| Security Pacific National Bank |
Article Index for Security |
Website Links For Security |
Information AboutSecurity Pacific National Bank |
| CATEGORIES ABOUT SECURITY PACIFIC BANK | |
| defunct banks of the united states | |
| history of los angeles | |
| bank of america legacy banks | |
| companies established in 1870 | |
| 1992 disestablishments | |
|
HISTORY Founded in 1870 , the bank earned a reputation for aggressive and creative business practices and benefitted from economic and population growth in the Western United States . By the mid- 20th Century it had an international presence, and was ranked the fifth-largest Bank in the United States and third-largest in California in terms of deposits. In 1975, Security Pacific Bank contructed a 55-story tower in downtown Los Angeles, now known as Bank Of America Plaza . In 1978 , computer consultant Stanley Rifkin learned the electronic codes Security Pacific used to Telegraph funds to other banks. On October 25 he stole $10,200,000 from a non-existent account, executing one of the largest Bank Robberies in history. He used the funds to buy some 115,000 Russia n Diamond s in Switzerland , which he smuggled back into the United States and attempted to sell, but he was captured. Security Pacific took ownership of the diamonds but received few offers for such a large quantity. Eventually it was forced to sell them on unfavorable terms to a Liechtenstein firm affiliated with the De Beers company. On May 9 , 1980 five men robbed the Security Pacific branch in Norco, California . They were among the most heavily armed bank robbers in history, carrying Semi-automatic Firearm s, Handgun s, and improvised explosive devices, and succeeded not only in stopping several patrol cars but forcing a San Bernardino police helicopter to give up pursuit. In 1985 a Class Action Lawsuit against Security Pacific accused it of overcharging some 2,500 Trust accounts going back to 1974 . In 1988 , Security Pacific denied a job to Hacker Kevin Mitnick for his failure to disclose prior convictions. Four days later, a false Press Release was circulated stating that the bank had lost $400 million in the first quarter, hurting the bank's share price. The Federal Bureau Of Investigation attempted to use this Circumstantial Evidence in their case against Mitnick, but no proof of a connection was ever uncovered. The 1980s boom for a time sustained the bank, but its aggressive acquisition strategy, unfavorable Financial Engineering arrangements, and the 1990 Recession and Southern California Real Estate crash devastated its loan portfolio and balance sheet. Banking regulators, concerned problems at Security Pacific could compound the emerging Savings And Loan Crisis , placed the bank under heightened scrutiny. In 1992 Security Pacific Bank merged with San Francisco -based BankAmerica (now called Bank of America), a deal that was at the time one of the largest bank mergers in history, and its identity was dissolved. In 2000 Robert H. Smith, Security Pacific's last chairman and CEO , published the book ''Dead Bank Walking'' which chronicled the merger. |
|
|