First Nationwide Bank on Monday announced a $1.2 billion agreement to acquire Cal Fed Bancorp - the second transaction at that price within a week that promises to alter the California financial landscape.

Analysts said First Nationwide's all-cash deal - it includes a complicated plan to share any proceeds forthcoming from Cal Fed's lawsuit against the U.S. government - rewards Cal Fed shareholders handsomely. They said it could spur other thrift mergers within the state and, later, purchases of these larger institutions by out-of-state commercial banks.

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