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Presentation of the company
 Ownership: Citicorp is a publicly owned company traded on the New York, Chicago, Pacific, London, Amsterdam, Tokyo, Zurich, Geneva, Basle, Toronto, Dusseldorf, and Frankfort Stock Exchanges.  Officers: John S. Reed, Chmn., 58, 1997 base salary $31,100,792; Paul J. Collins, VChmn. Emerging Markets, 60, 1997 base salary $13,993,188; H. OnnoRuding, VChmn., 57, 1997 base salary __BODY__,348,000; Victor J. Menezes, Exec. VP & CFO  Employees: 93,700 (including 54,800 outside the United States)  Principal Subsidiary Companies: As a global company with approximately 3,000 locations and affiliate offices worldwide, Citicorp's principal subsidiaries include: Citibank Mexico (SA Grupo Financiero Citibank); Citibank, NA; Citibank OverseasInvestment Corporation; Citibank Privatkunden AG (Germany); Citicorp Holdings, Inc.; Citicorp Mortgage, Inc.; Citicorp North America, Inc.; and Court Square Capital Ltd.  Chief Competitors: The company is subject to competition from both bank and non-bank insititutions that provide financial services. Citicorp's primary competitors in the United States include: Chase Manhattan Corp. and BankAmerica.Citicorp in brief
Citicorp, also known as Citibank, is the second-largest U.S bank. Citicorp, along with its subsidiaries and affiliates, is a financial service institution serving approximately 3,000 locations, offering retail and corporate products in 100 countries worldwide. It is the world's largest credit card issuer and the sole provider of global consumer banking. Its services includesavings and checking accounts, credit cards, and consumer loans. Because Citicorp operates as a local bank, many of its competitors are, in fact, other local banks. Citicorp conducts business within two franchises, Global Consumer and Global Corporate Banking. Though Citicorp is second to Chase Manhattan Corporation on the

U.S. bank asset ranking, Citicorp has the larger global presence.Worldwide Citibanking accounts numbered 20 million as of March 31, 1998, up 6 percent from 1997. Citicorp's operations span 37 countries in central/eastern Europe, the Middle East and Africa; 26 countries in Latin America; 16 countries in Asia; 19 countries in western Europe, as well as Canada and the United States. The company's goal is to have 1 billion customers worldwide by 2010, up from about 60million today.

The history of the company
Colonel Samuel Osgood founded City Bank of New York in 1812, later renamed National City Bank of New York. It became the first commercial bank to offer consumer loans and by 1939 had more than 100 offices in foreign lands. In 1955 it merged with First National (New York) and was again renamed First National City Bank, only to change to Citicorp in 1974.Growth continued in the late 1970s when Walter Writson, the company's CEO at that time, launched Citicorp's international business. Citibank entered the credit card market and became the largest issuer in the United States by 1977. It was also the first bank to present ATMs (automatic teller machines). John Reed, the individual behind the creation of these machines, became Citicorp's chairman in1984. By the 1980s Citibank was the largest bank in the United States, spreading into San Francisco, Chicago, Miami, and Washington, DC. However, the 1980s proved to be difficult times for the company due to defaulted loans overseas, which cost the company $4 billion in 1987 and 1989. Following this loss Citibank faced the decline of the commercial real estate market in the United States.Struggling to regroup, the company acquired $2.6 million by recapitalizing in 1991 and 1992. Selling assets and eliminating dividends also proved necessary for survival. In 1992 the U.S. government put a limit on the number of loans the company was permitted to make.

External environment analysis:
The Federal Reserve System
The Federal Reserve Act of 1913 established the present day Federal Reserve...
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