Regulatory-Waiver

Federal Reserve Grants Citigroup Temporary Waiver for Glass-Steagall Violation

| Importance: 8/10

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 …

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