations seriously. "The situation that exists here is an embarrassment," he said. "This lawsuit is a cry for help. There is no other way they could get someone's attention. They certainly got my attention." Ezra said if he issued an order that likely would be summarily reversed, it would build up the plaintiffs hopes only to have them dashed. "I won't be a party to that," he said. "These individuals are deserving of respect and deserve to have their message heard in a meaningful way," he said. The judge said he hopes that if he dismisses the lawsuit, it will not be taken as a signal the case is without merit.

Eric Seitz, the attorney for the plaintiffs, said he believes the court does have jurisdiction and that if Ezra rules against him, he will have to talk to his clients about an appeal to the 9th U.S. Circuit Court of Appeals. But Seitz noted that by the time the appeals court would hear the case, the Federal Reserve will have already taken action. Wheatley said the board expects to make a decision in two or three weeks.

Wheatley argued that if the merger is approved, the plaintiffs could appeal. But Seitz said he doesn't believe his clients would have standing to appeal that decision in the federal appeals court in Washington, D.C., where the decision will be made.

Hooipo Pa, one of the plaintiffs and also an attorney, said she believes Ezra "went as far as he could go." She says she lost her Hawaiian homestead plot at Anahola, Kauai, because she was unable to secure a loan to build on it.

Bank of America began a lending program for Hawaiian Home Lands homesteaders in 1994 after the Hawaii Fair Lending Coalition accused it of discriminating against Hawaiians in its lending practices. In response, the bank said it would set aside $150 million for loans to homesteaders, and $30 million for low-income housing on Kauai. The commitment was also a condition of Bank of America's 1998 merger with Nations Bank, according to Ian Chan Hodges, the Fair Lending Coalition's spokesman.

===============

http://the.honoluluadvertiser.com/article/2004/Feb/25/bz/bz04a.html
The Honolulu Advertiser, Wednesday, February 25, 2004

Judge throws out bank merger suit

By Vicki Viotti

U.S. District Judge David Ezra has dismissed a lawsuit by a group of Native Hawaiians seeking to halt a merger sought by Bank of America, saying that he lacked jurisdiction to act and that the group lacked standing to bring the suit. Ezra's written decision was issued late Monday, but he hinted strongly that he would dismiss the case during a Thursday court hearing. The suit was an attempt to compel the Federal Reserve Board to block the Bank of America's merger with FleetBoston until the bank first fulfilled a 10-year-old commitment to issue $150 million in mortgage loans to Hawaiian Home Lands homesteaders. That commitment was made in 1994 after the Hawai'i Fair Lending Coalition accused the bank of discriminating against Hawaiians in its lending practices.

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http://starbulletin.com/2004/02/25/business/story3.html
The Honolulu Star-Bulletin, Wednesday, February 25, 2004

Judge rejects challenge to BofA merger

By Ron Staton

A federal judge has dismissed a lawsuit brought by Native Hawaiians against the Federal Reserve Board seeking to halt Bank of America's merger with FleetBoston, saying he lacked jurisdiction. U.S. District Judge David Alan Ezra had said during a hearing last Wednesday that he likely would dismiss the case. But he criticized Bank of America for failing to meet its commitments to Native Hawaiians, and said the Federal Reserve should consider their concerns. In his formal ruling on Monday, Ezra noted that the Federal Reserve is considering testimony for and against the proposed merger. "Any order issued by this court stopping that deliberative process would be premature because plaintiffs have no definitive basis that they will be injured by any particular action taken by the board," the judge wrote. Ezra also said the three plaintiffs lacked standing to bring the lawsuit. He said he was not convinced that their inability to obtain mortgages could be fairly traced to any obligations on behalf of Bank of America. "The board is charged with considering approval of a proposed merger," he said. "It is far too tenuous to link the alleged harm suffered by the plaintiffs to any wrongdoing by the board." Eric Seitz, attorney for the three part-Hawaiian plaintiffs, said he was disappointed but not surprised by Ezra's ruling because it conforms with the comments the judge made at the hearing. Seitz said he will meet with his clients as soon as possible to consider whether to appeal. "But I hope the Federal Reserve will take seriously the judge's comments and do something on their own to address the concerns of native Hawaiians," Seitz said. Ezra said that while Bank of America has on several occasions reaffirmed its commitment to providing the necessary financing for Native Hawaiian mortgages, it has continuously failed to fulfill that commitment. "While this court lacks jurisdiction to order the board to take action with regards to Bank of America's commitments, it can only urge that the board assess Bank of America's prior commitments in considering whether or not to approve its (merger) application," Ezra said in his ruling. The lawsuit claimed that Bank of America has not complied with commitments made on two occasions to provide tens of millions of dollars for loans and low income housing in Hawaii. Katherine H. Wheatley, assistant general counsel for the Federal Reserve, had argued during the hearing that the board lacks enforcement authority. "We can't go to Bank of America and impose penalties," she said.

