First Chicago Corp. Merges Two Divisions to Form Global Banking Enterprise
CHICAGO (AP) _ In a management reorganization, First Chicago Corp. has merged its commercial and investment banking operations into a single enterprise, Global Corporate Bank.
The reorganization plan was announced Monday, ending several days of banking community rumors that First Chicago, the nation’s 10th-largest bank- holding company, might be considering substantial staff layoffs or a management shakeup. Those rumors proved to be inaccurate.
First Chicago already provided the same services to customers, but company spokesman Anthony Zehnder said the divisions were merged ″to increase efficiency in meeting the changing needs of our corporate customers.″
″Where once traditional loan arrangements made up the bulk of services we provided our ‘Fortune 500’ customers, they now have more diverse needs,″ said Zehnder. ″Global Bank will be able to provide loans, but the range of services we offered - arranging leveraged buyouts, making interest-rate swaps - will now be handled by just one unit.
″The customer won’t see the change as much as the account manager. The corporations will deal with the same person, but his ability to draw on the bank’s resources will be greatly enhanced,″ he added.
Zehnder said creation of the new division will have no impact on First Chicago’s other primary businesses: personal, or retail banking, and middle- market business banking, designed to serve smaller businesses.
Barry F. Sullivan, chairman of First Chicago, and George L. Davis, a First Chicago executive vice president, were named to head Global Corporate Bank, Zehnder said.
Eight other First Chicago executives have been appointed to head specialty teams within Global, added Zehnder. Five of the eight were appointed to executive vice presidencies on Friday.