REMARKS BY HOWARD F. SOMMER 

PRESIDENT & CEO OF NEW YORK COMMUNITY INVESTMENT COMPANY L.L.C. 

(mCIc!J 

GOOD MORNING. I AM PLEASED TO HAVE THIS OPPORTUNITY TO BRIEFLY 

SHARE WITH YOU THE ACTIYITIES OF NYCIC (NEW YORK COMMUNITY 

INVESTMENT COMPANY), AN INVESTMENT AND LOAN FUND LOCATED IN 

MANHATTAN AND SERVICING THE CAPITAL NEEDS OF SMALL BUSINESSES 

THROUGHOUT THE CITY OF NEW YORK, AS WELL AS COMMENT ON THE 

IMPORTANT ROLE PLAYED BY CITIBANK IN THAT EFFORT. 

NYCIC WAS CREATED IN 1995 AS A NEW YORK CLEARINGHOUSE 

ASSOCIATION MULTI-BANK EFFORT TO MEET THE LACK OF INSTITUTIONAL 

SOURCES OF EQUITY CAPITAL AND SUBORDINATED DEBT TO THE SMALL 

BUSINESS COMMUNIT Y. TRADITIONAL SOURCES OF SUCH FUNDING 

VENTURE CAPITAL FUNDS, SBICs, AND INVESTMENT BANKING FIRMSALMOST EXCLUSIVELY FOCUS ON LARGER COMPANIES, WITH RELATIVELY 

HIGH FUNDING REQUIREMENTS, AND WITH POTENTIAL TO CONVERT TO 

PUBLIC OWNERSHIP WITHIN A FEW YEARS. THE OVERWHELMING SHARE OF 

SMALL BUSINESSES, PRIVATELY OWNED, WITH SALES OF $500,000 OR 

%5,000,000, WHOSE FUNDING NEED IS %lOO,OOO OR EVEN S1,000,000, WITH NO 

NEAR-TERM JFO POTENTIAL, BUT WITH POTENTIAL FOR REVENUE GROWTH 

AND EMPLOYMENT GAINS, HAVE NO CHOICE BUT TO RELY ON LIMITED 

PERSONAL FUNDS, EXCESSIVE DEBT LEVELS OR, AS IS OFTEN THE CASE, 

CONCLUDE THAT THEY ARE UNABLE TO PURSUE EXPANSION 

OPPORTUNITIES. THIS PROBLEM IS EVEN MORE ACUTE AMONG WOMAN AND 

MINORITY-OWNED BUSINESSES AND THOSE LOCATED IN AND NEAR THE 

CITY’S LO AND MODERATE-INCOME AREAS. 

A RELATED GOAL OF NYCIC IS TO PROVIDE SIMILAR TYPES OF RISK CAPITAL 

TO NON-BUSINESS ECONOMIC DEVELOPMENT EFFORTS, INCLUDING PRIYATE 

SECTOR INITIATIVES LAUNCHED BY NOT-FOR-PROFIT GROUT’S, AND OTHER 

COMMUNITY-BASED ACTIYITIES RELATED TO FOSTERING ENTREPRENERIAL 

ENERGIES. 

FOR THE PAST TWO AND ONE-HALF YEARS, NYCIC HAS BEEN IDENTIFYING 

GROWING SMALL COMPANIES WITH A NEED FOR PATIENT RISK-CAPITAL IN 

THE RANGE OF S50,OOO TO %1,000,000. WE ARE CLOSE TO FUNDING OUR 

TWENTIETH DEAL, PUSHING OUR INVESTMENT LEVEL PAST THE $5 MILLION 

LEVEL. EQUALLY IMPORTANT IS THE FACT THAT NYCIC’s MONIES HAS 

LEVERAGED AN ADDITIONAL $8 MILLION IN CO-INVESTOR AND BANK 

SUPPORT, THEREBY CAUSING OVER 513 MILLION OF INVESTMENT FUNDS TO 

SUPPORT NEW YORK CITY’S SMALL BUSINESSES. I SHOULD ALSO ADD THAT 

CLOSE TO 80% OF CLOSED DEALS WERE TO COMPANIES EITHER WOMANOWNED, MINORITY-OWNED OR LOCATED IN LMI CENSUS TRACTS. 

