Judge throws out bank merger suit

By Vicki Viotti
Advertiser Staff Writer

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.

Reach Vicki Viotti at vviotti@honoluluadvertiser.com or 525-8053.