=================

http://starbulletin.com/2004/03/09/business/story4.html
Honolulu Star-Bulletin, Tuesday, March 9, 2004

Fed OKs merger to create third-largest U.S. bank
A Hawaii group plans to appeal the decision and seeks to make the banks fulfill past lending obligations to Native Hawaiians

By Marcy Gordon, Associated Press

WASHINGTON -- Bank of America and FleetBoston Financial Corp. won approval from the Federal Reserve yesterday for a merger creating the third-largest U.S. bank, a behemoth holding nearly $1 trillion in assets and stretching from California through the South and up to New England. The Fed's board of governors voted 6-0 to clear the merger, determining that Bank of America's acquisition of FleetBoston would not threaten competition or unduly concentrate banking resources. The new institution, with about 5,700 branches, would have assets trailing only Citigroup and another planned bank megamerger between Chicago-based Bank One and Wall Street powerhouse J.P. Morgan Chase. The proposed purchase of FleetBoston -- a deal estimated at $47 billion when announced last October -- has been met with much anxiety in Boston, which would lose its last major hometown bank, and to a lesser extent in other communities across the country worried about diminished competition and local control. The central bank's approval removed the last major regulatory hurdle for the combination, which already had been blessed by the Justice Department and the Federal Trade Commission. The merger also must be approved by shareholders of both banks, allowing it to be completed early next month. Both banks have scheduled special shareholders meetings for March 17 for the votes. At public hearings held by the Fed in January in Boston and San Francisco, witnesses expressed concerns about predatory lending, possible closing of rural bank branches and the trend toward big banks getting bigger. Last month a federal judge in Honolulu -- saying he lacked jurisdiction -- dismissed a lawsuit against the central bank brought by Native Hawaiians seeking to halt the merger. The Fed noted that Bank of America had recently affirmed its intention to complete its goal for mortgage lending to Native Hawaiians. Ian Chan Hodges, a spokesman for the Hawaii Fair Lending Coalition, said yesterday that his group plans to appeal the Fed's decision in the 9th U.S. Circuit Court of Appeals, which has jurisdiction over Hawaii. He said the group would press to make sure the banks fulfill past obligations to Native Hawaiians. The banks maintain that the merger will benefit consumers by giving them an expanded choice of ATMs, branches and banking products. In its merger review, the Federal Reserve also determined that the new bank -- to be called Bank of America Corp. -- would fulfill obligations under the Community Reinvestment Act, which requires banks to make loans in low-income and minority areas as a condition for opening new branches. To address concerns, Charlotte, N.C.-based Bank of America has said it would commit to investing $750 billion in community lending and investment over the next 10 years, including $100 billion in the mid-Atlantic and New England markets served by FleetBoston. FleetBoston says it has made $18 billion in community investments over the past four years-- ahead of its commitments -- though some community activists have questioned that. The merged bank would have assets estimated at $966 billion. Bank of America has said some job losses may be expected because of the "elimination of redundant administrative positions" but that employees who deal directly with customers will be largely unaffected. Bank of America has 100-year-old roots in California, where it financed Hollywood movies and the Golden Gate Bridge. It was bought by NationsBank, which adopted its name and moved it to North Carolina in 1998. FleetBoston is the product of a series of mergers, having operated under names including First National Bank of Boston, Baystate Corp., Bank of Boston and, following a 1999 merger with Fleet Bank of Rhode Island, FleetBoston Financial.

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http://www.latimes.com/news/nationworld/nation/la-na-kingdom21jul21,1,4624627.story?coll=la-headlines-nation

Los Angeles Times, July 21, 2005

COLUMN ONE

Rebuilding a Hawaiian Kingdom

'Bumpy' Kanahele has carved out an Oahu village where native values reign. Many see it as a steppingstone to the goal of sovereignty. By Tomas Alex Tizon
Times Staff Writer

WAIMANALO, Hawaii — From Honolulu, it takes an hour to drive here, heading north over dagger-like mountains and then east through rolling farm country to the outermost corner of the island known by some as the Hawaiians' Hawaii.

