Word: citicorps
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Dates: during 1974-1974
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...notes would be sold not by the bank itself but by its parent holding company, Citicorp, thus neatly getting around federal regulations limiting the interest that banks-but not bank holding companies-can pay to small savers. For a minimum $5,000 initially, a saver could buy notes on which the interest rate would be changed twice a year. Each time it would be set one percentage point above the going rate on Treasury bills, a favorite investment of the rich. Although the interest rate on Treasury bills can go down as well as up, even in an inflationary environment...
Another Try. The plans, however, ran into stiff opposition. The Securities and Exchange Commission pointedly failed to issue its customary "letter of comment," which evaluates new offerings. Arthur Burns, chairman of the Federal Reserve Board, wired Citicorp Chairman Walter Wriston an appeal to hold off the note sale for two weeks so that Government officials and Congressmen could study "the economic and financial implications of this novel type of issue...
...savings and loan associations and mutual savings banks (generally called "thrift institutions"). This would further cripple the housing industry, which depends heavily on mortgage money advanced by those institutions. Even AFL-CIO President George Meany, worried about jobs in the construction industry, joined the chorus of criticism. Citicorp held off the note sale, though it may try again this week...