| Show D12 BusorEss The Salt Lake Tribune Sunday September 8 1991 Once Secure and Serene US Banking Industry Now Is 'Risky Business' BankAnzerica Chief Breaks Banker Image By Laura Myers rits : many successful California bankers He also started a family and got a master's degree in business administration and a doctorate in law from San Francisco's Golden Gate University After 22 years at Wells Rosenberg left in 1984 for a short-live- d stint as vice chairman of Crocker Bank The move came after Carl Reichardt — the other top lieutenant under Cooley — won the Wells Fargo CEO job No hard feelings developed and within months Rosenberg followed Cooley to Seafirst Washington state's largest bank Rosenberg was promised the CEO job upon Cooley's retirement but greeter opportunity knocked AW Clausen then CEO of BankAmerica wanted help to rescue it Founded as the Bank of Italy in 1904 BankAmerica hrd grown to become the world's largest bank from 1945 to 1979 but by the 1980s was mired in bad loans Rosenberg turned down Clausen at least twice according to Cooley but finally agreed in 1987 to become vice chairman and bead of BankAmerica's retail banking group after be was assured it could lead to chief executive On his first day on the new job be was greeted by –the worst morale I have ever been exposed to" Rosenberg told t PEESS ASSOCIATED fc SAN FRANCISCO — Richard M Rosenberg wears the dark salts of a banker but nothing :se about the boss of West Coast powerhouse BankAmerica Corp hints at the stereotyped image of his profession He's as quick with a quip as be is with a deft corporate decision His booming speeches make pol itirizns look wimpy Seemingly always in motion it's not hard to -imagine the stocky Hurricane" Itosenberg in his youth moving down the basketball court where as point guard be called the He has a good feeling for the d:7mics of the banking try" said Ted Paluszek indus- 1 a bank- ing analyst with Kidder Peabody & Co in New York 'He's show though not a one-ma- n associates Be's got working with him But he's the major guiding force" Considered a marketing genius during the 1970s Rosenberg concocted the scenic check and the bundled account a profhigh-quali- itable Rosen-berg- ty ' mainstay that hart-in- t combines checking savings and credit card services for customer convenience During the past four years he was key in the turnaround of BankAmerica He reinvigorated its enormous branch system boosted employee morale with personal visits and proved his mettle enough to win the job of chairman and chief executive officer of the San Francisco-base- d company in May 1990 Now Rosenberg 61 will head the nation's No 2 bank holding company if regulators and shareholders approve the merger of BankAmerica and Los Ange- Security Pacific the record $45 billion les-based Corp deal announced Aug 12 The merger would combine assets of about $190 billion The nation's No 1 bank Citicorp had assets of about $217 billion at the end of 1990 - "Dick's always wanted to run his own show" said Richard Cooley retired chief executive of Wells Fargo Bank and Seattle-Seafirst Corp places where Rosenberg answered to -- based Ji e1 The Press etimeectemed By Cyndia Zwahlen WS second-larges- 's named him one of the 25 most fascinating business people of be listens well" Born in Fall River Mass Rosenberg grew up during the Great Depression in the textile town about 50 miles outside Boston He wrote for his high school newspaper and at proved a scrappy point guard although be was never a star "He didn't see as much playing time as some but he'd get in there and get the job done when it was crunch time" said Bob Monahan a Boston Globe sportswriter who saw Rosenberg play intramural basketball when the two became friends at Suffolk University in Boston Rosenberg graduated in 1952 with a journalism degree from Suffolk where he edited the senior yearbook He managed a Rosenberg still the first to arrive at work each day put in 80-- hour weeks while visiting Promotion programs began Sales incentive and awards programs for employees won the bank new customers respect and profits In the past two years BankAmerica has started acquiring other big and small financial institutions for bargain prices in troubled times As in everything Rosenberg does be projects high confidence saying BankAmerica has learned from past mistakes of reacting too sluggishly ate refugees from Vietnam His first banking job in public relations came in 1962 at Wells Fargo — the proving ground for cost-conscio- us Sixte changes been mi room of Nearl: represei 30-per- cording ledy Terri ed fron deputy bilities divisioi are 11 Quality The 5 respons ernmen ices— courts Stateho tant city Joan 0 been a The Tri a desk (Texas) previou for The The s— eas as e ronmet and sox Assista rick wi porter The expand lion of only ge nic grol lions youth Cr er branch offices twice a week few marketing-busines- s classes as well besting his classmates by getting mostly A's After college Rosenberg entered Naval officer's school in Newport RI and as a Navy Reserve commander helped evacu- "I'm hearing banking erecudoes say 'I think this is a good time to get out: — John Westwater corporate bead hunter "We're at a crossroads in the barking industry" said Campbell Chaney an analyst at Sutro & Co in San Francisco Ten years after deregulation the industry is faced with a "very painful consolidation" be said Gone forever are the days when the term "bankers' hours" alluded to a serene and predictable profession where lifetime job security was virtually assured With the advent of deregulation and the prospects of massive bank reform looming banks today are emlooking for ployees with a knack for bringing in new bminess And while most won't admit it the younger and cheaper the better say some industry observers Even the new breed of bank warriors are finding a shrinking 1990 The cuts are part of a plan to market for their skills "I'm hearslash expenses at the merged bank ing banking executives say 'I by $1 billion annually within three thirk" this is a good time to get said John Westwater manyears of the deal being completed out aging director of the Los Angeles The merger in which BankAmerifirm ca would be the surviving entity is office of executive-searc- h Stuart to the Spencer be completed by expected The impact even is felt at the first quarter of 1992 