B of A Asks to Expand Thrifts

BankAmerica Corp., the second largest bank in the nation, Friday asked the Office of Thrift Supervision for permission to open branches of its savings bank unit in 12 states.

A spokesman said the move would better enable the bank to offer products such as home equity loans and professional financing. He noted that the company already offers these through agency offices in 20 states.

“What we want to do is establish the legal entity” to offer these products, he said.

Right now, commercial banks such as BankAmerica are blocked from offering such products under federal law known as the McFadden Act. However, savings and loans are allowed to offer them.

“If it’s approved and it works, it will be a good way to get around the McFadden Act,” said Ray Soifer, an analyst with Brown Bros. Harriman.

But the plan to open more branches is not designed to avoid government regulations, one analyst said.

“I think this is more a way to expand rather than an attempt to get around interstate branching, which I think we’re going to get anyway,” said Campbell Chaney, an analyst with Sutro & Co.

The spokesman said the new branches for Bank of America FSB would be in Alaska, Idaho, Illinois and New York City. Other branches would be in Arizona, California, Colorado, Florida, Nevada, New Mexico, Texas and Washington.

The offices would be in cities where Security Pacific Corp., which BankAmerica acquired in April, 1922, had finance-company offices.

BankAmerica is one of many large commercial banks that have been pushing for legislation to allow banks to open branches in other states. They are now prohibited from crossing state borders to open branches unless the states have a reciprocal agreement.

Shares of BankAmerica closed down 50 cents to $51.25 on the New York Stock Exchange.