What was the primary trade name used by First Interstate Bancorp?

The primary trade name used by First Interstate Bancorp was First Interstate Bank. This name was adopted system-wide to promote greater public recognition and internal consistency across its operations.

What were the former names or parent companies of First Interstate Bancorp before it adopted its final name?

Before becoming First Interstate Bancorp, the company operated as Firstamerica Corporation from 1958 to 1961 and then as Western Bancorporation from 1961 to 1981. It was originally spun off from Transamerica Corporation.

What was the company type of First Interstate Bancorp?

First Interstate Bancorp was a public company, as indicated by its trading on the New York Stock Exchange. It functioned as a bank holding company, meaning it owned and controlled other banks.

On which stock exchange was First Interstate Bancorp traded, and what was its ticker symbol?

First Interstate Bancorp's stock was traded on the New York Stock Exchange under the ticker symbol "I".

When was First Interstate Bancorp founded, and where was it headquartered?

First Interstate Bancorp was founded on July 1, 1958, and was headquartered in Los Angeles, California.

When did First Interstate Bancorp cease to exist as an independent entity?

First Interstate Bancorp ceased to exist as an independent entity on April 1, 1996, when it was acquired by Wells Fargo.

What is the current status of the First Interstate name and logo in the banking world?

Although First Interstate Bancorp was acquired by Wells Fargo, the name and logo continue to be used by First Interstate BancSystem, which has operated under a franchise agreement since 1984. As of 2023, this entity maintains a significant presence with 306 locations.

How is First Interstate Bancorp described in terms of its size within the US banking industry at its peak?

At its peak, First Interstate Bancorp was the nation's eighth largest banking company, headquartered in Los Angeles.

Who founded Transamerica Corporation, and when did it begin business?

Amadeo Giannini, whose parents were Italian immigrants, founded Transamerica Corporation. It began business in 1928.

What was the initial scope of Transamerica Corporation's activities when formed by Amadeo Giannini?

When formed by Amadeo Giannini, Transamerica Corporation began business with $1.1 billion in assets and encompassed both banking and non-banking activities.

How did Transamerica Corporation expand its banking operations between the 1930s and mid-1950s?

Between the 1930s and the mid-1950s, Transamerica Corporation expanded by acquiring numerous banks and other financial corporations located throughout the western United States, laying the groundwork for the future First Interstate system.

What regulatory action led to the separation of Transamerica Corporation and Bank of America?

Regulators forced the separation of Transamerica Corporation and Bank of America in 1953, citing concerns under the Clayton Antitrust Act, which aims to prevent anti-competitive business practices.

Which specific act of Congress was cited in the regulatory action forcing the separation of Transamerica and Bank of America?

The regulatory action cited Section 7 of the Clayton Antitrust Act (15 U.S.C.A. § 18) in its order against Transamerica Corporation to enforce compliance.

How did the Bank Holding Company Act of 1956 impact Transamerica's banking operations?

The Bank Holding Company Act of 1956 imposed new restrictions on companies that owned multiple banks, which necessitated the spin-off of Transamerica's banking operations.

What was the name of the entity formed in 1958 when Transamerica's banking operations were spun off?

In 1958, Transamerica's banking operations were spun off and became known as Firstamerica Corporation.

What business did Transamerica Corporation continue to pursue after spinning off its banking operations?

After spinning off its banking operations, Transamerica Corporation continued to focus on its insurance and other non-banking business ventures.

What was the initial name of the spun-off banking entity from Transamerica, and what was its operating name?

The spun-off banking entity was named Firstamerica Corporation, and it conducted business under the name First Western Bank and Trust Company.

When did Firstamerica Corporation change its name to Western Bancorporation?

Firstamerica Corporation changed its name to Western Bancorporation in 1961.

What was the name of the retail banking operation under Western Bancorporation, particularly after acquiring California Bank?

After acquiring the Los Angeles-based California Bank, Western Bancorporation renamed its retail operations United California Bank (UCB).

What was the primary motivation for Western Bancorporation's expansion in the 1960s?

Western Bancorporation's significant expansion in the 1960s was largely driven by a desire to compete with Bank of America, which was the largest bank in California at the time.

What financial service companies did Western Bancorporation establish in the 1970s?