CITIBANK’S ACTIVE ROLE IN THIS SUCCESS STORY HAS BEEN MOST 

IMPREsslYE. CITIBANK COMMUNITY DEVELOPMENT AND ITS DIRECTOR, 

MARY COSGROYE, PLAYED A PIVOTAL AND LEADING PART DURING THE 

CONCEPT AND PLANNING STAGES AS EVIDENCED BY MS. COSGROVE’S 
ELECTION TO THE POSITION OF VICE-CHAIRMAN. THIS LEADERSHIP ROLE 

HAS BEEN FURTHER ENHANCED BY CITIBANK’S FINANCIAL SUPPORT, 

WHERE THE BANK PARTICIPATED AT THE HIGHEST OF THREE LEVELS OF 

BANK INVESTMENT AT OVER ONE MILLION DOLLARS. CITIBANK 

COMMUNITY DEVELOPMENT CONTINUES, ON AN ON-GOING BASIS, TO OFFER 

ITS FINANCIAL, CREATIVE AND PERSONNEL RESOURCES TO ADVANCE 

NYCIC’s IMPORTANT MISSION. EXAMPLES INCLUDE REFERRALS OF SMALL 

BUSINESS CLIENTS AND PROSPECTS IN NEED OF LONG-TERM PATLENT 

CAPITAL AND ACCESS TO AND FUNDING OF A VARIETY OF NYCIC SALES AND 

MARKETING ACTIVITIES. 

EQUALLY IMPORTANT HAS BEEN CITIBANK’s COMMITMENT TO THE SPIRIT 

OF NYCIC’s MISSION. MY PERSONAL WORKING EXPERIENCE WITH MS. 

COSGROVE AND OTHER CITIBANK PERSONNEL HAS BEEN CLEARLY 

EVIDENCED BY A DEVOTION TO THE CAUSE OF COMMUNITY DEVELOPMENT 

AND, IN NYCIC’s PARTICULAR CASE, TO THE ADVANCEMENT OF ECONOMIC 

DEVELOPMENT THROUGHOUT THE FIVE BOROUGHS OF THE CITY. 

BEFORE CONCLUDING, I MIGHT ADD THAT MORE RECENTLY I HAVE HAD 

OPPORTUNITY TO WORK WITH THE OTHER PARTY TO THIS MERGER, 

TRAVELERS GROUT’, ON A SIMILAR PROJECT. THE STATE OF NEW YORK 

RECENTLY PASSED LEGISLATION ESTABLISHING CERTIFIED CAPITAL 

COMPANIES ELIGIBLE TO RAISE FUNDS FROM THE INSURANCE INDUSTRY 

FOR VENTURE CAPITAL INVESTING WITHIN THE STATE. NYCIC AND 

ANOTHER CITY-ORIENTED FUND, THE NEW YORK CITY INVESTMENT FUND, 

SUCCESFULLY CO-MANAGED THE FORMATION OF A CAPCO AND RAISED 

SUBSTANTIAL SUMS TO INVEST IN SMALL BUSINESSES, PRIMARIL YINNEW 

YORK CITY AND SURROUNDING AREAS. TRAVELERS, THROUGH TRAVELERS 

INSURANCE AND SALOMON SMlTH BARNEY, PLAYED LEADING ROLES IN THIS 

IMPORTANT ENDEAVOR THE NEW YORK SMALL BUSINESS FUND, COMANAGED BY NYCIC AND NYCIF, WOULD NOT HAVE BEEN CAPABLE OF 

CREATING A NEW $30 MILLION SMALL BUSINESS INVESTMENT VENTURE 

FUND WITHOUT THEIR TIRELESS SUPPORT. ONCE AGAIN, FROM PERSONAL 

EXPERIENCE, I CAN WITHOUT HESITATION LAUD TRAVELERS’, AND 

CITIBANK’s, COMMITMENT TO THE SPIRIT OF THESE EFFORTS ALONG WITH 

THEIR TANGIBLE CONTRIBUTIONS. 

