|For immediate release|
The Federal Reserve Board today announced its conditional approval of applications by Travelers Group Inc., New York, New York, to become a bank holding company by acquiring Citicorp, New York, New York, and its bank and nonbank subsidiaries, including Citibank, N.A., New York, New York; and to retain certain nonbanking subsidiaries and investments of Travelers, including Salomon Smith Barney Inc., New York, New York, and Travelers Bank & Trust, fsb, Newark, Delaware.
The Board's approval is subject to the condition that Travelers and the combined organization, Citigroup Inc., take all actions necessary to conform the activities and investments of Travelers and all its subsidiaries to the requirements of the Bank Holding Company Act in a manner acceptable to the Board, including by divestiture as necessary, within two years of consummation of the proposal. The nonconforming activities conducted by Travelers would represent less than 15 percent of the combined company's total assets and less than 20 percent of its revenues. The Board's action also is subject to the condition that all investments and activities of Travelers and Citigroup after consummation of the proposal conform to the requirements of the BHC Act and the Board's regulations and orders thereunder.
The Board's approval also is subject to the condition that Travelers and Citigroup conform the activities of its companies to the requirements of the Glass-Steagall Act and the Board's related orders and interpretations thereunder, including the Board's revenue test.
Attached is the Board's Order (242 KB PDF) relating to this action.
1998 Orders on banking applications