Editorials
Wednesday, May 28, 1997MAYBE 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. Bank sale could mean
stronger competitionFor 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.
WITH the next presidential campaign less than three years away, House Minority Leader Dick Gephardt has begun staking out positions aimed at separating himself from President Clinton. His latest move is to strongly oppose Clinton's decision to continue China's most-favored-nation (MFN) trade status on human rights grounds. Gephardt is regarded as the strongest challenger to Vice President Al Gore for the Democratic presidential nomination in 2000 and realizes that Gore's ties to Clinton may turn out to be his most vulnerable qualities. Gephardt's politics
TO dispense or not to dispense, that is the question facing some American pharmacists about the morning-after pill. As pointed out in an Associated Press story in the Star-Bulletin, a growing number of corner druggists are finding themselves in the middle of conflicts that "pit personal beliefs against patient rights" ever since the FDA proclaimed the morning-after pill to be safe and effective. Prescription puzzle
At its next national convention, and before the RU-486 abortion pill is approved in this country, the American Pharmaceutical Association should come up with a policy requiring referral to other pharmacists so that prescriptions can be filled.
Rupert E. Phillips, CEO
John M. Flanagan, Editor & Publisher
David Shapiro, Managing Editor
Diane Yukihiro Chang, Senior Editor & Editorial Page Editor
Frank Bridgewater & Michael Rovner, Assistant Managing Editors
A.A. Smyser, Contributing Editor
