Circular
June 25 Public Meeting on Proposed Acquisition of Citicorp by Travelers Group Inc.
June 8, 1998
Circular No. 11058

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The Federal Reserve Board has announced a public meeting for 9:00 a.m. EDT, Thursday, June 25, 1998, at the Federal Reserve Bank of New York, 33 Liberty Street, New York, N.Y., on the proposal by Travelers Group Inc. to acquire Citicorp, both located in New York City.

The purpose of the meeting is to collect information relating to factors the Board is required to consider under the Bank Holding Company Act. These factors are: the effects of the proposal on the financial and managerial resources and future prospects of the companies and banks involved in the proposal, competition in the relevant markets, and the convenience and needs of the communities to be served. Among the convenience and needs considerations is consideration of the records of performance of Travelers Group and Citicorp under the Community Reinvestment Act -- which includes the institutions' record of meeting the credit needs of their entire communities (including low- and moderate-income neighborhoods) consistent with the safe and sound operation of the institutions.

The transaction also involves the proposed acquisition or retention of a number of nonbanking companies engaged in activities permissible for bank holding companies as well as a proposal to divest or otherwise conform to the statute a number of other activities that are not permissible for bank holding companies under current law. With respect to the proposal to conduct permissible nonbanking activities, the Board also must determine whether conducting the proposed nonbanking activities can reasonably be expected to produce benefits to the public that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking practices.

Persons wishing to testify at the meeting must submit a written request no later than 5:00 p.m. EDT, June 12, 1998, to Elizabeth Rodriguez Jackson, Community Affairs Officer, Federal Reserve Bank of New York, 33 Liberty Street, New York, NY 10045 (facsimile: 212/720-7841). The request must include: (i) a brief statement of the nature of the expected testimony and the estimated time required for the presentation; (ii) address and telephone number (and facsimile number, if available) of the person testifying; and (iii) identification of any special needs, such as persons desiring translation services, persons with a physical disability who may need assistance, or persons requiring visual aids for their presentation. To the extent available, translators will be provided to persons wishing to present their views in a language other than English if this information is included in the request to testify. Persons interested only in attending the meeting do not need to submit a written request to attend.

On the basis of the requests to testify, the presiding officer of the public meeting will establish a schedule of appearances and prescribe all necessary procedures to ensure that the meeting proceeds in a fair and orderly manner. An agenda for the meeting, which will include the scheduled time for each person's testimony, will be provided to participants at a later date.

The Federal Reserve Board also announced that it will extend the period for written comments on the proposal through June 25, 1998. The comments should be sent to the Board, or, at this Bank, to our Office of Regional and Community Affairs.