Regionals Aren't a Threat, Reed Tells Analysts
NEW YORK - John S. Reed, chairman of Citicorp, told analysts on Wednesday that the rise of strong superregional banks "does not bother me at all."
He said institutions such as Banc One Corp. and NCNB Corp. may eventually become even larger than Citicorp. More important than size, he said, is "being No. 1 or No. 2 in each of our main businesses" - consumer banking, international, and corporate lending.
He said the planned combination of Chemical Banking Corp. and Manufacturers Hanover Corp. is "good for the local economy and will make competition tougher in the New York area, but nowhere else."
He added that Citicorp is about 40% toward meeting profitability and expense-cutting goals. He said he had just presented a capital-raising plan to the Citicorp board.