Say what you like about Texas deal maker Gerald J. Ford, but don't doubt his moxie. This year's $1.1 billion purchase of First Nationwide Bank from Ford Motor Co. means he's responsible for the biggest thrift takeover in history. It may also be the gutsiest.
When he and his partner Ronald O. Perelman created First Gibraltar Bank in 1988 from thrifts purchased from the federal government, the deal made headlines for its size and spectacular success. (Most of First Gibraltar was sold to BankAmerica Corp. last year, reaping profits estimated at more than $1 billion.)
But First Gibraltar came with substantial subsidies and tax breaks, courtesy of the Feds. With First Nationwide, Mr. Ford and his team are completely on their own. And the thrift has lost tens of millions of dollars in recent years, partially because of its weak, widely dispersed branch network.
The genial, white haired Mr. Ford, 50, is not to be underestimated. Ford Motor has, after all, agreed to keep almost all of First Nationwide's bad assets. But it remains to be seen whether even the surehanded Mr. Ford can turn one of the industry's biggest flops into a winner.
