Congress, CEO, Citicorp discussed on Marketplace All-in-One


For listeners who don't remember this in order for these two companies to come together basically a a law that was passed in the aftermath of the depression had to go away tremendous amount of political capital was spent here can you tell me about the the characters sandy weill and what he did while the law dates back to nineteen thirty three the glass steagle act which as you point out was passed in the aftermath of the great depression and that said that traditional commercial banking with insured deposits needed to be kept separate from the investment banking when you're dealing with the securities markets so this deal between city group and at the time travelers could only go completely threw by getting rid of that law so congress hadn't even passed the new law yet and sandy weill ceo of travelers and john reid ceo of citicorp announced to deal well that's crazy i mean this market value of these companies thirty billion dollars on day one the steady citicorp stock went up twenty five percent but the fact that you would nounce a deal that couldn't get fully consummated without congress passing a law that's either courage hubris or just put what do you think we know now about that merger that that we should have known for talk about getting it wrong on day one lizzy i came prepared you did here's some comments at the start one of the most successful ever a new epic no one doubted for a single moment certainty it was the significance of the thing from from the notes of the titanic what if i took off to this was the titanic of corporate mergers everyone was so excited on day one this was going to be the deal to transform global finance by the way nineteen ninety eight two decades ago when this deal was announced that was also the year that the movie titanic won the academy award what was the big line from the movie i'm king of the world.

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