Tour buses circling the island don't stop here except to gas up.

Those who step off the bus won't find hula dancers greeting them with leis, or five-star hotels, or even two-star ones. They'll find a sleepy, rough-edged, working-class town of 10,000 people, some of whom don't like tourists and don't mind saying so.

"Haole, go home!" and variations of whites-aren't-welcome are occasionally shouted from front porches as a reminder that this isn't Waikiki. It's a different world. Locals rule here.

Half the residents are native Hawaiians, and many more are part Hawaiian. This is a place where Hawaiian is taught as a first language in some schools and spoken among neighbors, a place where it is widely held that Hawaii was stolen by the United States and that someday these lands will return to the Kanaka Maoli, the ancient Polynesians who settled the islands.

Scattered throughout Waimanalo's neighborhoods are state flags hanging upside-down, a symbol of defiance. In this corner of Oahu, Hawaiian sovereignty — a government of Hawaiians for Hawaiians — isn't just a tropical dream. The people have seen a version of it materialize before their eyes.

In the foothills above town, there is a village unlike any other in Hawaii. It's called Pu'uhonua o Waimanalo ("Refuge of Waimanalo"), a community of 80 native Hawaiians living communally on 45 acres. If Waimanalo is a stronghold of Hawaiian sovereignty, the village is its spiritual center.

Some people refer to it as "Bumpy's town," named after the 300-pound, tattooed, activist ex-con who negotiated the village into existence — wrangling with the state's most powerful politicians — more than a decade ago.

Dennis "Bumpy" Kanahele, 51, is a descendant of King Kamehameha I and bears some of the warrior's physical presence. When asked how far removed he was from the king, Kanahele thought for a moment, then lifted a massive leg onto a nearby table. He studied a row of blue and red triangular markings tattooed on his calf.

"Eleven generations, brah," he said matter-of-factly. If Kamehameha were here today, he said, the king would be uniting his people as he did two centuries ago.

Kanahele is a folk hero in these parts. He did what no other Hawaii activist had done: carved out a little kingdom within a kingdom, allowing natives to live by their own rules and revive the ways of the Kanaka Maoli. For many locals, the village represents the most tangible gain in more than 30 years of agitating for Hawaiian sovereignty.

When the movement first emerged in the 1970s, even native Hawaiians were skeptical.

"I didn't think it could happen myself, but people like Bumpy made us see it could," said Sandra Barney, 59, a native Hawaiian from Kaneohe Bay who has known Kanahele since he was a young man. "The proof is here. Bumpy stuck his neck out. I thought they were going to chop it. Now there's a village in the mountains."

The idea of sovereignty has become part of Hawaii's mainstream consciousness, with the state's most powerful political leaders — Republican Gov. Linda Lingle and Democratic Sens. Daniel K. Inouye and Daniel K. Akaka — supporting some version of it.

The U.S. Senate is considering a Hawaiian sovereignty law known as the Akaka bill, named after its chief sponsor and the first native Hawaiian in Congress. The bill, which has stalled in the Senate the past five years, was blocked again Wednesday by a Nevada senator concerned that it might encourage Hawaiians to build casinos. Both Hawaii senators said they had secured enough support to pass the bill if it ever made it to a vote. The House passed an earlier version.

The legislation would lead to federal recognition of native Hawaiians in the same way that the government recognizes American Indians and Native Alaskans. It would also initiate a process under which native Hawaiians could set up their own government, giving them the same nation-within-a-nation status as Indian tribes.

A native government would represent Hawaiians in negotiations with the federal government over contested land and resources, including nearly 2 million acres once owned by the Hawaiian monarchy — nearly half the state.

Forming the new government would take years, not counting legal challenges.

A 2003 survey by the state Office of Hawaiian Affairs, like most in recent years, found that the majority of Hawaii residents supported sovereignty. But the Akaka bill has inspired an odd spectrum of opponents.

On one hand are political conservatives, mostly Caucasian, who call the idea divisive and immoral.

"Every country that has used racial ancestry as the basis for who deserves recognition, who is entitled to privileges, has ended up disastrously," said H. William Burgess, an attorney who has challenged the legality of state-sponsored entitlement programs for native people. Burgess said the Akaka bill would create "a race-based government."

On the other hand are native Hawaiian activists like Kanahele who want nothing less than total independence from the United States.

They see it as the only way to right the wrong of 1893 when U.S. troops helped overthrow the Hawaiian monarchy, leading to annexation and statehood, and, for the Kanaka Maoli, loss of a kingdom and an ancient way of life.

