Activist Groups Seek Hearings on Citi-Travelers Deal

A coalition of community groups spearheaded by the city's elected consumer watchdog is demanding hearings on the proposed merger of Citicorp and Travelers Group.

At a press conference Tuesday outside Citicorp's headquarters, public advocate Mark Green said the Federal Reserve Board should sponsor the hearings "to satisfy the community that the benefits will exceed the costs" of the combination.

The coalition of nine groups is anticipating a "multi-billion-dollar" community lending commitment from Citicorp and Travelers as part of their application to the Fed to approve the merger. That application is expected to be filed in early May. A Citicorp spokesman declined to comment on the protest.

Mr. Green, who is seeking the Democratic nomination to run for the Senate this fall, said the Fed must consider whether the merger would "promote or inhibit" consumer choice.

He said he wants the Fed to consider whether the new company would adequately protect consumer privacy and promote fair-lending practices in low- and moderate-income areas.

Mr. Green also wants the Fed to consider the precedent. "Can Chase- Merrill be far behind?" he said.