commer cial banks are permitted to engage in activities previously reserved for thrift institutions. The current thrift institu tion crisis is clouding the entire financial industry in the United States, much as did the failure crisis involving commer cial banks in the early to mid 1980s.
There is little question about the fact that the banking environment in the United States in 1990 is a dynamic one. The eventual structure of the American banking system certainly has not been ultimately defined as of May 1990. While many in the industry, and many who would like to enter the industry are seeking further deregulation, others (in the industry, in Congress, and in the Federal Reserve) are seeking some degree of reregulation. 3
Security Pacific Bank has as its goals to become (1) a comprehensive financial services company, and (2) a national bank (with respect to scope of operations, as opposed to regu latory supervision). The organization is well on its way to fulfilling the first of these goals. To become a fully compre hensive financial services company, however, require congres sional action to change some existing restrictive laws. With respect to the second objective, the organization has extended its commercial banking operations well beyond the borders of its California home base through holding company acquisitions. It has also been successful in attaching the Security Pacific name to acquired banks in other states, as a means of promoting national consumer recognition. Changes to the interstate bank ing law, however, would permit Security Pacific to make further and more rapid progess in this area.
The management team at Security Pacific has successfully guided the bank through waters which caught such giant competi tors as Bank of America, City Bank of New York, Continental Illinois, and others. While Security Pacific does have some exposure with respect to both Third World loans, and loans secured by o...