All on Account of a Buyout

Californians got a shock when another of the state’s big financial firms was gobbled up by the Japanese last month.

But the buyout of Union Bank in Los Angeles by the Japanese-owned California First Bank may hold a special surprise for San Franciscans: California First is seriously thinking about moving its headquarters from San Francisco to Los Angeles.

Already, California First has strong ties to Southern California. A huge portion of its business is here, and its chairman lives in Los Angeles. Now, a source says, California First Chief Executive Seishichi Itoh is looking for a Southern California home. (He’d probably straddle the two cities until a headquarters decision is made.)

Among California First’s worries about moving: the reaction from San Francisco officials, who are already super-sensitive about the city’s diminished status as a site for corporate headquarters.

Southern California may yet score another victory in this bank deal. California First is also thinking about switching its name to Union Bank, figuring that it’s better known. What about California First Union Bank? “Too long,” says one top executive.