Before announcing their $70 billion merger, Citicorp and Travelers Group executives held more meetings with Federal Reserve Board officials than previously thought.
In addition to briefing Fed Chairman Alan Greenspan, representatives of the two companies met with the central bank's general counsel and members of its supervision division. Citicorp and Travelers executives also met with Federal Reserve Bank of New York officials.
The Fed provided these details in an April 10 letter to consumer activist Ralph Nader, who asked whether regulators told company executives if their merger would be approved. "No statement was made as to how the board would act on an application," Fed Secretary William W. Wiles assured Mr. Nader.
Mr. Wiles also noted that Citicorp and Travelers sent two letters to Fed General Counsel Virgil Mattingly "outlining several specific legal issues" that might be raised by the deal. The company "outlined possible approaches to these legal issues and staff identified relevant principles."
Citicorp and Travelers representatives met with Fed supervisors "to make a presentation on the general financial condition of Travelers and its subsidiaries, their risk management systems, and efforts to address the year-2000 problem," according to Mr. Wiles.
-Barbara A. Rehm