THANK YOU FOR YOUR TIME. I TRUST THESE FEW COMMENTS ARE 

HELPFUL. 
Federal Reserve Board Public Hearing on Travelers Group/Citicorp Merger 

Federal Reserve Bank of New York 

June 25,1998 

National Academy Foundation Support of Travelers Group/Citicorp Merger 

Written Submission of Testimony of John J. Ferrandino 
Descriation of the NAF and the Academv of Finance 

The National Academy Foundation (NAF) is a nonprofit educational organization that 

combines the knowledge and experience of education, business, and government leaders 

to better prepare public high school students for their futures: as college students, 

members of the American workforce, and beyond. NAF accomplishes these goals by 

seeking out and supporting partnerships between business and public schools. These 

partnerships take the shape of Academies-essentially, schools within schools-which 

prepare students for careers in finance, travel and tourism, and public service through a 

combination of in-school curriculum and work-based paid internships. Each local 

program has its own advisory board comprising local business leaders and educators who 

collectively support Academy activities and provide industry training for teachers. All 

NAF Academies have at least one college partner to provide students with an introduction 

to college level course work in their chosen Academy field of study. 

The first Academy, in the area of finance, opened at one Brooklyn, New York high 

school in 1982 with 35 students. As ofthis September 1998, NAF will have nearly 300 

Academies in Finance, Travel & Tourism, and Public Service in 33 states across the 

country, plus the District of Columbia. In just three years, projections indicate a total of 

500 NAF Academies in all SO states. In each of the three subject areas, NAF Academies 

support career-relevant secondary education and training. Over 90% of NAF graduates 

continue their education at a two- or four-year college. Attached is a General S~utistical 

Overview of the NationalAcademy Foundation which further illustrates the great 

success of NAF programs. 

Through its extensive outreach and expansion, NAF is today at the forefront of the 

school-to-work movement. It is a focus of and model for education reform efforts 

nationwide. It is the only national organization that successfully builds career academies 

into the decentralized system of American public education. Of the more than 20,000 

students who are or have been NAF Academy students, an estimated 65% have been 

identified as being at risk of dropping out of school due to their socio-economic 

circumstances, and over 65% are identified as members of minority populations. NAF’s 

rapid expansion is indicative of a great demand among public schools for a successful 

reform model. 

Travelers Group Support of NAF 

The Travelers Group and Sanford I. Weill have served as key factors in the growth and 

development of the National Academy Foundation from one Academy of Finance in 1982 

to a national leader in the school-to-career movement. Roundly acknowledged as the 

founder of the Academy of Finance, Mr. Weill, then Chairman & CEO of Shearson Loeb 

Rhodes, approached the New York City Board of Education in 1980 with the goal of 

developing an educational component that would prepare young people for careers in the 
financial services operations. In 1982, when Mr. Weill was the President of American 

Express, he and American Express helped to open the first Academy of Finance, which 

was designed by educators as a replicable model appropriate for various industries and 

geographic regions with measurable benefits to young people, teachers, schools, and the 

corporate community at large. With this “win-win” proposition in place, the Academy 

model has grown rapidly, with broad corporate support, nationwide. 

After leaving American Express to head Commercial Credit, which became Primerica, 

which then became Travelers Group, Mr. Weill increasingly supplemented his personal 

leadership with that of the Travelers Group corporate structure. This has provided NAF 

and its member programs with Travelers Foundation support, internship placements in all 

subsidiary companies, and Advisory Board participation from both middle and upper 

management employees. 

From 1990 to the present Travelers Group has donated over $4.5 million to NAF which 

has helped to support the development of computerized, industry-validated curriculum, 

comprehensive staff development (i.e., teacher training), and technical assistance and 

quality assurance from the NAF national office to its Academy programs nationwide. 

These essential services that NAF provides to its member programs are the pillars on 

which successful NAF Academies are built. 

Travelers Group Support of Local Academies 

In addition to the support provided to NAF’s national activities, Travelers Group -- its 

subsidiaries, local offices, employees, and The Travelers Foundation -- sponsors paid 

internships, scholarships, grants to local programs and other services that directly impact 

the education and improve the lives of the young people involved in NAF Academy 

programs. In New York City alone, Travelers Group sponsors approximately 100 paid 

internships for public high school students in the Academy of Finance on an annual basis 

and provides additional internships for Academy of Finance teachers. 

Together, Salomon Smith Barney and The Copeland Companies - both Travelers Group 

subsidiaries - provide business Advisory Board leadership, paid internships and 

scholarships for Academy of Finance students in nearly every major city in the United 

States where NAF has a significant presence. Employees from Primerica Financial 

Services and other Travelers Group employees serve as guest speakers in Academy of 

Finance classrooms and Travelers Group employees from all of the subsidiaries have 

served as mentors and donated vast amounts of time to help students with such things as 

resume writing and interviewing skills. These same employees may also make personal 

donations to scholarship funds for Academy students to go on to college. 

