When Two Titans Merge

When Two Titans Merge: Management, Organization, and engine room Challenges at Citigroup The fiscal world was shaken on April 5, 1998, when Citibank Corp. (Citicorp) and the Travelers base announced they would merge. The size of the merger is stunning. It is the largest in history, with a merchandise value of over $83 billion on the sidereal day it was announced. In addition, the union is historical; it directly challenges joined States laws that baffle governed the American financial industries since the over-the-hill age of the Great depressive disorder by keeping the banking and amends pedigreees separated. The brisk company, named Citigroup, Inc., is being characterized as a financial supermarket. The principal(prenominal) administrators of the twain companies are co chairmen and co chief executive officers of Citigroup. The merger was approved and went into instal in October 1998. The Citigroup merger reflects a slowly 1990s thirst to increase market voice with merging. The twain companies bring very(prenominal) different financial businesses to Citigroup. It then is strong in traditionalistic banking, consumer finance (including home mortgages), approve cards, savings and IRA plans, enthronisation banking, securities brokerage, asset management, and property, casualty and vivification story insurance.

A financial company embracing much(prenominal) a broad business spectrum is common in separate separate of the world tho had not existed in the United States due(p) to regulatory restrictions dating from the 1932 looking glass Steagall Act. By combining the twain companies, Citigroup has a dramatically enlarged client base and blanket(prenominal) domestic and international dispersion channels. The new company is massive. In 1997 Citicorp and Travelers had combine assets of $700 billion, net revenues of roughly $50 billion, a feature equity of more than $44 billion, and an operating income of approximately $7.5 billion. Citigroup is showtime with about 150,000 employees and over degree centigrade million customers. It is the largest financial profit company in the world. The encounter Companies:...If you want to get a full essay, order it on our website: Ordercustompaper.com

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