THE BATTLE FOR FIRST INTERSTATE : Wells, First Interstate Shares Again Soar

Anda Banks came to a quick conclusion when the news broke in October that Wells Fargo & Co. wanted to buy her company, Los Angeles-based First Interstate Bancorp.

Despite more than five happy years with First Interstate as an executive assistant and in loan support roles, Banks decided it was time to find work in a new field.

“I didn’t see a future for myself in banking,” said Banks, mindful of the heavy job losses in the industry in California during the 1990s due to mergers and reorganizations. “First Interstate is a No. 1 company as far as I’m concerned, but I had to protect myself.”

First Interstate veterans--and perhaps Wells Fargo employees as well--have plenty of reason to be wary about the future, employment experts say. If Wells Fargo, as expected, wraps up its deal for First Interstate, one of the main ways the company is expected to benefit is by consolidating overlapping operations and slashing thousands of jobs.

And if the local banking industry’s recent past foretells its future, significant numbers of workers will wind up in lower-paying jobs, new lines of work or, in some cases, long spells of unemployment. Even many survivors of the initial cutbacks will find themselves snared in follow-up layoffs or, at the least, will see their upward mobility drastically slowed.

Job statistics reflect the severe contraction of the industry locally. In Los Angeles County, for example, employment in banks, savings and loans and credit unions dropped nearly 24% from a peak of 97,300 jobs in 1990 to an estimated 74,200 last year. Overall employment in the county dropped less than 10%.

For laid-off bank employees willing to relocate, the picture appears brighter, particularly if they pursue jobs in new industries. A newly released national survey of 355 laid-off bankers who found new jobs last year showed that 61% landed in a different business. “The skills they have are well-regarded” in other fields, said Glen M. Smyth, president of the Los Angeles outplacement firm Smyth, Fuchs & Co.

The 44-year-old Banks, for instance, quickly secured a new job and a 12% pay raise as an executive assistant with a gold-mining company in Denver.

Still, for older laid-off bankers hunting for jobs in California, the prospects often are grim. “Once you’re past a certain age in this economy, it’s real difficult to find something else,” said a laid-off banking professional who asked not to be identified. The banks “would never say that officially, but it’s blatantly true.”

Jack Kyser, chief economist with the Economic Development Corp. of Los Angeles County, agreed.

At banks and firms receiving job applications from older workers, Kyser said, “the thinking is, ‘Well, they were making $60,000 before, and all I can offer is $30,000, so they wouldn’t be happy.’ ”

Meanwhile, anxiety is running high among employees at First Interstate, which is expected to absorb the brunt of the job cuts if the Wells deal goes through. All the same, many employees aren’t ready to send out resumes.

“We would love to keep our jobs,” explained a First Interstate loan officer who asked not to be identified.

On the other hand, some bankers have been delighted to accept severance packages and embark on new careers. Elaine Viveros, a onetime branch manager for Bank of America, decided she had had enough after 19 years with the company.

She said she grew tired of the repeated layoffs and mounting pressures at BofA since it acquired Security Pacific in 1992, so she volunteered for a buyout and received it early last year. Now she’s closing deals of a different kind: She’s in training at a Newhall mortuary to become a funeral director.

Viveros says she likes the work because she enjoys helping families who are in need of special attention after losing a loved one. “I help them take the baby steps toward beginning the grieving process,” she said.

To be sure, the pay is a big comedown. As a banker, Viveros earned about $50,000 a year. As a funeral home trainee, she is receiving $7 an hour.

Now that her children are grown, Viveros said, “I’d rather do something that I enjoy doing and make less money. . . . I’m at a point in my life that I can do that and get away with it.”

Times staff writer Paul H. Johnson contributed to this report.