Employees Shocked, Bitter Over Bank Sale

Shock, anger, uncertainty and a sense of betrayal were the predominant emotions among many Crocker Bank employees Friday after they learned that their bank will be sold to Wells Fargo.

Employees said they were surprised by the announcement and expressed uneasiness about what changes and cutbacks might occur as a result of the consolidation.

Most customers, in contrast, said they would welcome the change in ownership, especially if it means improved service at Crocker branches. Others said it would not make much difference to them since Wells Fargo was a well-established bank and their money was safe.

Much of the shock stemmed from the fact that employees had no hint that Crocker’s owner, Midland Bank of Britain, was interested in selling Crocker. There had been some idle speculation about a sale among employees when Crocker turned a $38-million profit in 1985 after two years of heavy losses, but there were no rumors of an actual sale.

The deal with Wells Fargo was announced to the media even before Crocker informed its workers.

Some employees at Crocker Plaza, the bank’s Los Angeles headquarters, learned of the sale early Friday before they had even reached their desks. One said she got the news from a parking lot attendant who had heard it on the radio. Others learned about it on the elevator.

A senior loan officer said she was reading the interoffice memo about the sale when she received a telephone call about it from an executive of another bank. “He knew before I did,” she said in disbelief.

There was bitterness on the executive floors of Crocker Bank’s headquarters tower in San Francisco after officers learned that the bank they had worked so hard to turn around had been sold out from under them.

“After going through all this crap for the last two years, we were finally taking a small step out of the tunnel,” said one high-level corporate lending officer, who said he had turned down two job offers from other banks in recent months.

In San Francisco, a Crocker clerical worker who operates a copying machine expressed concern. “I hope I can keep my job,” she said, adding that Crocker workers are already gossiping about Well Fargo Chief Executive Carl E. Reichardt’s reputation for ruthlessly cutting costs. “I’m just a little person,” she said.

A number of Crocker customers interviewed--many of whom said they were generally dissatisfied with Crocker’s service--said a change might be for the better.

“I think it’s great,” said Stan Somerville, 72, a retired Bel-Air resident. “I have a lot of respect for Wells Fargo and I’ve lost confidence in Crocker management.”

Contributing to this story were Times staff writers Victor Zonana in San Francisco, Alan Goldstein in the San Fernando Valley, Janet Zimmerman in Orange County and Bill Ritter in San Diego.