FED Let's Citigroup Loose on Competitors
The Federal Reserve has given Citigroup Inc. a green light to acquire competitors after issuing an order in March 2005 preventing it from making acquisitions.
Apparently, the Fed rescinded its ban sooner than expected. "Such orders typically stay in effect for 18 months or more."
In part because of the Fed order, [CEO] Prince slowed the pace of acquisitions that had been Citigroup's hallmark under his predecessor, Sanford Weill. . . .
From 1986 to 1998, when Travelers Group Inc. bought Citicorp to create Citigroup, Weill made more than 100 purchases, transforming a Baltimore-based consumer lender into a bank, brokerage, securities firm and insurer with operations around the globe.
"Citigroup was built through putting companies together, and acquisitions were always an important part of growth" . . .
Much like cancer, financial institutions infiltrate and eventually overwhelm every business they come in contact with. Avoid them like the plague.