
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, June 16, 1993                   TAG: 9306160050
SECTION: BUSINESS                    PAGE: B8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

FIRST UNION BUYOUT TRY HITS D.C. BARRIER

The District of Columbia Council on Tuesday put a potential roadblock in the way of First Union Corp.'s proposed purchase of First American Bank. Emergency legislation, sponsored by council member Charlene Drew Jarvis, would prohibit the deal unless it has council approval.

Charlotte, N.C.-based First Union, parent of Roanoke's First Union National Bank of Virginia, has said the takeover is between two federally chartered banks and does not need city approval.

Jarvis, chairwoman of council's economic development committee, said city approval is necessary because the applications include a general business plan, proposed capital investment in the district and a community development plan.

First Union acquired Dominion Bank earlier this year without controversy.

"Representatives of the First Union Corporation now contend that the current transaction is a national bank merger of Dominion of Washington, D.C., and First American of Washington, D.C., although the ultimate owner of stock in First American of Washington, D.C., will be First Union Corp., a bank holding company," Jarvis said.

First Union officials say district officials' fears that they will circumvent federal Community Reinvestment Act requirements are unfounded.

"This is not in any way an attempt to circumvent CRA requirements," said David Scanzoni, a First Union spokesman. "The city does not have jurisdiction over this because it is an in-market transaction" - one bank merging with another in the same city.

Scanzoni said the bank would institute a $100 million community development program, including establishing two branches in neighborhoods not served by any banks.

Jarvis said that both she and Fe Morales Marks, the district's banking superintendent, agree that the district can require approval, because the deal involves the indirect acquisition of a Washington-based bank by a regional bank.

The bill also blocks any deal to allow a Washington-based bank to be acquired without following the formal application process.

by CNB