When Two Titans Merge

When Two Titans Merge: Management, Organization, and Technology Challenges at Citigroup The financial realism was shaken on April 5, 1998, when Citibank Corp. (Citicorp) and the Travelers Group announced they would merge. The size of the legal jointure 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 diachronic; it directly challenges unify States laws that have governed the American financial industries since the grey age of the Great Depression by keeping the banking and indemnification businesses separated. The brisk company, named Citigroup, Inc., is being characterized as a financial supermarket. The old-timer administrators 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 package with merging. The twain companies bring very different financial businesses to Citigroup. It then is strong in traditional banking, consumer finance (including home mortgages), accept cards, savings and IRA plans, investment banking, securities brokerage, asset management, and property, casualty and bearing story insurance.

A financial company embracing such a broad business spectrum is common in another(prenominal) 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 wide domestic and international distribution channels. The new comp any is massive. In 1997 Citicorp and Travele! rs had combine assets of $700 billion, net revenues of nearly $50 billion, a unite equity of more than $44 billion, and an operating income of approximately $7.5 billion. Citigroup is starting with about 150,000 employees and over 100 million customers. It is the largest financial serve well company in the world. The Merging Companies:...If you want to get a full essay, order it on our website: OrderEssay.net

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