In 1999, the big financial story in Utah was the announcement that Zion's and First Security Banks were going to merge. It was still a big story this past year because the merger failed!

The Zion's-First Security story was voted as the 4th biggest story of 2000 by the KSL News staff.

When it all began in mid-1999, the proposed merger between Zion's and First Security Bank would have created Utah's largest finanicial institution. Everyone appeared delighted that such a huge corporation would remain locally controlled.

So it was all set. The deal would be finalized when shareholders voted on it in the Spring of 2000.

But then First Security's share price began to drop. All the numbers and dollar signs that had been discussed in the previous months had suddenly changed.

Shareholders came from around the country, and packed themselves into a local hotel for the vote. When the ballots were counted, the vote was 45 percent to 33 percent against the merger.

Al Potts/Zions Shareholder: "I'M VERY HAPPY. I JUST FELT IT WASN'T FAIR TO THE INVESTORS, THE DIFFERENTIAL BETWEEN THE TWO SHARES."

Linda Stone/Zions Shareholder: "I WAS HOPING FOR IT TO WORK. I'M NOT SAYING THAT IT WON'T, I'M JUST DISAPPOINTED THAT IT DIDN'T. I'M HOPING TO MAKE SOMETHING POSITIVE OUT OF IT."

And so it was over-- no deal.

Ten days later, however, Wells Fargo Bank got into the game, and announced that it would acquire First Security for $3-billion!

When the deal was done, Wells Fargo had expanded its holdings to 22 states.

Spencer Eccles/C.E.O., First Security Bank:"THE WAY THEY DO BUSINESS IS VERY MUCH LIKE OURS. WE BOTH BELIEVE IN LOCAL DE-CENTRALIZED ORGANIZATION THAT EMPOWERS PEOPLE TO MAKE DECISIONS AFFECTING CUSTOMERS THAT THEY KNOW PERSONALLY."

Dick Kovacevich/Pres. & C.E.O., Wells Fargo Bank:"LOCAL PEOPLE WHO KNOW THEIR CUSTOMER WHO THEN HAVE ACCESS TO LARGE RESOURCES OF SERVICES AND OTHER EXPERTS THAT ALLOWS YOU TO HAVE A COMPETITIVE ADVANTAGE."

First Security customers were pleased to be affiliated with Wells Fargo.

"I THINK IT'S GOOD."

"I THINK IT'S GOOD."

FIRST SECURITY CUSTOMER: "I'LL SAY, GOOD LUCK. I HOPE THIS IS A MARRIAGE THAT WILL LAST."

And what about all the talk about maintaining local control? One local economist said at the time, being affiliated with the well-known Wells Fargo isn't a bad thing!

JEFF THREDGOLD/THREDGOLD ECONOMIC ASSOCIATES: "THEY'RE VERY WELL MANAGED. THEY TEND TO LEAVE A LOT OF LOCAL DECISION-MAKING IN PLACE, WHICH IS VERY IMPORTANT. ONE OF THE OTHER NAMES THAT WAS A POTENTIAL ACQUIRER IS NOTORIOUS FOR JUST COMING IN AND WIPING OUT LOCAL MANAGEMENT."