CALIFORNIA LEADS THE WAY
Don't tell the president of Glendale Federal Savings and Loan that hard times have hit some sectors of the US home finance industry. From Norman Coulson's point of view, business could not be better.
Over the last five years, the parent of his California-based thrift has become a publicly-traded company, raised money in Europe, launched operations in other parts of the US and retrained its staff. This new thrust -- helped by declining US interest rates -- has paid off in record earnings, stock price highs and a $14.8 billion balance sheet that is stronger than ever.
Glendale is only one of numerous California thrifts that are successfully meeting the challenges of deregulation in America's financial services industry. Their acievements have not gone unnoticed on Wall Street, where savings and loan stocks have been much in favour.
Industry analysts believe the performance of California's thrifts this year will likely surpass the record results of 1985, when earnings reached $1.06 billion, topping the previous record of $974 million in 1978.
California is home to several of the largest thrifts in the US. The state's savings institutions represent a major part of the total US housing finance industry and they have set an example for others in many respects.