Citigroup

Colonel Samuel Osgood takes over the New York branch of First Bank of the United States and reorganizes it as City Bank of New York. The bank converts to a national charter, adopting the name National City Bank of New York (NCB). NCB becomes the first major U.S. bank to open a foreign department. Passage of the Glass-Steagall Act forces NCB to divest its securities affiliate and greatly reduce its financial services offerings. NCB acquires the First National Bank of New York and changes its name to First National City Bank of New York. The bank invents a new product: the negotiable certificate of deposit (CD). The name of the bank is shortened to First National City Bank. A one-bank holding company, First National City Corporation (FNCC), is created and becomes the parent of the bank. Restructuring and other charges result in an $885 million loss for the third quarter, and company shareholders do not receive a quarterly dividend for the first time since 1813. Citicorp merges with financial services giant Travelers Group Inc. to form Citigroup Inc. Passage of the Financial Services Modernization Act, which does away with the regulation of Glass-Steagall, blesses the marriage of Citicorp and Travelers after the fact, meaning the firm can engage in both banking and insurance. Associates First Capital Corporation, a consumer finance company specializing in subprime loans, is acquired and merged into CitiFinancial. Source: International Directory of Company Histories , Vol.59. St. James Press, 2004.