American S&L;’s Staff Cheers Old, New Team at Top
A preppy-looking tycoon from Ft. Worth named Robert Muse Bass came to the fairgrounds in this San Joaquin Valley town of 190,000 this weekend and received a welcome normally accorded royalty or rock stars.
Bass, a bashful sort who rarely ventures into the public spotlight, was all smiles as he was mobbed by adoring employes of American Savings who clamored to get his autograph and take his picture. “Thank you for helping us survive,” one employee after another told him.
The outpouring of affection came after the 40-year-old Bass finally sealed a deal on Dec. 28 to buy American Savings, which has been a financial mess since 1984 because of huge losses and repeated deposit runs. Employees had been haunted for years with the possibility that American Savings might be closed or carved up.
Bass, a billionaire and corporate acquisition specialist, raised $350 million in new capital for American Savings and pledged to raise an additional $150 million in the new three years. In return, party goers gave him a toaster, the traditional gift from a thrift when a depositor opens a new account, and a T-shirt saying: “American Independence Day: 12/28/88.”
To celebrate the new era, Bass threw parties at locations around the state in places like Stockton, Oakland, Anaheim and Woodland Hills. The parties were linked together with live satellite broadcasts.
“I have been waiting for this party for four years,” said Layna Browdy, American Savings’ chief public relations official during most of the turmoil. Browdy arranged the party, but declined to say what it cost.
The celebration was especially festive here, where the dignitaries gathered. American Savings is headquartered in Stockton, located about 60 miles east of Oakland, and employs nearly a third of its 5,300 workers here. American Savings is also Stockton’s largest private employer.
‘All Positive’
The party had the ambiance of a 1950s pep rally and sock hop, all designed to dovetail with American Savings’ new advertising theme that it now operates by old-fashioned standards of service and strength.
In case anyone did not get the nostalgia message, Frankie Avalon--actor, singer and 1950s teen-age heart throb--acted as party host and general cheerleader.
The party included repeated standing ovations for Bass, warm tributes to William J. Popejoy, who ran the company during the tough times, and a pep talk by the new boss, Mario J. Antoci.
“I hate negative thinking,” Antoci, who replaced Popejoy as chief executive late last month, said. “From this point on, it’s all positive.”
The only discordant note came from Roger Martin, the federal banking regulator who spearheaded a grueling, monthslong regulatory effort to find a buyer for American Savings.
Martin took the occasion to take a jab at William Crawford, the California savings and loan commissioner who refused to help with the federal effort to sell American Savings to Bass. “I hope you notice that we didn’t invite commissioner Crawford,” Martin said.
The party amounted to a last hurrah for Popejoy, who is going into business with Bass and will remain a director at American Savings. Wearing saddle shoes, blue jeans and a high school-style letter sweater, Popejoy was also surrounded by well-wishers who wanted his autograph and photograph.
Although many outsiders--financial analysts, competitors, regulators--did not hold Popejoy in especially high regard, inside the company he was a popular and good-humored figure who seldom let discouragement show.
When introduced to the crowd, the 50-year-old Popejoy got an ovation that equaled the one accorded Bass. “Thank you,” he cracked. “That was well deserved.”
