Editing Citigroup (section)

===Merger of Citicorp and Travelers (1998–2001)===
On April 6, 1998, Citicorp and Travelers announced a merger.<ref name=Merge/> The deal would enable Travelers and Citicorp to access each other's customer base for the marketing of financial products.

In the transaction, Travelers Group acquired all Citicorp shares; existing shareholders of each company owned about half of the new firm.<ref name=Merge/> While the new company maintained Citicorp's "Citi" brand in its name, it adopted Travelers' distinctive "red umbrella" as the new corporate logo, which was used until 2007.<ref>{{cite news | url=https://money.cnn.com/2007/02/13/news/companies/citigroup/ | title=Travelers buys back its red umbrella | first=Keisha | last=Lamothe | work=[[CNN]] | date=February 13, 2007}}</ref>

The chairmen of both parent companies, [[John S. Reed]] and [[Sandy Weill]] respectively, were announced as co-chairmen and co-CEOs of the new company, Citigroup, Inc., although the vast difference in management styles between the two immediately presented question marks over the wisdom of such a setup.

The remaining provisions of the [[Glass–Steagall Act]]—enacted following the Great Depression—forbade banks to merge with insurance underwriters, and meant Citigroup had between two and five years to divest any prohibited assets. Weill stated at the time of the merger that they believed "that over that time the legislation will change&nbsp;... we have had enough discussions to believe this will not be a problem".<ref name=Merge/> Indeed, the passing of the [[Gramm-Leach-Bliley Act]] in November 1999 vindicated Reed and Weill's views, opening the door to financial services conglomerates offering a mix of commercial banking, investment banking, insurance underwriting, and brokerage.<ref>{{cite web | url=http://www.investopedia.com/articles/03/071603.asp | title=What Was The Glass–Steagall Act? | first=Reem | last=Heakal | publisher=[[Investopedia]] | date=July 16, 2003}}</ref>

[[Joe J. Plumeri]] worked on the post-merger integration of the two companies and was appointed CEO of Citibank North America by Weill and Reed. He oversaw its network of 450 [[branch (banking)|branches]].<ref name=plumeriwsj>{{cite news | url=https://www.wsj.com/articles/SB944183809998441272 | title=Joseph Plumeri to Leave Citigroup For Top Job at Nonfinancial Firm | work=[[The Wall Street Journal]] | date=December 3, 1999 | url-access=subscription}}</ref> J. Paul Newsome, an analyst with [[CIBC Oppenheimer]], said: "He's not the spit-and-polish executive many people expected. He's rough on the edges. But Citibank knows the bank as an institution is in trouble—it can't get away anymore with passive selling—and Plumeri has all the passion to throw a glass of cold water on the bank."<ref>{{cite news | last=Nash | first=Jeff | url=http://www.investmentnews.com/article/19990419/SUB/904190722 | title=The Chief Preacher: Joe Plumeri – Citibank Finds Sales Religion | work=Investment News | date=April 19, 1999}}</ref> Plumeri boosted the unit's earnings from $108&nbsp;million to $415&nbsp;million in one year, an increase of nearly 300%.<ref>{{cite news | url=https://www.bizjournals.com/philadelphia/stories/2003/11/17/daily17.html | title=Commerce adds Plumeri to Board of Directors | work=[[American City Business Journals]] | date=November 19, 2003 | url-access=subscription}}</ref><ref>{{cite press release | url=http://www.willis.com/Documents/Media_Room/Press_Releases/2004/4-1-04%20Risk%20Transfer.pdf | title=Breaking with Tradition: Willis Re-energized | work=Risk Transfer Magazine | date=April 1, 2004}}</ref> He unexpectedly retired from Citibank in January 2000.<ref name=plumeriwsj/>

