The proposed merger will make the planned Fleet Boston Corp. the eighth largest bank in the country and one of the most significant financial presences in New England. Boston will remain a hub of financial services, and Boston-based banks will be available to depositors in New England. In an economy where the rules of engagement have changed affecting financial institutions competing for market share in New England, the Fleet-BankBoston marriage is an important step toward fending off the challenges of outsiders and keeping our home-grown industry strong.

The successful navigation of this new financial terrain, though, will require significant public policy issues to be addressed. Government, business, and community leaders ought to work together to maintain high standards of customer service and corporate community engagement. Corporate citizenship should be a part of a redefined "bottom line."

Our first responsibility lies in meeting the immediate challenges of the work-force dislocations caused by this merger. Any time two large firms are combined, restructuring can be expected and layoffs are an inevitability. The Boston Globe reported that we can expect to see the loss of 4,000 to 5,000 jobs. Every effort should be taken to minimize job loss and provide sufficient retraining and job-placement assistance to displaced workers.

Consolidation of banking power is not a blank check to raise fees and lower the quality of service. Fleet Bank and BankBoston together own almost two-thirds of the ATMs in New England. Concentrating so many ATMs in so few hands risks limiting consumer choice - and vigilance is required to prevent his concentration of power from being employed as a means of driving smaller, independent, and community banks out of the marketplace. While free ATM use for Fleet-BankBoston customers may expand because the number of ATMs available to them will increase overall, policy makers should be watchful of the capacity to which ATM surcharges become more prevalent and may ultimately raise serious antitrust questions.

Policy-makers also need to consider their approach to the upcoming divestiture mandated by federal law. Banks of all sizes should be afforded the opportunity to purchase some of the local branches to be jettisoned as a result of the Fleet-BankBoston merger. The Justice Department should move forward with a fair and competitive divestiture process that allows all banks to compete on the same playing field. Divestiture must be completed in a way that encourages local competition and expands consumer choice.

Banks also maintain serious responsibilities to provide assistance to underserved communities. Corporate America is an integral partner in our efforts to lead a transition to a new economy where no one is left behind. Through the Community Reinvestment Act, Congress set standards for the private sector in building an economy in which we can all participate, recognizing that credit is the economic lifeblood of every American community. Access to credit must be expanded to develop housing, reclaim abandoned properties, and expand small businesses. Combining entrepreneurial zeal with access to credit enables communities to create jobs and revitalize neighborhoods. We expect our banking leaders to remain fully engaged and embrace this responsibility in the years ahead.

Economic change, particularly in banking, is an inevitability to be embraced and wisely managed. We are not powerless to shape the contours of this new economy. We know New England's banking industry can provide economic leadership. We also expect our banks to demonstrate leadership in customer service and corporate citizenship as well. And we will be watching to insure that those goals are merged into one unifying vision.