The Travelers Foundation makes grant funding available for every Academy of Finance 

program that demonstrates Travelers Group employee involvement. These grants are 

designed to fund supplemental curriculum materials, student competitions and classroom 
simulations, state of the art computers and computer software and financial services 

related field trips. 

Travelers Group Industry Leadership to Support NAP Programs 1 

While Travelers Group has made significant contributions to NAF and the Academy of 

Finance as an individual corporation, its impact on broadening the base of NAF’s support 

to serve more young people has been and, NAF believes will continue to be, one of its 

major contributions and legacies to American education, Under the leadership of Mr. 

Weili, the National Academy Foundation’s Board of Directors and base of support has 

expanded to include Merril Lynch, Inc., Prudential Securities, and Bloomberg 

Information Services. The addition of these companies as NAF’s National Partners is the 

first in what NAF believes will be a series of steps to ensure that students in the Academy 

of Finance program will receive paid internships, recognition and employment 

opportunities from an increasing number of firms in the financial services industry. As 

the Academy of Finance student population is comprised of over 70% minorities and over 

60% female, the continuing efforts of Travelers Group to involve more and more 

financial services companies with NAF Academies will logically serve to increase 

minority and female employment and influence in the financial services industry as a 

whole. NAF believes that the merger between Travelers Group and Citicorp is yet 

another positive step that will enable NAF to involve more financial services industry 

firms in its mission to serve all students. 

I Conclusion I 

Travelers Group support for the National Academy Foundation has a great and positive 

impact on more than 13,000 high school students. NAF sincerely believes that the 

merger between Travelers Group and Citicorp will greatly increase NAF’s ability to 

provide quality educational opportunities to America’s young people and will create a 

more diverse workforce for the financial services industry of the 21” century. It is for 

these reasons that the National Academy Foundation wholeheartedly supports the merger 

between Travelers Group and Citicorp. NAF thanks the Federal Reserve Board for the 

opportunity to express that support. 
NATIONAL ACADEMY FOUNDATION 

GENERAL STATISTICAL OVERVIEW 

ACADEMYOFFINANCE PUBLIC SERVICE 

199 7-1998 School Year 

ACADEMY OF 
q NAF States 

New States - Fall 

NAF BY THE STATES 

1998 
PROGRAM SITES 

1997 - 1998 Academic Year 

NAF Programs are located in: 

238 High Schools 

117 School Systems 

31 States and the District of Columbia 

AOF Programs are located in: AOTT Prowarns are located in: 

136 High Schools 90 High Schools 

, 

83 School Systems 

30 States 

57 School Systems 

24 States and the District of Columbia 

APS Proprams are Located in: 

12 High Schools 

9 School Systems 

7 States 
NATIONAL ACADEMY FOUNDATION 

NAF PROGRAM EXPANSION 

1982 - 1997 

Number of 

Programs 

150- 

IOO106 

Year 

1982 I983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 

AOF 1 5 5 8 13 22 29 35 45 50 58 60 76 93 114 136 

AoI‘~l‘ 2 2 2 8 12 19 38 49 64 78 90 

MS 1 5 6 8 8 10 10 12 

‘fo’1;21, 1 5 5 8 13 24 31 37 54 67 83 106 133 167 202 238 
Number of 

Sites 

800 - 

700 - 

600 - 

500 - 

400 - 

300 - 

200 - 

loooNATIONAL ACADEMY FOUNDATION 

PROJECTED GROWTH 

238 

288 

-- 

338 

1997 - 

OF ACADEMY SITES 

2007 

488 

388 

538 

438 

Year 

588 

638 

738 
Number of 

Students 

14,000- 

/ 

12,000- 

10,000- 

8,000- 

6,000- 

NATIONAL ACADEMY FOUNDATION 

NAF STUDENT ENROLLMENT HISTORY 

1982 - 1997 

13,967 

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 

Year 

\‘K.\H 1982 19x3 198-i 1985 1986 I987 1988 1989 1990 1991 IY92 1993 1994 1995 1996 1997 

!\()I: 35 200 350 420 710 1069 1541 2019 2715 3169 3628 4139 5340 6226 7127 8163 

;\O'l“l‘ 76 61 195 564 904 1519 2006 2878 3659 4510 4968 

AI'S 63 188 339 494 427 367 771 836 

'1‘01~.\1. 35 200 350 420 710 1145 1702 2214 3342 4261 5486 6639 8645 10,252 12,408 13,967 
NATIONALACADEMYFOUNDATION 

Number of 

Graduates 

NAF GRADUATE HISTORY 

1984 - 1997 

2,500. 

