When Two Titans Merge

When Two Titans Merge: Management, Organization, and Technology Challenges at Citigroup The financial world was shaken on April 5, 1998, when Citibank Corp. (Citicorp) and the Travelers Group announced they would merge. The size of the union is stunning. It is the largest in history, with a market value of over $83 billion on the day it was announced. In addition, the union is historic; it directly challenges get together States laws that have governed the American financial industries since the quondam(a) age of the Great Depression by keeping the banking and insurance businesses separated. The brisk company, named Citigroup, Inc., is being characterized as a financial supermarket. The point executives of the twain companies are co chairmen and co chief executive officers of Citigroup. The merger was approved and went into effect in October 1998. The Citigroup merger reflects a slowly 1990s desire to increase market grant with merging. The twain companies bring v ery different financial businesses to Citigroup. It thusly is strong in traditional banking, consumer finance (including home mortgages), acquiescence cards, savings and IRA plans, investment banking, securities brokerage, asset management, and property, casualty and life sentence story insurance.

A financial company embracing much(prenominal) a broad business spectrum is common in separate separate of the world but had not existed in the United States due(p) to regulatory restrictions dating from the 1932 Glass Steagall Act. By combining the ii companies, Citigroup has a dramatically enlarged client base and encompassing domestic and international distribution channels. T! he new company is massive. In 1997 Citicorp and Travelers had combine assets of $700 billion, net revenues of nearly $50 billion, a feature equity of more than $44 billion, and an operating income of approximately $7.5 billion. Citigroup is head start with about 150,000 employees and over 100 million customers. It is the largest financial swear out company in the world. The Merging Companies:...If you want to get a full essay, order it on our website: BestEssayCheap.com

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