If regulators approve Great Western Financial Corp.'s application for two commercial bank charters, it will have the advantages of being a thrift and a commercial bank at the same time, industry observers said.

The Chatsworth, Calif.-based company, owner of the nation's second- largest thrift, will be able to act like a bank but without having to pay the higher taxes levied on commercial banks, said Thomas O'Donnell, an analyst at Smith Barney.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.