the university level "We find banks Employees let go after will a much have tougher are still interviewing but they are merger time finding jobs than their prede- not hiring the numbers they were cessors in the Wells Fargo-Crock- before" said Charlene Andres asNational Bank merger sistant director of University of five years ago The economy still Southern California's MBA Career Services program was growing then One San Jose Calif banker has Today good jobs for bank types are in short supply due to an in- had enough After being hired by a dustry consolidation and stingy major bank then laid off six hiring plans by most companies months later in a restructuring is biding his time the hard hit by the recession The number of banks already as branch manager at a small comhas declined nationwide by 2100 munity bank It was a lateral move a choice or 17 percent in the past decade In the next five to 10 years the he says "more and more" of his American Bankers Association colleagues are forced to take says an additional 150000 jobs "They do it just to stay in the be lost game It's almost a desperate tacOthers say the number will be tic" said the banker who did not st ant to be identified far higher 1989 for more than 16 years Cooley -He's been ready for a while His time has finally come Dick's the banker of the '90s imaginative and driven He laughs and DAILY NEWS LOS ANGELES — Headhunter Robert Rollo was on business in New York when the calls started coming in — not only to his office but to his hotel room They were calls for help from senior executives at Los Angeles-base- d Security Pacific Corp and San Francisco-base- d BankAmerica Corp The day before the two banks announced plans to merge and a list of senior executives picked to rim the new company had been circulated Those passed up weren't wasting any time But Rollo managing director of the search firm KornFer7 International could offer little encouragement "Future prospects are very bleak in the industry let alone in Southern California" he said Between 10000 and 20000 jobs will be cut as a result of the proposed merger most by the end of next year That's about as many as were lost in the entire barking industry in California since March Fortune Magazine when it t Poised to head the nation's banking company Richard M Rosenberg leans on desk in San Francisco office ANGELES Ti' The cent d from again weak compa percen "Cot pletely est rat cards banks compe Ausub econot 1 versity ageme when — the custon drop t as a says 1 Mutual Funds Alissing Boat on Baby Boomers? By Thomas Watterson - THE BOSTON GLOBE Irben the universal IRA was in- troanced in 1981 Gerald Penitt ENV tank employees standing on street earners in Chicago handing mg flyers on the tax advantages of Individual Retirement Accounts InIhe first six to nine months he recalls the banks scooped up millions of dollars in IRA money before many mutual funds realized what they were missing Perritt is editor of the Mutual Fund Letter in nil cago Now be believes the funds could be in danger of arriving late for an even bigger party: Baby boomers approaching middle age and ientering their prime savings and investing years In most cases Perritt says the funds have done -zip" about looking for ways to reach this huge market :The funds are missing the boat" he says "Fortunately they usually manage to swim fast ennugh to catch up with the boat later" 'he industry is not ignorant of the baby boom generation technically the 77 million people born between 1946 and 1964 who make up almost a third of the US population Recently the Investment Company Institute the mutual fund trade group completed a survey of what kind of investment advice baby boomers want about mutual funds and how much they are willing to pay for it Later on the two market research firms that conducted the ICI survey plan to bold six focus groups around the country to ask people to look at different combinations of service price type of advice and method of payment "The traditional pattern has had two systems load and says Thomas H Mack of Short Hills NJ owner of one of the research firms With the load system people receive and pay for information about funds and get &Mee on which ones to buy In the system people make their own selections and — in most cases — do not pay a load or sales fee "One thought we have is That something in between is likely to evolve" Mack says Since baby boomers have been exposed to a variety of personal advice information in magazines and newspapers for several years many of them now want to make their own investment decisions but still want a little "hand holding" be president at the Vanguard Group in Valley Forge Pa -- Some of our funds have twice as many people under 44 in them as they did five years agoKnowing that many younger people who use a financial plany ner use a planner Vanguard is also working more-- closely with these professionals Our financial planner business has grown dramatically- Mattes says a Attracting significant amount of baby boomers' money will require a substantial marketing and sales effort which will be easier says One step in that direction may be the service offered by Fidelity Investments in Boston For a fee equal to 1 percent of assets a personal finance specialist will go over a customer's financial goals CLASSES how For information cat no-loa- for the largest fund companies to afford Unless the smaller firms can identify and fill a specific investment niche they are going to get killed" Perritt says As for the baby boomers themselves they have a long way to go too Almost 60 percent of their savings and investments are in ronservative savings accounts money market deposit accounts and certificates of deposit according to the ICI study If the funds do offer more education and -hand bolding" and if the boomers take advantage of it they will be better off fee-onl- no-lo- ad :771"1111211EMnlir-04i5- t gher I Tax-Fr-ee t Yielti BOfl4i1 Diversified Portfolio of Quality Municipal Bonds A Nationally '' Spartan Municipal Income Portfolio uses the Spartan e Approadlr' to maximize yields by minimizing fund expenses And you pay onh for the transactions vou makef Pk& in addition to federally e income the fund offers you the ' ' 'ot tot t g I ttt tax-fre- DALE CARNEGIE COURSES in Effective Speaking - 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