Don't Expect Citicorp To Play Copycat

The anxiety level at Citicorp just jumped. But don't look for the nation's largest banking company to leap into a merger. Citi Chairman John S. Reed and crew are still busily tidying up yesterday's messes: loans to the Third World, real estate developers, and buyout artists among them. "Citi's only reaction now has got to be to clean up its balance sheet," says James J. McDermott Jr., banking analyst at Keefe, Bruyette & Woods Inc. "There's very little they can do on the expansion front until their capital ratios are stronger."

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