Job Losses but No Crisis With Flight of L.A. Banks.L.A. lost many of its premiere banks and savings and loans 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. in the last decade -- Security Pacific, Great Western, First Interstate, Home Savings, to name a few. Each time an out-of-town bank snapped up a homegrown institution, activists decried the loss of local control and predicted poorer banking services, higher fees, stricter lending policies and diminished philanthropy. But even local activists concede that their predictions of a wholesale deterioration of banking services were a little overblown o·ver·blown v. Past participle of overblow. adj. 1. a. Done to excess; overdone: overblown decorations. b. . If anything, industry deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. has everyone from banks to credit unions to mortgage companies clamoring for the same customers. "Now you've got the big banks arguing over whose checking account is freer," said Gilda Bass, executive director of Strategic Actions for a Just Economy, a South Central advocacy group for poor and minority banking customers. The commitments of the merged banks to community lending and philanthropic activities are more difficult to gauge. Members of banking watchdog groups say there is no way an out-of-town bank can be as responsive or as involved as a local institution when it comes to community lending and charitable giving. "Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, was better off in terms of philanthropic activities and 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. involvement when you had institutions like American Savings, Great Western and Home Savings," said Robert Gnaizda Robert Gnaizda (gə•nāz•duh) is General Counsel and Policy Director for the Greenlining Institute based in Berkeley, California. A graduate of Columbia College and Yale Law School, he has been known as an advocate of social justice for over 40 years. , director of the Greenlining Institute The Greenlining Institute is a public policy, research, and advocacy non-profit organization based in Berkeley, California. According to its mission statement, it "works to improve the quality of life for low-income and minority communities. , a public policy center in 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 that monitors the banking industry. But the banks insist that L.A. is better served today than it was before the mergers, and they are just as giving and just as involved in the community as the institutions they acquired. "We've not only been able to maintain our relationships (with the community) but also increase them in both lending and charitable contributions," said Peter Villegas, who oversees L.A.-area community development operations for Seattle, Wash.-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. Inc. Influence at groups Players like Washington Mutual, 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. and 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. Corp. (which was acquired by NationsBank in 1998) had no choice. In order to appease watchdog groups and win regulatory approval for their mergers, all three committed to providing billions of dollars for community lending, low-income housing and charitable causes. Specifically, Washington Mutual committed to providing $120 billion for community lending over 10 years as part of its mergers. Bank of America, headquartered in Charlotte, N.C., committed to $350 billion in community development loans over 10 years, and Wells Fargo committed $45 billion to community lending and $300 million to philanthropic causes as part of its acquisition of First Interstate Bank in 1996. Jorge Corralejo, a board member with the Latin Business Association, said the concessions have raised the bar for other financial institutions. "California, unlike some other states, is well organized. We were able to tackle these issues and these giants," he said. "We wouldn't have seen those concessions if the banks hadn't merged." That's not to say the mergers have not come without hardship. 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. County had 61,000 banking employees as of May 2001, down from 97,300 in 1990, 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 California Employment Development Department. Alan Fisher Alan Fisher is a journalist, currently working as the London correspondent for Al Jazeera International. He was born and raised in Motherwell and studied at journalism at at Napier College in Edinburgh. He joined Moray Firth Radio in Inverness and then NorthSound Radio in Aberdeen. , executive director of the California Reinvestment Committee, a San Francisco advocacy group for the poor and minorities, said recently merged companies tend to have a lot of debt, and they're often under pressure from Wall Street to perform. As a result, they often ignore poor and minority customers because the return on investment isn't as great. "What it means is that loans that are riskier or just profitable and not highly profitable are unlikely to be approved," he said. Fewer loans When Bank of America was headquartered in California, it was the leader in Small Business Administration lending. Since its merger and the subsequent move to Charlotte, the bank dropped to number five on the list. The SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government confirms that in fiscal 1997-98, BofA made 665 SBA loans worth $34.8 million. By the 1999-2000 fiscal year, the bank made just 99 loans worth $12.3 million. "It does concern us," said Alberto Alvarado, director of the SBA's L.A. district office. "We held them up on a pedestal On a Pedestal is an EP by the Swedish band Adhesive, released in 1998. Track listing
Alvarado said he met with the bank's local executives and they vowed to increase SBA lending. As of March 31, the bank had made 104 SBA loans, placing it on track to double last year's output. But overall, BofA and the other banks say they're more than living up to their commitments. Bank of America says it has honored $693 billion of its $350 billion commitment to community development in the past two years. About $24.1 billion of that went to California and $9.4 billion of that went to Southern California in the form of small-business lending and loans for affordable housing and economic development, said Juliet Don, a company spokeswoman. The Bank of America Foundation donated $20 million in Southern California from 1998 through 2000. "I think the numbers speak volumes about how we honor our commitments," she said. Washington Mutual has increased its cash and in-kind charitable contributions in Los Angeles County from $971,220 in 1998 to $5.8 million in 2000, according to company records. Companywide, it donated $41.8 million to charities in 2000. Wells