Magazine article American Banker

Glendale Federal, on Heels Merger Pact, Setting Up a CRA Program for Businesses

Magazine article American Banker

Glendale Federal, on Heels Merger Pact, Setting Up a CRA Program for Businesses

Article excerpt

The lead subsidiary of Glendale, Calif.-based Golden State Bancorp said it plans to create a community development loan program for businesses in low- and moderate-income areas.

Glendale Federal Bank promoted vice president Larry Trujillo to run the program.

Golden State, with $16 billion of assets, agreed in February to be bought by First Nationwide Holdings of San Francisco. In its approval of the merger, the Office of Thrift Supervision required Golden State to provide more counseling to low-income and minority business owners.

In an interview, Mr. Trujillo said he would stay on after the merger is completed.

The deal, which would combine Glendale Federal with First Nationwide's California Federal Bank to form the nation's No. 3 thrift, with $51 billion of assets, is expected to close in the third quarter.

The new thrift is to be run by senior executives of CalFed. As part of the deal, they promised to make $25.1 billion in community development loans, including $850 million in small-business loans, over 10 years.

Mr. Trujillo said his position was created before the merger was planned.

Both California thrifts became active in small-business lending in 1996. Mr. Trujillo said he plans to work with organizations that have fought Glenfed's past acquisitions because of resulting branch closings.

"Some organizations have chosen to protest us," Mr. Trujillo said. "But I want to work with them to resolve their concerns."

One of those groups is the California Reinvestment Committee, a community-oriented nonprofit, based in San Francisco. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.