Today, the state's estimated 240,000 native Hawaiians — those with 50% or more Hawaiian blood — make up about 20% of the population and fare poorest in almost all socioeconomic indicators. They have the state's worst health statistics, highest number of school dropouts, highest unemployment rate and highest levels of incarceration.

Kanahele grew up in Waimanalo as one of the statistics, dropping out of high school and serving time for theft and assault. In his 20s, the angry young man transformed into a ferocious advocate for his people, leading protests against the "illegal occupation" of Hawaii.

One day in 1987, Kanahele recalled, he went to a nearby beach and saw homeless people camped under the palm trees. Nearly all of them were Kanaka Maoli. How could this happen in their own homeland? he recalled thinking.

The next thought changed his life:

"The government will never give back our land. How about if we just take it back?"

By that time, Kanahele had a following, many of them friends from Waimanalo. In the spring of that year, he and about 50 protesters took over a former Coast Guard station and the surrounding 300 acres at Makapuu Lighthouse, the easternmost tip of Oahu. The acreage, owned by the state, was part of what Kanahele called "the stolen lands."

Kanahele's group occupied the site for two months. During one confrontation with police, Kanahele pulled out a shotgun. He was arrested and served 14 months in state prison. It turned out to be a fruitful time.

"Most of the people in there were brothers," Kanahele said, fellow native Hawaiians "who were caught up." He proselytized and recruited and, upon his release, had a new army of followers who eventually joined him.

In 1993, the 100-year anniversary of the U.S. takeover of the islands, Kanahele led 300 people in an occupation of Makapuu Beach, a short drive from Waimanalo.

News cameras captured images of Kanahele armed not with guns but copies of President Clinton's newly signed "Apology Resolution," which acknowledged the U.S. role in overthrowing the monarchy.

The political climate had shifted. John Waihee, then the state's governor and the first of Hawaiian ancestry, had recently told constituents that sovereignty was only "a matter of how, when and in what form."

Polls showed that three out of four Hawaiian residents supported sovereignty, and Kanahele — the most militant of the activists — gained a reputation as a thug-hero. Arresting him could have stirred the 40 other Hawaiian sovereignty groups to join the occupation.

Kanahele began building houses on the beach. After 15 months, Waihee finally intervened. The governor's office proposed a deal: If Kanahele and his group vacated the beach peacefully, the state would give them a 45-acre parcel above Waimanalo in the foothills of the Koolau Mountains.

Kanahele accepted.

In June 1994, the protesters disbanded and the core group made its way to the future site of Pu'uhonua o Waimanalo.

Gina Maikai, 44, recalled those first days in the hills:

"It was a forest. There was nothing but trees. At first, we lived in tents while the men made a road. Then we moved onto platforms while the men built houses. We had to find our own lumber. We did all the work. Mosquitoes were a problem."

The entrance to the village lies at the end of a long country road. A swinging metal gate opens up to another road that winds uphill into a clearing, where a string of 22 cottages rests along the sway of the land. It isn't a place of straight lines.

The feel is lush and slightly messy, like a rumpled blanket.

There are no fences. The home sites blend into each other. Wild chickens scamper between cottages, children chasing them. Rising above the clearing are green mountains whose steep curving sides create a hollow that amplifies the sounds of tropical birds, a constant chorus.

A lot has happened in 11 years. Kanahele's group eventually agreed to sign a renewable 55-year lease at a cost of $3,000 a year, which worked out to about $60 annually per adult, a token payment.

No government official will publicly admit it, but the state has adopted a hands-off approach to the village, waiving many regulations — such as building permits and fishing and hunting licenses — and allowing the villagers to govern themselves.

Village affairs are managed by four women — a "council of aunties" — who appoint responsibilities, hear grievances and settle disputes. Recently, a village mother was found to be using cocaine, and the council ordered her to enter drug rehab or face eviction.

"Once I had to evict my own mother-in-law," said Maikai, who heads the council. "You have to be part of the big family, and she couldn't handle it."

When space opens up in the village, the council decides who can move in. Most residents have known each other for years and, in many cases, their families have been acquainted for generations.

One villager is in charge of collecting garbage, one tends the taro patch, one cultivates ti leaf and another provides security by patrolling the village perimeter. Everyone has a job, and every adult contributes to paying the lease and whatever other expenses come up.

