First Nationwide Bank was incorporated as a publicly traded company in 1982 as First Nationwide Financial Corporation. The evolution of the giant First Nationwide during the early 1980s reflected a trend of consolidation in the financial services industry that gained momentum in the early and mid-1980s. The emerging paradigm at the time was that financial "supermarkets" would eventually dominate the financial services and banking landscape; many people believed that giant, diversified, national financial networks, which would benefit from economies of scale made possible by new information technology, would take the place of local and regional financial institutions. Because it was the first savings and loan to expand nationally, First Nationwide was considered on the cutting edge of the financial supermarket trend. For that reason the company caught the eye of automobile giant Ford Motor Company
Ford purchased First Nationwide Financial Corporation, along with some bank branches in Hawaii, in 1985 for $493 million. By that time, the savings and loan was sporting 177 branches in four states and a portfolio with about $11.6 billion in assets. Ford management viewed the buyout as a diversification with vast potential. Ford would buy up troubled savings and loans across the nation and then assemble them into a cohesive, efficient financial supermarket--the first truly nationwide thrift in the United States. In 1986 Ford changed the name of First Nationwide Savings (the chief subsidiary of First Nationwide Financial Corporation) to First Nationwide Bank, a federal savings bank. Ford also acquired new branches from a troubled thrift in Ohio.
After years of declining profits, Ford found a buyer for First Nationwide Bank early in 1994. The company was purchased by Dallas-based First Madison Bank for a total of $1.1 billion--Ford took a $440 million write-off and retained $1.2 billion of the thrift's bad loans. It was the largest transaction in the history of the savings and loan industry. First Madison was a thrift founded in 1993 by financier Ronald O. Perelman. Perelman created the thrift with assets left over from the sale of First Gibraltar, his troubled thrift that he sold to BankAmerica Corp. in 1993. Perelman was attracted to the deal by First Nationwide's giant $6 billion portfolio of single-family-home loans, but also by its operations in California and Florida. Perelman appointed Gerald J. Ford, former head of First Gibraltar, as chief executive at First Nationwide. He also dropped the First Madison name in favor of First Nationwide.
Close Up of Vignette:
Noncumulative Perpetual Preferred Stock, specimen, late 1900’sPrinter: American Bank Note Company Dimensions:
8” (h) x 12” (w)State: CA-California Subject Matter: Finance and Related
| Banks and Credit Unions
| Specimen Pieces Vignette Topic(s): Male Subject
| Female Subject
| Child Subject Condition:
No fold lines, punch hole cancels in signature areas and body, very crisp.