Fargo, meanwhile, has exceeded its commitment of $45 billion in community lending in the 10-state territory once served by First Interstate, said Mary Trigg, a company spokeswoman. About $6 billion of that went to Los Angeles. Villegas bristled bris·tle n. 1. A stiff hair. 2. A stiff hairlike structure: the bristles of a wire brush. v. bris·tled, bris·tling, bris·tles v.intr. at the suggestion that his company would be more involved if it were headquartered here. He noted that the company's president and chief executive, Kerry Killenger, has been to L.A. three times in the past year or so to serve as dinner chair at events that raised $1 million, $600,000 and $300,000. Washington Mutual worked with Haas' organization, meanwhile, to create a pilot program to save welfare recipients from the high fees associated with check-cashing outfits. "We thought it was the right thing to do," said Villegas. Wells, with $9 million in donations last year, is one of the largest corporate donors left in Los Angeles, and one of the largest property holders downtown, with 3.5 million square feet of office space either owned or leased. L.A.'s Top Banks -- 1991 Security Pacific Bank Assets: $94.5 billion Net Income: $195.2 million In April 1991, reported yearly earnings drop of 49 percent ... Aborted proposed merger with Wells Fargo... During shareholder meeting Chief Executive Robert Smith Robert Smith, Bob Smith or Bobby Smith may refer to: Business
First Interstate Bancorp First Interstate Bancorp was a bank based in the United States that was taken over in 1996 by Wells Fargo. It was headquartered in Los Angeles. The name has continued to be used in the banking world by used after the merger by First Interstate Bank who had been using the Assets: $55.1 billion Net Income: $95.1 million Following BankAmerica and Security Pacific deal, all eyes were on First Interstate to be acquired... Chief Executive Edward M. Carson wouldn't budge... Said shareholders had more to gain without the help of a large parent... Streamlining was largely successful... Costs were slashed, non-performing loans reduced, earnings increased... Buyout rumors floated for years... Wells Fargo named as suitor SUITOR. One who is a party to a suit or action in court. One who is a party to an action. In its ancient sense, suitor meant one Who was bound to attend the county court, also, one who formed part of the secta. (q.v.) on several occasions... In April 1996, Wells acquired First Interstate... $13.3 billion acquisition was largest in U.S. history at the time. City National Corp. Assets: $4.9 billion Net Income: $13.8 million Reported large loss in third quarter 1991... Stock reduced by more than 50 percent from year earlier... Battered by rumors that regulators were on the verge On the Verge (or The Geography of Yearning) is a play written by Eric Overmyer. It makes extensive use of esoteric language and pop culture references from the late nineteenth century to 1955. of closing institution -- denied by chief executive... Disclosed that bank was forced to raise $65 million to build a larger cushion against potential losses... Bank directors pledged $10 million as a show of confidence... Bank hired New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of investment bank, First Boston First Boston Corporation was a New York-based investment bank, founded in 1932 and acquired by Credit Suisse in 1988, when it became 'CS First Boston'. Globally referred to as Credit Suisse First Boston after 1996, the First Boston part of the name was phased out in 2006. , to come up with the other $55 million... Sold off data processing division and reported 1993 second-quarter gain. Imperial Bancorp Assets: $3 billion Net Income: $6.3 million Founded in 1963 on the corner of Western Avenue and Imperial Highway, hence the name... In December 1991 bank combined mortgage banking division and thrift subsidiary into Imperial Credit Industries... Investment banking firms engaged to pursue potential IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ... Bank tried to remain independent and bought Comerica Bank-California's Insolvency Deposit Division in 1997... Comerica Inc., in turn, announced plans to acquire Imperial in $1.2 billion stock transaction, November 2000... Acquisition completed March 2001. L.A.'s Top Banks -- 2001 Sanwa Bank California Assets: $9 billion Net Income: $36.1 million Soon to be named United California Bank upon completion of a merger with Tokai Bank California... Total assets will be $11.4 billion... Merger was the result of an overseas merger between Japanese parents Sanwa Bank Ltd., Tokai Bank Ltd. and Toyo Trust and Banking Co... Newly-formed parent holding company, UFJ UFJ United Financial of Japan (bank) UFJ Upper Flex Joint Holdings Inc., will have about $780 billion in assets... One of the world's largest banking groups. Top Sanwa Executive Ryosuke Tamakoshi will be chief executive of United California on July 2. City National Corp. Assets: $8.9 billion Net Income: $33.6 million Parent company, City National Corp., recently completed acquisition of Los Angeles-based investment management firm, Reed, Conner & Birdwell... Assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. increased by approximately $1.2 billion... Jumped into the venture capital pool three years ago when it lured a Silicon Valley Bank exec into its camp... Made about 20 loans to technology startups in 1999... Increased loans to startups in 2000... City National came out strong in first quarter... Produced growth while reducing non-performing loans and assets. East West Bancorp Inc. Assets: $2.6 billion Net Income: $9.8 million Largest Los Angeles-based bank focused on the Chinese-American population... Solicits business from Asian companies seeking to expand into the United States... Reported record earnings at the end of first quarter... Recently announced plans to offer more than 100,000 discount vouchers on United Airlines to customers... Company claims offer will benefit large client base of immigrants and traveling business people. Top executive Dominic Ng came to the U.S. from Hong Kong in 1977. Took bank public in 1999. Cathay Bancorp Assets: $2.3 billion Net Income: $9.4 million Was originally founded to help Chinatown residents and businesses get loans and mortgages... Slow and steady in approach to growth... Moved to the East Coast in 1999 when it acquired Golden City Commercial Bank... Opened a loan production office in Houston the same year... Houston office was converted into a full-service branch in late 2000... Became a member of the Nasdaq Financial-100 index just a few months before... Has been ranked as the most efficient bank in California by Sheshunoff Information Services See Information Systems. . |
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