The Federal Reserve Board will hold a public hearing on the proposed Citicorp-Travelers Group merger June 25 in New York.
The Fed, which must approve the transaction, said Thursday that the meeting will focus on the deal's impact on the operations of the companies, market competition, and Community Reinvestment Act commitments. Discussion is also expected on whether the combined company should be permitted to continue underwriting insurance for at least two years before mandatory divestiture.
Meanwhile, the Greenlining Institute urged the Fed on Thursday to block the Citicorp-Travelers deal unless the companies increase their $115 billion CRA commitment.
The pledge "is far less than comparable institutions have pledged and reflects on the inadequate past CRA record of Citicorp and the redlining record of Travelers," executive director John C. Gamboa and other officials of the San Francisco-based activist group wrote in a June 4 protest letter.
The group complained that the companies' huge executive compensation packages and "highly risky" international loans could jeopardize lending commitments to low-income areas. Objections were also raised about the ethnic diversity of the companies' work forces and track record of serving minorities.
A spokeswoman for Travelers declined to respond. A Citicorp spokesman could not be reached for comment.