Groups Oppose NationsBank Acquisition

Two consumer groups filed a joint protest with the Federal Reserve Board over NationsBank Corp.’s proposed acquisition of San Francisco-based Montgomery Securities. Inner City Press/Community on the Move of Bronx, N.Y., and the New Mexico Alliance say they don’t trust NationsBank to provide good customer service once the deal is completed. “It’s in such a rush to go coast-to-coast and to expand into new businesses that it buys up the biggest bank in a state . . . then rushes on to do another acquisition while many technical complaints and all kinds of other snafus go on,” said Matthew Lee, executive director of Inner City Press. Charlotte, N.C.-based NationsBank executives did not return messages seeking comment. NationsBank announced the $1.2-billion acquisition of the investment firm on June 30. The complaint alleged “troubling recent legal actions against NationsBank,” citing a recent $29-million settlement this month over allegations of improper investment sales practices.