{{anchor|Associates First Capital Corporation|Associates Corporation of North America|Associates National Bank|The Associates}}
In 2000, Citigroup acquired Associates First Capital Corporation for $31.1&nbsp;billion in stock,<ref>{{cite news | url=https://www.nytimes.com/2000/09/07/business/citigroup-to-buy-associates-first-for-31-billion.html | title=Citigroup to Buy Associates First for $31 Billion | first=Patrick | last=Mcgeehan | work=[[The New York Times]] | date=September 7, 2000 | url-access=limited}}</ref> which, until 1989, had been owned by [[Gulf+Western]] (now part of [[National Amusements]]),<ref>{{cite web | url=http://edgar.secdatabase.com/1533/95017200001546/filing-main.htm | title=Citigroup, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=September 6, 2000}}</ref> and later by [[Ford Motor Credit Company]].<ref name="ct-1989aug13">{{cite news | url=https://www.chicagotribune.com/news/ct-xpm-1989-08-13-8901040282-story.html | title=Associates Widens Ford's Road | first=Joe | last=Simnacher | work=[[Chicago Tribune]] | date=August 13, 1989 | url-access=limited}}</ref> The Associates was widely criticized for predatory lending practices and Citi eventually settled with the Federal Trade Commission by agreeing to pay $240&nbsp;million to customers who had been victims of a variety of predatory practices, including "flipping" mortgages, "packing" mortgages with optional credit insurance, and deceptive marketing practices.<ref name="Citigroup-Oct-2002-8-K">{{cite web |url=http://edgar.secdatabase.com/1820/91205702038795/filing-main.htm |title=Citigroup, Form 8-K, Current Report, Filing Date Oct 16, 2002 |publisher=secdatabase.com |access-date =March 26, 2013}}</ref><ref>{{cite press release | url=https://www.ftc.gov/news-events/press-releases/2002/09/citigroup-settles-ftc-charges-against-associates-record-setting | title=Citigroup Settles FTC Charges Against the Associates Record-Setting $215&nbsp;million for Subprime Lending Victims | publisher=[[Federal Trade Commission]] | date=September 19, 2002}}</ref>

In 2001, Citigroup made additional acquisitions: [[European American Bank]], in July, for $1.9&nbsp;billion,<ref>{{cite news | url=https://www.nytimes.com/2001/02/13/business/eab-purchase-lets-citibank-expand-long-island-presence.html | title=E.A.B. Purchase Lets Citibank Expand Long Island Presence | first=Kenneth N. | last=Gilpin | work=[[The New York Times]] | date=February 13, 2001 | url-access=limited}}</ref><ref>{{cite news | url=https://money.cnn.com/2001/02/12/deals/citibank/index.htm | title=Citibank to buy EAB | work=[[CNN]] | date=February 12, 2001}}</ref><ref>{{cite news | url=https://www.latimes.com/archives/la-xpm-2001-feb-13-fi-24719-story.html | title=Citigroup to Buy European American Bank in Bid to Increase N.Y. Market Share | work=[[Los Angeles Times]] | date=February 13, 2001 | url-access=limited}}</ref><ref>{{cite web | url=http://edgar.secdatabase.com/1031/91205701528176/filing-main.htm | title=Citigroup, Form 10-Q, Quarterly Report | publisher=[[U.S. Securities and Exchange Commission]] | date=August 13, 2001}}</ref> and [[Banamex]] in August, for $12.5&nbsp;billion.<ref>{{cite web | url=http://edgar.secdatabase.com/1685/95010301500965/filing-main.htm | title=Citigroup, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=May 17, 2001}}</ref><ref>{{cite news | url=https://www.nytimes.com/2001/05/18/business/citigroup-to-buy-mexican-bank-in-a-deal-valued-at-12.5-billion.html | title=Citigroup to Buy Mexican Bank In a Deal Valued at $12.5 Billion | first1=Riva D. | last1=Atlas | first2=Tim | last2=Weiner | work=[[The New York Times]] | date=May 18, 2001 | url-access=limited}}</ref><ref>{{cite news | url=https://www.washingtonpost.com/archive/business/2001/05/18/citigroup-to-buy-mexicos-banamex/7f5a6951-7dae-42fd-91dd-ad14a0767b95/ | title=Citigroup to Buy Mexico's Banamex | first=Kathleen | last=Day | newspaper=[[The Washington Post]] | date=May 18, 2001}}</ref>