2,000. 

1,500. 

1,000. 

500- 

O3,056 

1,270 

2,170 

1,902 

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 

Year 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1991 1995 1996 1997 

AOF 35 134 137 196 267 458 547 639 757 926 1028 1112 1350 1950 

AOT1 52 74 82 187 248 384 654 687 924 

A I’S 96 113 136 133 182 

‘T‘oT:~L 35 134 137 196 267 510 621 721 944 1,270 1,525 1,902 2,170 3,056 

I TOTAL NUMBER OF ACADEMY GRADUATES = 13,488 I 
NATIONAL ACADEMY FOUNDATION 

COLLEGE BOUND 

NAF ACADEMY GRADUATES 

1989 - 1997 

1989 1990 1991 1992 1993x 1991x 199s* 1996” 1997” 

Graduates 510 621 721 944 1270 1525 1902 2170 3056 

College Bound 464 558 670 861 1139 1393 1708 1953 2719 

College Bound 91% 90% 93% 91% 90% 91% 90% 90% 90% 

* Figures include Academies of Finance, Travel & Tourism and Public Service graduates 

Number of 

Companies 

1600 - 

1400 -i 

NATIONAL ACADEMY FOUNDATION 

INTERNSHIP PROVIDERS 

1989 - 1997 

1200 - 

800 - 

600 - 

1993 1994 1995 1996 1997 

Year 
NATIONAL ACADEMY FOUNDATION 

INTERNSHIP EARNINGS 

1989 - 1997 

Dollars Earned 

(in millions) 

