Clausen Tells His Distress at B of A ‘Erosion of Pride’

BankAmerica Chairman A. W. Clausen told employees this week that he is disturbed by the “tremendous erosion of pride” at the company.

In a year-end letter to employees, released publicly Wednesday, Clausen also reiterated his opposition to a merger proposed by First Interstate Bancorp. He said that if the BankAmerica board of directors decides to reject the $3.1-billion offer, the company will probably be in a “fight” for its survival for which “we will be found ready, willing and able!”

The letter comes at the close of a bad year for the nation’s second-largest banking company. It was dated Monday, the same day that Fortune magazine disclosed that BankAmerica was ranked the second-least-admired corporation in America.

BankAmerica, the holding company for Bank of America, has reported losses of $600 million for the first nine months of 1986.

Clausen became head of the San Francisco-based company in October, returning to the job he held from 1970 to 1981. He told employees that he has been struck at how much has changed.

“The thing that disturbs me most is that there has been a tremendous erosion of pride among our employees,” he said in the letter. “But the thing that comforts me most is that the character of this institution is intact.”

He thanked employees for their hard work during a “painful” time, but said that more sacrifices must be made. “If we are given the time, we will return our bank to its position of pre-eminence. The re structuring program now under way will work. I am absolutely confident about our strategy.”