GLENFED MERGER WRAPPED UP; ABOUT 700 JOBS SLATED FOR CUTTING.Byline: Enrique Rivero Daily News Staff Writer About 200 people lost their jobs Friday when Glendale Federal Bank completed its merger with San Francisco-based 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. . About 500 more employees of GlenFed - whose parent company had been Golden State Bancorp - will be cut by year's end, said Ken Preston, vice president and manager of corporate communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. for GlenFed. Preston is one of those slated to lose his job. ``Today's (Friday) the final day for the bank as a legal company, so understandably morale is down a little bit,'' Preston said. ``Of those that are leaving the company, quite a few have found new jobs.'' Of the 3,400 GlenFed employees, 2,700 will remain under the new entity. Of the 700 to be let go, all but about 30 are in GlenFed's Glendale headquarters, a San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. loan center and a Burbank data center, Preston said. The merger, one of dozens this year in the banking industry, creates a thrift thrift: see leadwort. with $52 billion in assets, $28 billion in deposits and 370 branches. The new company will retain the Golden State Bancorp name but operate California Federal branches. Meanwhile, oral arguments began Friday in Washington, D.C., in the damages phase of GlenFed's breach of contract lawsuit lawsuit: see procedure; tort. against the federal government over the government's 1989 ban on ``supervisory goodwill.'' Prior to the ban, the government had given GlenFed and other thrifts leeway lee·way n. 1. The drift of a ship or an aircraft to leeward of the course being steered. 2. A margin of freedom or variation, as of activity, time, or expenditure; latitude. See Synonyms at room. in accounting regulations in exchange for taking over failed thrifts. The U.S. Supreme Court ruled in GlenFed's favor in July 1996 and the bank's attorney expects the bank to be awarded between $863 million to $2 billion. |
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