In contrast to broad-based downsizing that accompanies most corporate mergers, they said there would be no layoffs of front-line workers at MUFG Union's branches.
Bancorp's chief executive, said. It's also important because the front-line branch employees are the ones working most directly with customers. Bank branch, executives said they expect there will be plenty of opportunities for branch employees even if some locations are eventually merged or closed. Bank's chief financial officer, said. It's the largest deal by the Minneapolis-based banking company since , when it merged with Milwaukee-based Firstar Corp.
It's also the first purchase of another banking operation by U. Bank since when it bought Charter One branches in Chicago. Formed by dozens of mergers when regulatory changes in the s sparked consolidation, U. Bank today is the nation's No. But until now, it has been on the sidelines of the multiyear wave of deals shaped by new competitive pressures in banking.
They have a good track record, and they certainly have the valuation to do something. In discussing the deal, executives from both U. Bank and MUFG emphasized that banks need to get bigger to develop digital services and to spread costs across a larger base of customers and assets.
Banks are not just competing with banks, but they're competing with technology platforms and fintech players as well. Bank will pick up about 1 million consumer customers and , small-business customers with MUFG Union. Kaspare Cohn died in and was followed by Ben Meyer as president of the bank.
Just before America's entry into World War I, the city of Los Angeles and the state of California were starting their long period of growth and development.
Businesses, restaurants, and civic organizations were being created all over the state, and many of these enterprises were founded by people who had just arrived.
The search for capital was at an all time high, yet risks were understandably great, and the banking community was conservative in its loan policies. In addition, under the direction of Meyer, the bank began to garner a reputation as an astute lender. Meyer had an uncanny ability to provide loans to those entrepreneurs who not only were successful in their business endeavors, but were also able to promote the development of the city of Los Angeles.
In , the bank was growing at such a fast rate that it opened a new headquarters on Eighth and Hill Streets and, just five years later, the bank's continued growth required an enlargement and significant improvement of these facilities.
Much of the bank's business during this time was based on the civic leadership and personal qualities of Ben Meyer. As president of Cedar Hospital, Meyer visited the hospital every morning, greeting both staff and patients.
While attending a ballet one evening at the Hollywood Bowl, Meyer discovered that the performance was in danger of being canceled since the stagehands had not been paid their wages. Meyer went backstage, presented the stagehands with a personal check for what they were owed, and the show was performed.
During the entire decade of the s, Meyer presided over Union Bank's period of uninhibited growth. Deposits were increasing, the loan department was successful in its choice of entrepreneurs, and assets continued to rise at an astounding rate. Like every bank across the nation, however, Union Bank was affected by the stock market crash of Yet the bank survived the crash and the worst of the Great Depression.
The deft management of the bank's assets and business activities during this time was largely due to the talent of Ben Meyer. The early s were disruptive for the entire United States since men of all ages were involved in the military conflicts of World War II. Yet even below normal staff levels, Union Bank continued to expand its services and extend its asset base. The bank was the first bank throughout the entire western part of United States to implement a program known as "bank-by-mail service.
Since the bank had a policy of not opening branch offices, the nearby mailbox was a highly successful substitute. Union Bank was also one of the first banks throughout the western United States to provide its customers with "lock-box banking," a new development for collecting payments. Some senior executives at Union also are expected to depart in the coming months, he said. Sources in the bank have said for months that staff morale was low because of fears of layoffs connected with the anticipated sale of the institution.
Standard Chartered put Union up for sale to shore up its capital position, which had been weakened severely last year by the provisions it made to cover potential losses on loans to Third World nations. The sale of Union Bank is the latest chapter in a story that is changing the face of the U. Details in Business. All Sections.
About Us. In the early years of the 20th Century, founder Kaspare Cohn, a prosperous Los Angeles wool merchant, provided banking services to many of the Basque shepherds whose wool he purchased. When state banking authorities caught wind of Cohn's private banking activities, they ordered him to stop — or to regularize the business with a charter.
Union was the first to be acquired. Mix said the sale to U. But the loss of a charter with such deep roots in the state still burns, he said. Community Banking. Credit unions. Log In. Follow Us In Real Time twitter facebook linkedin. By John Reosti CloseText.
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