to send a message about its commitment to that sizable market, which has lost most of its big-bank headquarters.
Leslie S. Biller, a vice chairman of the $205 billion-asset Wells, said in an interview that he, his wife, and their two dogs have moved to the west side of the city.
Citing the fact that two major Los Angeles-based banking companies Security Pacific Corp. and First Interstate Bancorp -- got acquired, "We thought it would make an important statement to the community and our team members if one of us lived down there," Mr. Biller said.
He noted that Wells Fargo's own integration of First Interstate "didn't go that well." Therefore, "I see an enormous opportunity."
Mr. Biller said he plans to get involved with community boards and other local groups in hopes of attracting new business.
"To the degree I can be helpful to business in customer calling and working on relationships, I'll be right there," he said.
Though Los Angeles is considered one of the most lucrative banking markets in the nation, Wells Fargo effectively put an end to the city's glory days as a major banking center in 1996, when the company succeeded in its hostile takeover of First Interstate. Then-mayor of Los Angeles Richard J. Riordan argued against the proposed merger, insisting that job cuts and branch closures would leave the city "irreparably harmed."
After Wells Fargo merged with Norwest Corp. of Minneapolis last fall, it was expected that most former Norwest executives -- including Mr. Biller and Wells chief executive officer Richard Kovacevich -- would relocate from the Twin Cities to San Francisco, where Wells is based.
But Mr. Biller said his presence in Los Angeles is now necessary to help the company increase its market share in what he described as its "largest market."
In fact, based on gross regional product, the Los Angeles metropolitan area ranks as the 11th-largest economy in the world, ahead of Mexico, India, and the Netherlands, according to Wells Fargo.
In terms of market share, Wells Fargo ranks third in the Los Angeles area, with roughly $13.6 billion of deposits; Bank of America is first with about $37 billion, followed by Seattle-based Washington Mutual Inc., which has $31.7 billion.
Los Angeles, which in 1992 also lost its hometown bank Security Pacific to a merger with Bank of America Corp., "has been tremendously scarred by bank mergers," said Alan Fisher, executive director of the California Reinvestment Committee.
Other big banking companies are keenly aware of Los Angeles' importance. Following NationsBank Corp.'s merger with the former BankAmerica Corp., Bank of America chairman and chief executive officer Hugh L. McColl visited the city and pledged $2.5 million to promote literacy in the area.
Wells Fargo employees in Southern California were also pleased with Mr. Biller's decision. A branch manager in the greater Los Angeles area said Mr. Biller's presence would bring a new perspective to Wells Fargo's leadership.
"There has always been a north-versus-south mentality to some degree at the bank," said the manager, who asked to remain anonymous. "Having Biller down here will give the people in San Francisco a better perception of what is happening." ?
