FEW BANK ON L.A.; GLENFED WOULD JOIN EXODUS.Byline: Deborah Adamson Daily News Staff Writer If the merger with California Federal Bank California Federal Bank, often abbreviated to "Cal Fed", was a savings and loan bank in California. It existed from 1926 until 2002, when its parent company Golden State Bancorp was acquired by Citigroup, resulting in the bank being merged into Citibank. is approved by shareholders, Glendale Federal Bank will be the fifth major bank or thrift to relocate its headquarters out of the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. area since 1990. So what's wrong with L.A.? ``There's nothing wrong with Los Angeles,'' insisted Noelia Rodriguez, Mayor Richard Riordan's press secretary. ``This was a business decision.'' A very popular decision among business leaders, apparently. In 1991, Security Pacific Corp. left for San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden after Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. acquired it. Five years later, First Interstate was gobbled up by San Francisco-based Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. & Co. California Federal Bank also headed for San Francisco in 1996 after being acquired by First Nationwide. Last year, Seattle-based Washington Mutual “WaMu” redirects here. For the Washington, DC radio station, see WAMU. Washington Mutual (or WaMu; NYSE: WM) is the United States' largest savings and loan association. rode off with Great Western Financial Corp., the Chatsworth-based thrift. ``Anytime you lose any type of headquarters, it hurts you,'' said Jack Kyser, chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the at the Economic Development Corp. of Los Angeles County. ``This is a blow to our pride and prestige.'' This one could also be a blow to Glendale, said John Rooney
``We're going to lose their headquarters, administrative offices and jobs in Glendale,'' he said. Also, ``they have been active in the local community.'' As for merger and acquisition activity among banks and thrifts, it's not over yet. Donald Destino, a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. analyst at Jefferies & Co. in Los Angeles, believes the pace will even pick up. After all, he pointed out, Glendale Federal was in the process of absorbing two other thrifts when it was bought itself. ``The next watershed event is the entrance of out-of-state players,'' he said. So far, Washington Mutual is the only major non-California player. But Destino says New York-based CitiCorp and Ohio-based Banc One are among those eyeing the Golden State. ``They have virtually no presence in California,'' he said. ``They will buy themselves in.'' Among the possible targets? Analysts have said H.F. Ahmanson & Co. is a likely target, especially once Great Western rebuffed the Irwindale-based company's merger talks. Ahmanson is the largest financial institution headquartered in Los Angeles County. Ironically, it's in the process of buying Coast Savings Financial, one of the few L.A.-based institutions remaining. THE BUYER NAME: Ron Perelman AGE: 54 NET WORTH: $6.5 billion, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the October edition of Forbes Magazine. That makes him the eighth-richest American. HOLDINGS: - Perelman has bought and sold approximately scores of companies in the past 20 years. - 80 percent owner of First Nationwide, the holding company of California Federal Bank - He is currently chairman of: - Revlon Worldwide Corp., the cosmetics company - Consolidated Cigar Corp., the largest manufacturer of cigars in the U.S. - MacAndrews & Forbes Holdings Inc., holding company of Mafco, among others - Mafco Consolidated Group Inc., which has a 72 percent stake in Woodland Hills-based Panavision Inc., among other holdings. - Meridian Sports Inc., manufacturer of MasterCraft water ski boats In boating, a ski boat is a boat specifically designed to safely tow one or more water skiers. This is achieved by using a high-horsepower automobile engine usually positioned in the midsection and driven through a direct drive to the propeller. - Former chairman of Marvel Entertainment Marvel Entertainment, Inc. (NYSE: MVL) is an American entertainment company. The company traces its origins to the May 1933 publication of Western Supernovel Magazine. , the comic book comic book Bound collection of comic strips, usually in chronological sequence, typically telling a single story or a series of different stories. The first true comic books were marketed in 1933 as giveaway advertising premiums. and trading cards publisher SOURCE: SNL SNL Saturday Night Live SNL Sandia National Laboratories SNL School for New Learning (Depaul University) SNL Springfield News-Leader (Missouri newspaper) SnL Sweet N Low SNL Standard Nomenclature List Securities LC, Bloomberg News, Golden State Bancorp, Daily News research Top 10 in state The combined companies of Golden State Bancorp and First Nationwide Holding would have a 6.43 percent market share, making it the fifth largest financial institution in the