In the 1970s, Western Bancorporation established the Western Bancorporation Mortgage Company in 1974 and the Western Bancorp Venture Capital Company in 1979.

How did Western Bancorporation's affiliated banks handle credit card operations, similar to Bank of America's BankAmericard?

Similar to Bank of America's BankAmericard, United California Bank (UCB) issued its own credit card, initially called "Master Charge." Later, UCB spun off its Master Charge operations to Master Card International and renamed its card to MasterCard, mirroring Visa's earlier move.

What significant event occurred in 1970 involving United California Bank of Basel, Switzerland?

In 1970, the affiliated bank United California Bank of Basel, Switzerland, collapsed following unauthorized trades in cocoa and silver futures.

Who was the president of the United California Bank of Basel that faced fraud charges?

Paul Erdman, the president of United California Bank of Basel, was among the bank's officers who spent time in jail on fraud charges related to the bank's collapse.

When did the company officially change its name to First Interstate Bancorp?

The company officially changed its name from Western Bancorporation to First Interstate Bancorp in June 1981.

What was the strategic advantage of adopting the "First Interstate" name system-wide?

Adopting the "First Interstate" name system-wide served to promote greater public recognition of the company and ensure internal consistency across its various banking operations.

How did First Interstate Bancorp adapt to the deregulation of the banking industry in the 1980s?

In response to banking industry deregulation during the 1980s, First Interstate Bancorp expanded into new areas of financial services and acquired additional banks.

What new areas of financial services did First Interstate Bancorp enter in 1984?

In 1984, First Interstate Bancorp branched into merchant banking by purchasing Continental Illinois Ltd., entered equipment leasing with the acquisition of Commercial Alliance Corporation of New York, and broadened its mortgage banking activities by acquiring Republic Realty Mortgage Corporation.

What was the value of First Interstate Bancorp's hostile takeover attempt of Bank of America in 1986 and 1987?

First Interstate Bancorp attempted a hostile takeover of Bank of America valued at $3.2 billion.

Which Houston-based bank did First Interstate acquire after its bid for Bank of America failed?

After its bid for Bank of America was defeated, First Interstate acquired Allied Bancshares, a bank based in Houston.

What factors contributed to First Interstate Bancorp's financial difficulties in the late 1980s and early 1990s?

First Interstate Bancorp faced financial difficulties due to bad real estate loans and a severe recession in California during the late 1980s and early 1990s.

What was First Interstate Bancorp's strategy for recovery during the early 1990s?

During the early 1990s, First Interstate Bancorp concentrated on rebuilding and rejuvenating its existing operations rather than pursuing new acquisitions.

Who was the Chairman and CEO of First Interstate Bancorp during its recovery in the mid-1990s?

Edward M. Carson served as the Chairman and CEO of First Interstate Bancorp during its recovery in the mid-1990s.

What acquisition did First Interstate Bancorp make in Washington state in 1994?

In 1994, First Interstate Bancorp acquired 15 branches in Washington state from the failed Great American Bank.

When did Wells Fargo make its initial hostile bid for First Interstate Bancorp, and what was its approximate value?

Wells Fargo made its initial hostile bid for First Interstate Bancorp in October 1995, with an approximate value of $10.8 billion.

Which other major banking corporations emerged as potential "white knights" during the takeover battle for First Interstate Bancorp?

Potential "white knights" that emerged during the takeover battle included Norwest Corporation, Bank One Corporation, and First Bank System.

Which bank initially reached a formal merger agreement with First Interstate Bancorp in November 1995?

First Bank System initially reached a formal merger agreement with First Interstate Bancorp in November 1995, with the deal valued at $10.3 billion.

Why was First Bank forced to withdraw from the takeover battle for First Interstate Bancorp?

First Bank System was forced to withdraw from the takeover battle in mid-January 1996 due to regulatory difficulties concerning the structure of its offer.

What was the final agreed-upon value for the merger between Wells Fargo and First Interstate Bancorp?

The final merger agreement between Wells Fargo and First Interstate Bancorp was valued at $11.3 billion in stock.

On what date did Wells Fargo complete its acquisition of First Interstate Bancorp?

Wells Fargo completed its acquisition of First Interstate Bancorp on April 1, 1996.

How many jobs did Wells Fargo announce it would eliminate following the acquisition of First Interstate Bancorp?

Following the acquisition, Wells Fargo announced the elimination of 7,200 jobs.

When did First Interstate BancSystem of Montana enter into a franchise agreement with First Interstate Bancorp?

First Interstate BancSystem of Montana entered into a franchise agreement with First Interstate Bancorp of California in 1984.

What was the outcome for the Montana organization regarding the First Interstate name and logo after the 1996 split?

After First Interstate Bancorp was split up in 1996, the Montana organization successfully negotiated to retain the well-known First Interstate name and logo.

As of 2023, how many locations does the current First Interstate BancSystem operate, and in which regions are they primarily located?

As of 2023, the current First Interstate BancSystem operates 306 locations in 14 states, primarily in the northern Great Plains and Rocky Mountain regions.

What was the method used by the perpetrators in the 1986 Hollywood bank heist?

The perpetrators of the 1986 Hollywood bank heist tunneled under the bank from an extensive network of tunnels over several months, utilizing tools like hammer drills and power saws.

Approximately how much cash was stolen in the 1986 Hollywood heist?

Approximately US$270,000 in cash was stolen in the 1986 Hollywood heist.

What was the estimated value of the contents stolen from the safe deposit boxes in the 1986 Hollywood heist?

The contents of 36 safe deposit boxes, valued at US$2,500,000, were stolen in the 1986 Hollywood heist.

What underground system did the robbers utilize to access the bank in the 1986 Hollywood heist?

The robbers utilized the underground storm drain system of Los Angeles to access the First Interstate Bank in Hollywood for the 1986 heist, traveling through it via all-terrain vehicles.

What type of firearms were brandished by the robbers in the 1992 Victorville heist?

The robbers in the 1992 Victorville heist brandished AK-47 firearms.

How much cash was stolen in the 1992 Victorville heist?

US$331,951 in cash was stolen during the 1992 Victorville heist.

First Interstate Bancorp Wiki: The First Interstate Chronicle: A Legacy in American Banking

Dive in with Flashcard Learning!

When you are ready...
🎮 Play the Wiki2Web Clarity Challenge Game🎮

Corporate Profile

Identity

First Interstate Bancorp was a prominent, now-defunct, American bank holding company. It operated as a significant entity within the United States financial landscape.

Scale

At its zenith, First Interstate Bancorp stood as the nation's eighth-largest banking company, managing substantial assets and a vast network of operations.

Headquarters

The strategic and operational heart of First Interstate Bancorp was located in Los Angeles, California, a key financial hub in the Western United States.

Status

The company ceased to exist as an independent entity following its acquisition by Wells Fargo in 1996. However, its name and logo persist through a franchise agreement.

Foundational Roots

Giannini's Vision

The genesis of First Interstate's lineage can be traced back to 1928, with the formation of Transamerica Corporation by Amadeo Giannini. Giannini, son of Italian immigrants, established Transamerica as a holding company to consolidate his burgeoning financial ventures, which commenced with $1.1 billion in assets, encompassing both banking and non-banking activities.

Regulatory Separation

By 1953, regulatory pressures, specifically stemming from the Clayton Antitrust Act, necessitated the separation of Transamerica Corporation and Bank of America. This legal mandate initiated a restructuring that would pave the way for the future First Interstate system.

Birth of Firstamerica

In 1958, adhering to the restrictions imposed by the Bank Holding Company Act of 1956, Transamerica's banking operations—comprising 23 banks across 11 western states—were divested. This significant divestiture resulted in the establishment of Firstamerica Corporation, marking the formal beginning of the entity that would evolve into First Interstate Bancorp.

Shifting Identities

Western Bancorporation

Firstamerica Corporation underwent a significant rebranding in 1961, changing its name to Western Bancorporation. Concurrently, its primary retail banking arm was renamed United California Bank (UCB), following the acquisition of the Los Angeles-based California Bank.

Credit Card Innovation

During the 1970s, UCB actively participated in the burgeoning credit card market. It introduced its own locally issued card, "Master Charge," and later, mirroring Bank of America's move with Visa, spun off its franchised credit card operations to MasterCard International, rebranding its card as "MasterCard."

Brand Consolidation

A pivotal moment occurred in June 1981 when the company officially adopted the name First Interstate Bancorp. This strategic rebranding unified the diverse subsidiary banks under a single, recognizable system-wide brand, enhancing public recognition and operational consistency.

Swiss Bank Incident

The corporate history was not without its challenges. In 1970, an affiliated bank, United California Bank of Basel, Switzerland, collapsed due to unauthorized trades in cocoa and silver futures, leading to legal repercussions for several of its officers.

Aggressive Growth

1980s Deregulation

The 1980s witnessed significant expansion for First Interstate, fueled by the deregulation of the banking industry. The corporation ventured into new financial service areas, establishing entities like the First Interstate Discount Brokerage in 1983 and broadening its merchant banking and mortgage operations through strategic acquisitions.

Takeover Ambitions

In a bold move reflecting its competitive drive, First Interstate launched a significant hostile takeover attempt valued at $3.2 billion against the ailing Bank of America in 1986 and 1987. Although unsuccessful, this demonstrated the company's aggressive posture in the market.

Geographic Reach

The company's expansion extended geographically. Notably, in 1986, it acquired Allied Bancshares, a Houston-based bank, marking a significant entry into the Texas market. Further expansion occurred in 1994 with the acquisition of 15 branches in Washington state from the failed Great American Bank.

Diversification

Beyond traditional banking, First Interstate diversified its portfolio. Acquisitions included Continental Illinois Ltd. for merchant banking and Commercial Alliance Corporation of New York for equipment leasing, showcasing a strategy to capture broader financial service markets.

Navigating Turbulence

Economic Headwinds

The late 1980s and early 1990s presented considerable challenges for First Interstate. The company grappled with substantial losses, exacerbated by a severe recession in California and a portfolio burdened by non-performing real estate loans. Losses were reported in the hundreds of millions for several years during this period.

Strategic Realignments

In response to these financial difficulties, First Interstate shifted its focus towards internal rejuvenation. This involved divesting several non-core and unprofitable subsidiaries, including its equipment leasing unit, a government securities operation, and significant portions of its wholesale banking division. This strategic pruning aimed to stabilize the company's financial health.

Leadership and Recovery

Under the leadership of Chairman and CEO Edward M. Carson, the bank began a process of recovery. By the mid-1990s, First Interstate had regained considerable financial footing, positioning itself for future strategic moves despite the ongoing consolidation trend within the banking industry.

The Wells Fargo Merger

Hostile Bid and Competition

In October 1995, amidst a period of intense industry consolidation, Wells Fargo initiated a hostile takeover bid for First Interstate, initially valued at $10.8 billion. This move attracted competing interest, with Norwest Corporation, Bank One Corporation, and First Bank System emerging as potential suitors.

Merger Agreement

After initial negotiations and a serious bid from First Bank System, which ultimately faced regulatory hurdles, First Interstate entered into a definitive merger agreement with Wells Fargo in January 1996. The final transaction was valued at $11.3 billion in stock.

Integration and Restructuring

The acquisition was completed on April 1, 1996. Wells Fargo subsequently announced significant restructuring plans, including the elimination of approximately 7,200 jobs, as it integrated the operations of First Interstate Bancorp into its own network.

Enduring Influence

The BancSystem Continuation

Remarkably, the First Interstate name and logo continue to exist. Since 1984, First Interstate BancSystem of Montana had operated under a franchise agreement. Following the 1996 acquisition, this entity successfully negotiated to retain the well-recognized brand. Today, First Interstate BancSystem operates numerous locations primarily in the northern Great Plains and Rocky Mountain regions.

Stock Market Presence

Prior to its acquisition, First Interstate Bancorp was publicly traded on the New York Stock Exchange under the ticker symbol "I," reflecting its status as a major publicly held financial institution.

Infamous Incidents

Hollywood Tunnel Heist (1986)

In June 1986, a sophisticated criminal group executed a daring heist at the First Interstate Bank in Hollywood. Over several months, they tunneled approximately 100 feet from an underground storm drain system directly into the bank's vault. Using all-terrain vehicles, generators, and heavy digging equipment, they absconded with approximately $270,000 in cash and the contents of 36 safe deposit boxes valued at $2.5 million.

Victorville Chase (1992)

On January 24, 1992, four armed robbers, equipped with AK-47s, stormed the Interstate Bank in Victorville, California. They escaped with $331,951. The subsequent police pursuit resulted in what was then the longest high-speed chase on record. The perpetrators were apprehended hours later and received lengthy prison sentences. This event was notably featured on the crime drama series "Rescue 911."

Teacher's Corner

Edit and Print this course in the Wiki2Web Teacher Studio

Edit and Print Materials from this study in the wiki2web studio

Click here to open the "First Interstate Bancorp" Wiki2Web Studio curriculum kit

Use the free Wiki2web Studio to generate printable flashcards, worksheets, exams, and export your materials as a web page or an interactive game.

True or False?

Test Your Knowledge!

Gamer's Corner

Are you ready for the Wiki2Web Clarity Challenge?

Learn about first_interstate_bancorp while playing the wiki2web Clarity Challenge game.

Unlock the mystery image and prove your knowledge by earning trophies. This simple game is addictively fun and is a great way to learn!

Play now

Explore More Topics

Discover other topics to study!

biathlon world championships 2002

References

A full list of references for this article are available at the First Interstate Bancorp Wikipedia page

Feedback & Support

To report an issue with this page, or to find out ways to support the mission, please click here.

Disclaimer

Important Notice

This page was generated by an Artificial Intelligence and is intended for informational and educational purposes only. The content is derived from publicly available data and may not be entirely comprehensive, accurate, or up-to-date. Historical financial data and corporate structures can be complex and subject to interpretation.

This is not financial or investment advice. The information provided herein is not a substitute for professional consultation regarding financial matters, corporate history, or investment strategies. Always consult with qualified financial advisors, historians, or legal professionals for specific guidance related to financial institutions and their operations.

The creators of this page are not responsible for any errors or omissions, or for any actions taken based on the information provided. Users are encouraged to consult primary sources and conduct their own due diligence.

The First Interstate Chronicle

💡 Dive in with Flashcard Learning! 💡

Corporate Profile 🏢

🏦 Identity

📊 Scale

📍 Headquarters

⏳ Status

Foundational Roots 🌱

👨‍💼 Giannini's Vision

⚖️ Regulatory Separation

🚀 Birth of Firstamerica

Shifting Identities 🔄

🏷️ Western Bancorporation

💳 Credit Card Innovation

🏢 Brand Consolidation

🇨🇭 Swiss Bank Incident

Aggressive Growth 📈

📜 1980s Deregulation

⚔️ Takeover Ambitions

🌍 Geographic Reach

💼 Diversification

Navigating Turbulence 🌊

📉 Economic Headwinds

🛠️ Strategic Realignments

💡 Leadership and Recovery

The Wells Fargo Merger 🤝

💰 Hostile Bid and Competition

📝 Merger Agreement

✂️ Integration and Restructuring

Enduring Influence 💡

🔗 The BancSystem Continuation

📈 Stock Market Presence

Infamous Incidents 🚨

🚇 Hollywood Tunnel Heist (1986)

🚗 Victorville Chase (1992)

Teacher's Corner 🧑‍🏫

Edit and Print this course in the Wiki2Web Teacher Studio

True or False? 🤔

❓ Test Your Knowledge! ❓

Gamer's Corner 🎮

Are you ready for the Wiki2Web Clarity Challenge?

Explore More Topics

📜 Discover other topics to study!

References

📜 References

Feedback & Support 👍

To report an issue with this page, or to find out ways to support the mission, please click here.

Disclaimer ⚠️

📜 Important Notice

Dive in with Flashcard Learning!

Corporate Profile

Identity

Scale

Headquarters

Status

Foundational Roots

Giannini's Vision

Regulatory Separation

Birth of Firstamerica

Shifting Identities

Western Bancorporation

Credit Card Innovation

Brand Consolidation

Swiss Bank Incident

Aggressive Growth

1980s Deregulation

Takeover Ambitions

Geographic Reach

Diversification

Navigating Turbulence

Economic Headwinds

Strategic Realignments

Leadership and Recovery

The Wells Fargo Merger

Hostile Bid and Competition

Merger Agreement

Integration and Restructuring

Enduring Influence

The BancSystem Continuation

Stock Market Presence

Infamous Incidents

Hollywood Tunnel Heist (1986)

Victorville Chase (1992)

Teacher's Corner

True or False?

Test Your Knowledge!

Gamer's Corner

Discover other topics to study!

References

Feedback & Support

Disclaimer

Important Notice