Of the 80 residents, half were among the occupying group at Makapuu, and about 30 are children. Most adults work piecemeal jobs on the outside, mainly in the building trades.

Every adult is in charge of instructing the children in at least one traditional skill, such as killing a wild animal or catching reef fish with throw nets. The children learn the Hawaiian language, memorizing names for plants and creatures, such as the reef triggerfish — the state fish — that Hawaiians call humuhumunukunuku apua'a.

As for Kanahele, his life changed along with the village. Not long after his group moved into the hills, he was convicted of harboring an activist who had refused to pay federal taxes. Kanahele spent four months in federal prison and emerged with an even greater reputation among hard-core activists.

The political establishment continued to warm up to him.

In 2002, then-Gov. Ben Cayetano granted Kanahele a full pardon for his prior convictions and hailed him as "a leader in the Hawaiian community." Kanahele thereafter vowed to avoid all violence, choosing instead a Gandhian path of "passive civil resistance" and "throwing spears of aloha" at his opponents.

With his three children grown and his wife of 28 years busy with her own projects, Kanahele spends his days cooped up in his office in the village. He cobbles together a living as a speaker and consultant on native issues, but his main work is here, on the phone, trying to figure out a way to spread the seeds of Pu'uhonua village.

His vision is to form similar villages throughout the islands.

Recently, the president of French Polynesia, Oscar Temaru, visited Kanahele. Temaru has long advocated independence from France. The two longtime friends compared notes. Kanahele showed Temaru the view from the highest point in the village.

"Let me show you what I showed him, brah," Kanahele said to a visitor.

Walking through several doorways, his hulking shoulders filling them as he passed, Kanahele stepped onto the village road and hiked a short distance to the top of a hill. From there, he gestured north toward Waimanalo and beyond, to a white-sand coastline and a slice of crystal blue ocean.

"This is what sovereignty is to me," he said. "Standing here on your land, not owing anything to anybody, not being afraid of anyone, knowing you fought the right fight with attitude — and looking out at that. This is the beginning, brah, just the beginning."

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http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/20050927/BUSINESS/509270313/1071
Honolulu Advertiser, September 27, 2005

Second new bank planned

By Rick Daysog

A group of investors plans to start a new Hawai'i bank that will cater to the growing Korean-American community.

Ohana Pacific Bank said it plans to open a single branch at the former American Savings Bank office on Kapi'olani Boulevard near Ala Moana Center as early as next year, according to a filing with the state Division of Financial Institutions.

The application comes less than two months after regulators approved the startup of Pacific Rim Bank, which is the state's first new bank in 16 years.

"With the improving economy of Hawai'i and the recent consolidation in the state's banking industry, there's a large demand for a small community service bank," said Woon Hyun, Ohana Pacific's president and chief executive.

Ohana Pacific, which also filed an application with the Federal Deposit Insurance Corp., plans to raise as much as $12 million in capital and will employ about 15 people, said Hyun, who previously served as president and chief executive of Pacific Union Bank in Los Angeles.

In addition to Hyun, the new bank's 11-member board of directors will include former Pacific Union Bank chairman Allan Dalshaug, longtime City Bank executive Wayne Miyao, local accountant Michael Tanaka, attorney Rex Kim and veteran Hawai'i insurance executive Hyung Kwon Cha.

Other board members include local real-estate agent Nicole Choi, real-estate executive David Jung, local entrepreneur Donald Kang, University of Hawai'i finance professor Sangghon Rhee and Woon Ik Chung, former coach of the South Korean women's ice hockey team.

The new company will provide traditional retail banking services such as checking accounts, savings accounts, money-market accounts, certificates of deposit and individual retirement accounts.

While the bank will be open to all customers, Hyun said, it will target the Korean community, which it believes has been underserved by Hawai'i's banking industry.

In its filings, Ohana Pacific said that there are about 36,000 people of Korean ancestry in Hawai'i with a potential deposit base of about $659 million. The company projected that it could attract about 14 percent of that market, or about $91 million, by its third year of operation.

Ohana Pacific's application comes less than two months after state regulators granted Pacific Rim Bank preliminary approval to operate in Hawai'i. Pacific Rim, headed by former City Bank executive Austin Imamura, is in the process of building its Waterfront Plaza office, said Nick Griffin, commissioner of the state Division of Financial Institutions.

OHANA PACIFIC BANK
President and CEO: Woon Hyun
Branches: 1
Location: 1357 Kapi'olani Blvd.
Projected startup: Early next year
Projected employees: 15

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