Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, July 20, 1994 TAG: 9407200061
SECTION: BUSINESS PAGE: C8 EDITION: METRO
SOURCE: Associated Press
DATELINE: LENGTH: Medium
The merger, announced in January, strengthens San Francisco-based BankAmerica's position as the nation's second-largest banking company and gives it a major presence in Midwestern business banking, Continental's specialty.
Continental, the nation's 33rd-largest bank, is the survivor of near-failure a decade ago.
The Federal Reserve said it received comments from opponents of the merger that accused the banks of neglecting minority groups and low-income families. But the Fed said both banks have received at least satisfactory ratings from inspectors who have analyzed their performances in meeting community standards.
The banks have participated in a variety of community and economic development programs to help the needy, the Fed said.
The two companies had said they expected to eliminate 500 to 800 jobs as offices in New York, Chicago, Los Angeles and other major cities are combined. BankAmerica has 96,000 workers, and Continental has 4,200.
The merger raises BankAmerica's assets to about $209.6 billion, leaving it second only to the nation's biggest banking company, Citicorp of New York, which has about $220 billion in assets. Continental has assets of $22.6 billion.
After the merger, Continental will be renamed Bank of America Illinois.
Continental was rescued from the brink of failure by federal bank regulators in May 1984. A rumor carried on a Japanese news service that Continental was struggling with a cash-flow crisis touched off what was the largest bank run in history at the time.
by CNB