state. Rank Institution H.Q. Market share % 1. BankAmerica Corp. S corp. abbr. corporation .F. 20.65 2. Wells Fargo & Co. S Wells Fargo & Co. Leading U.S. banking and financial services company formerly involved in express transport. Founded in 1852, Wells, Fargo transported gold between the west and east coasts in the wake of the California gold rush. .F. 13.75 3. HF Ahmanson & Co. Irwindale 8.58 4. Washington Mutual Inc. Seattle 8.46 5. Union BanCal Corp. S.F. 5.15 6. First Nationwide Holding S.F. 3.48 7. Golden West Bancorp Oakland 3.47 8.Golden State Bancorp Glendale 2.95 9. Sanwa Bank Japan 1.46 10. CitiCorp N.Y. 1.23 SOURCE: SNL Securities LC The Local thrift: Some milestones in the Glendale Federal's history: 1934: Founded by Joseph Hoeft as First Federal Savings and Loan savings and loan n. a banking and lending institution, chartered either by a state or the Federal government. Savings and loans only make loans secured by real property from deposits, upon which they pay interest slightly higher than that paid by most banks. of Glendale. 1937: Changes name to Glendale Federal Savings and Loan Association Federal Savings and Loan Association An institution chartered by the federal government whose primary function is to collect savings deposits and to provide mortgage loans. . 1959: Embarks on series of mergers; acquires 14 thrifts by 1989. 1983: Becomes publicly held and starts GlenFed Brokerage Services. 1989: Changes name to Glendale Federal Bank. 1990: Files lawsuit against federal government, which GlenFed claimed broke some promises as part of the bank's government-requested merger with a failed Florida-based thrift. The breach, according to the bank, results in serious financial difficulties. 1995: Returns to profitablity, acquires Independence One and Union Federal banks. 1996: Acquires OneCentral Bank; Supreme Court sides with GlenFed in its lawsuit against the federal government. 1997: Acquires TransWorld Bank; gets shareholder approval to form holding company Golden State Bancorp Inc.; announces acquisition of CenFed and Redlands Federal banks and opening of mini-branches and automated teller machines automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. in various locations. Damages phase in GlenFed's suit against the government begins. THE DEAL Billionaire investor Ronald Perelman For the actor, see . Ronald Owen Perelman (born January 1, 1943) is an American billionaire investor who made his fortune buying beleaguered corporations and re-selling them later for enormous profits. didn't make his money by being timid. He is at the heart of the reverse merger announced Thursday to merge Golden State Bancorp with Perelman's First Nationwide Holdings, the San Francisco-based parent of California Federal Bank. In a typical merger, only the controlling company's shares survive to be publicly-traded. First Nationwide - which is 80 percent owned by Perelman - would have had to raise an enormous amount of cash to buy the publicly traded shares of Golden State. But in a reverse merger, the controlling company's shares are exchanged for the other firm's shares, said Steve Cesinger, a managing partner at the investment banking firm of Greif & Co. in Los Angeles. Therefore, First Nationwide owners will get shares of Golden State Bancorp. After the merger, Perelman and Jerry Ford - the two co-owners of First Nationwide - will own 42 to 45 percent of Golden State Bancorp. Jerry Ford will be the CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of merged company. The remaining 55 to 58 percent of Golden State Bancorp will be divided among all other shareholders. Golden State Bancorp, which currently has 70 million shares outstanding, will issue new shares to cover the merger. Total outstanding shares once the merger closes in six months is expected to range between 135 million to 145 million. Current shareholders of Golden State Bancorp will get to keep their existing stock. Once the merger is finalized, shareholders will get additional shares equivalent to 55 to 58 percent of the newly-merged company. THE PLAYERS Glendale Federal Bank HOLDING COMPANY: Golden State Bancorp Inc. HEADQUARTERS: Glendale TOTAL ASSETS: $19.2 billion TOTAL DEPOSITS: $11.9 billion BRANCHES: 205 ATMs: 291 HOUSEHOLDS SERVED: 696,000 STATE MARKET SHARE: 2.95 percent EMPLOYEES: 2,822 California Federal Bank HOLDING COMPANY: First Nationwide Holdings Inc. HEADQUARTERS: San Francisco TOTAL ASSETS: $31.4 billion TOTAL DEPOSITS: $16.2 billion BRANCHES: 225 ATMs: 278 HOUSEHOLDS SERVED: 1,022,000 STATE MARKET SHARE: 3.48 percent EMPLOYEES: 5,300 SOURCE: SNL Securities LC, Bloomberg News, Golden State Bancorp, Daily News research CAPTION(S): 4 boxes, photo, 2 charts Photo: (color) no caption (Ron Perelman) Box: (1) The Players (see text) (2) The local thrift (see text) (3) The buyer (see text) (4) The deal (see text) Chart: (1) On the go Shares of Golden State Bancorp have quadrupled in three years (2) Top 10 in state (see text) |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion