Citicorp earlier this year agreed to provide regulators with a plan for accelerating efforts to rebuild its capital base, according to the company's prospectus for a preferred stock offering.
Citicorp announced at the end of 1990 that it planned to raise $4 billion to $5 billion in capital by the end of 1993, and it has made good progress toward that goal.
But under a memorandum of understanding signed in February, the company agreed to provide regulators "with steps that could be taken to achieve higher capital ratios than those set forth in Citicorp's internal plans," the prospectus said.
The filing did not specify if Citicorp had since outlined such steps, but it noted that the company hopes its planned stock offering will accelerate its achievement of capital goals.
A spokesman for Citicorp declined to say whether the company has filed an alternative capital plan, but characterized such a request as a normal regulatory requirement.
Thomas Hanley, an analyst at First Boston Corp., said: "Because [the regulators] want this contingency plan, management is going to have to further prioritize their business plans and perhaps accelerate their cost cutting and reserve building."
The memorandum also says that Citicorp cannot make a bid for any significant acquisitions or otherwise expand its assets without permission from the Office of the Comptroller of the Currency or the Federal Reserve Board.
Citicorp states in its filing that it is not planning any significant acquisitions.
