President Clinton signs the Financial Services Modernization Act (Gramm-Leach-Bliley Act), officially repealing key provisions of the Glass-Steagall Act of 1933 that separated commercial and investment banking. The law retroactively legalizes the 1998 Citicorp-Travelers merger that created …
President Bill ClintonPhil GrammJim LeachThomas Bliley JrCitigroup+2 moregramm-leach-blileyglass-steagall-repealfinancial-deregulationcitigroupregulatory-capture+1 more
In September 1998, the Federal Reserve Board granted Citicorp a temporary waiver allowing its merger with Travelers Group, effectively circumventing the Glass-Steagall Act and Bank Holding Company Act. This strategic regulatory maneuver created Citigroup, the first ‘universal bank’ since …
Federal ReserveAlan GreenspanCiticorpTravelers GroupSandy Weill+4 morefederal-reservecitigroupglass-steagall-violationregulatory-waiversystemic-corruption+3 more
Citicorp and Travelers Group announce a $70 billion merger creating Citigroup, directly violating Glass-Steagall Act provisions separating commercial banking from insurance and securities activities. The Federal Reserve provides conditional approval based on the expectation that Congress will repeal …