Home > Banking Information & Regulation > Public Meeting Transcripts > PMT - Agendas June 25-26, 1998
Public Meeting Transcripts
Public Meeting Regarding Citicorp and Travelers Group
Friday, June 26, 1998
Transcript of Welcoming Remarks
434 1 2 (8:00 a.m.) 3 MR. LONEY: If we could begin, 4 please. I want to welcome you all to this 5 public meeting. This is a continuation of the 6 public meeting that we are holding on the 7 application by Travelers Group to acquire 8 Citicorp. 9 Yesterday we held a meeting here. We 10 had approximately 90 witnesses, and I think it 11 was a very useful exercise for everyone 12 involved. I am confident that today's meeting 13 will be useful as well. 14 Let me first introduce myself. I am 15 Glenn Loney, Deputy Director of the Division of 16 Consumer and Community Affairs of the Federal 17 Reserve Board in Washington D.C. I am the 18 presiding officer for this meeting. 19 Our other panelists today, to my 20 immediate left Scott Alvarez, Associate General 21 Counsel from the Board's legal division, and to 22 his left is Jim Hodgetts, Senior Vice President 23 from the Federal Reserve Bank of New York, and 24 to his left is Barbara Kent, who is Acting 25 Deputy Superintendent of the Consumer Services . 435 1 2 Division of the State of New York Banking 3 Department, and we are particularly happy to 4 have the State of New York Banking Department 5 represented here today. 6 We are here today because Travelers 7 Group of New York has applied for the Federal 8 Reserve's approval to acquire Citicorp, also in 9 New York. 10 When the Federal Reserve system 11 considers one of these applications, we look at 12 a number of factors under the Bank Holding 13 Company Act. These include financial issues, 14 managerial issues, competitive issues and the 15 convenience and needs of the communities 16 affected. In doing so, we are particularly 17 looking at the record of performance of the 18 parties under the Community Reinvestment Act. 19 The Community Reinvestment Act 20 requires the Board to take an institution's 21 record of meeting the credit needs of its 22 entire community into account. 23 In addition, the transaction also 24 involves the proposed acquisition or retention 25 of nonbanking companies engaged in activities . 436 1 2 permissible for bank holding companies, as well 3 as a proposal to divest or otherwise conform a 4 number of other activities that are not 5 permissible for bank holding companies under 6 current law. 7 With respect to the proposal to 8 conduct permissible nonbanking activities, the 9 Board also must determine whether conducting 10 the proposed nonbanking activities can 11 reasonably be expected to produce benefits to 12 the public that outweigh possible adverse 13 effects, such as undue concentration of 14 resources, decreased or unfair competition, 15 conflicts of interest, or unsound banking 16 practices. 17 The purpose of today's meeting is to 18 receive information regarding these factors, 19 and we are very pleased that you have all been 20 willing to come and testify in our public 21 meeting. 22 Over the two days we will have had 23 over 120 witnesses, representing varying groups 24 or speaking on their own behalf at these 25 meetings. Let me make a few remarks about the . 437 1 2 procedures. 3 This is what is called an informal, 4 public meeting. Members of the panel, those of 5 us up here, may ask the people who are 6 testifying questions about their testimony in 7 this kind of a forum. This is not a formal 8 administrative hearing, so we are not bound by 9 rules regarding evidence, cross-examinations, 10 and some of those formal trappings of that kind 11 of a proceeding. 12 We will be here for a full morning 13 and, as you see from the agenda, we need to 14 stick to that schedule very rigorously in order 15 to give everyone a chance to say what they 16 would like to say. We are going to ask the 17 people today to help us stay on schedule. The 18 panels will be expected to keep within their 19 allotted time, so please be mindful of the 20 needs of others. 21 We have a very dramatic, and as it 22 turned out at yesterday's meeting, an effective 23 timekeeping system that you will see from the 24 first row will help people keep on target in 25 terms of their timing. The timekeepers, the . 438 1 2 lady sitting in the middle of the front row, 3 will give you a signal when you have two 4 minutes left to speak and another signal when 5 your time is up. 6 Thank you all for coming. There may 7 have been some individuals who haven't had a 8 chance to sign up in advance, and to the extent 9 possible we want to give them a chance to speak 10 as well. 11 At the end of the meeting, we will 12 throw the mike open to anyone who would want to 13 make a presentation at the end of the time, 14 time permitting. 15 Witnesses may submit a written 16 supplement to the oral testimony by July 2 and 17 then the record for this matter will be closed. 18 Any written supplements must be 19 received by close of business at 5 p.m. on July 20 2 and directed to Jennifer J. Johnson, 21 Secretary of the Board, Board of Governors of 22 the Federal Reserve System, Washington D.C. 23 20551. You may fax your submission to area 24 code 502-457-3462. 25 Also, if you haven't turned in copies . 439 1 2 of your written testimony or if you have any 3 other written statements to put in the record, 4 please leave them with the Federal Reserve Bank 5 staff at the registration table outside. It is 6 important that we get this material for the 7 record. 8 The transcript of the meeting will be 9 available by June 30 for the June 25 meeting 10 yesterday, and by July 1 for the June 26 11 meeting today to the Federal Reserve Bank of 12 New York. 13 In addition, the official transcript 14 will be available by close of business on June 15 29 for the June 25 meeting, and by the close of 16 business on June 30 for the June 26 meeting on 17 the Board's website on www.bog.frb.fed.us. 18 With that, I would like to begin this 19 morning's proceedings. The first panel, Number 20 Seventeen in the agenda is made up of Marie 21 Nahikian, George McDonald, Freddy Espaillat and 22 Julie Colon. If those folks would come 23 forward.
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