6- 

5- 

4- 

3- 

2- 

lo1989 1990 1991 1992 1993 1994 1995 1996 1997 

Year 

*Salaries for 1989, 1990 &d 1991 valued at $5 per hour for 7 weeks 

1992-1997 figures calculated at $5.50 per hour for 7 weeks 

._. 
NATIONALACADEMYFOUNDATION 

NAF ETHNIC/RACIAL COMPOSITION 

1997 - 1998 Academic Year 

Asian/Pacific 

Islands 

9% 

Other 

2% 

Caucasian 

Black 

31% 

I FEMALE = 62% MALE = 38% 

I 
NATIONAL ACADEMY FOUNDATION 

NEW PROGRAM SITES 

1997 - 1998 Academic Year 

Proeram Sites 

Montgomery, AL 

San Jose (East), CA 

Stamford, CT 

Bay County, FL 

Brevard County, FL 

Broward County, FL 

Dade County, FL 

Volusia County, FL 

Chicago, IL 

Jefferson Parish, LA 

Calvert County, MD 

St. Paul, MN 

Kansas City, MO 

St. Louis, MO 

Albany, NY 

Middletown, NY 

West Seneca, NY 

Las Vegas, NV 

Warwick, RI 

East Providence, RI 

Beaufort County, SC 

Nashville, TN 

San Antonio, TX 

TOTAL NEW AOF 

# of ProPrams Proeram Sites # of ProPrams 

1 Broward County, FL 

1 Atlanta, GA 

1 Chicago, IL 

1 Jefferson Parish, LA 

1 Orleans Parish, LA 

1 Anne Arundel County, MD 

1 Berkshire County, MA 

1 Newark, NJ 

1 New York, NY 

1 Charlotte, NC 

1 Woonsocket, RI 

2 Nashville, TN 

1 Dallas, TX 

1 Salt Lake City, UT 

1 

1 TOTAL NEW AOTT 

1 

1 

1 

3 

1 

2 

1 

1 

1 

1 

1 

2 

1 

1 

1 

1 

18 

1 

1 

1 

1 

1 

24 

:\C:.-\DE\I\ OF PI~BLIC: SF.H\~I(‘E 

Program Sites # of Proprams 

Anne Arundel County, MD 2 

TOTAL NEW APS 2 

TOTAL NEW SITES: 44 
ACADEMY OF FINANCE 

PROGRAM SITES 

1997 - 1998 Academic Year 

Propram Sites # of Proerams 

Montgomery, AL I 

Burbank, CA 1 

Los Angeles, CA 6 

San Francisco, CA 7 

San Jose (East), CA 3 

San Jose (Unified), CA I 

Denver, CO 1 

East Hartford, CT 1 

Hartford, CT 1 

Stamford, CT 1 

Wilmington, DE 1 

Alachua County, FL 1 

Bay County, FL 1 

Brevard County, FL I 

Broward County, FL 7 

Dade County, FL 3 

Duval County, FL 1 

Hillsborough County, FL 1 

Lee County, FL 1 

Orange County, FL 2 

Osceola County, FL I 

Palm Beach County, FL 1 

Polk County, FL 1 

St. John’s County, FL 1 

St. Lucie County, FL 1 

Seminole County, FL 1 

Volusia County, FL 1 

Clayton County, GA 3 

Henry County, GA I 

Honolulu, HI 2 

Chicago, IL 2 

Indianapolis, IN 1 

Jefferson County, KY 2 

Mercer County, KY 1 

Jefferson Parish, LA 4 

Orleans Parish, LA 2 

Anne Arundel County, MD 1 

Baltimore, MD 1 

Baltimore County, MD 2 

Calverl County, MD 1 

Montgomery County, MD 2 

Proeram Sites # of Proerams 

Prince George’s County, MD 

Boston, MA 

Detroit, MI 

St. Paul, MN 

Kansas City, MO 

St. Louis, MO 

Omaha, NE 

Las Vegas, NV 

Jersey City, NJ 

Red Bank, NJ 

Albany, NY 

Buffalo, NY 

Middletown, NY 

New Hyde Park, NY 

New York City, NY 

Northport, NY 

West Seneca, NY 

Yonkers, NY 

Charlotte, NC 

Cumberland County, NC 

Durham, NC 

Iredell County, NC 

Union County, NC 

Wake County, NC 

Cincinnati, OH 

Cleveland, OH 

East Providence, Rl 

Providence, RI 

Warwick, Rl 

Anderson County, SC 

Beaufort County, SC 

Oconee County, SC 

Pickens County, SC 

Chattanooga, TN 

Nashville, TN 

Dallas, TX 

San Antonio, TX 

Salt Lake City, UT 

Gloucester, VA 

Seattle, WA 

4 

I 

1 

2 

I 

1 

3 

1 

1 

1 

1 

1 

1 

1 

II 

1 

2 

1 

2 

1 

1 

1 

1 

1 

1 

1 

1 

1 

1 

1 

I 

1 

I 

1 

I 

I 

1 

3 

1 

3 

AOF TOTAL: 136 
ACADEMY OF TRAVEL & TOURISM 

PROGRAM SITES 

1997 - 1998 Academic Year 

Prow-am Sites # of Prowarns 

Deer Valley, AZ 1 

Burbank, CA 1 

Culver City, CA 1 

Los Angeles, CA 2 

Monterey, CA 1 

San Francisco, CA 2 

San Jose (East), CA I 

Sweetwater Union, CA 1 

Denver, CO 2 

Washington, DC 1 

Broward County, FL 4 

Dade County, FL 3 

Duval County, FL 1 

Lee County, FL 1 

Martin County, FL 1 

Orange County, FL 1 

Osceola County, FL 1 

Palm Beach County, FL 1 

St. Lucie County, FL 1 

Seminole County, FL 1 

Volusia County, FL 1 

Atlanta, GA 3 

Honolulu, HI 1 

Kauai, HI 1 

Maui, HI 3 

Chicago, IL 3 

North Chicago, IL 1 

Fayette County, KY 1 

Jefferson Parish, LA 4 

Prom-am Sites # of Prowarns 

Orleans Parish, LA 

Anne Arundel County, MD 

Baltimore, MD 

Berkshire County, MA 

Boston, MA 

Detroit, MI 

Minneapolis, MN 

Newark, NJ 

Nassau County, NY 

Las Vegas, NV 

New York City, NY 

Westchester County, NY 

Charlotte, NC 

Chariho, RI 

Cranston, RI 

Newport, RI 

Providence, RI 

Warwick, RI 

Woonsocket, RI 

Beaufort/Jasper County, SC 

Hilton Head Island, SC 

Chattanooga, TN 

Nashville, TN 

Dallas, TX 

Jordan, UT 

Salt Lake City, UT 

Roanoke, VA 

King County, WA 

3 

I 

1 

1 

1 

1 

1 

2 

1 

1 

6 

1 

3 

1 

1 

1 

1 

I 

1 

1 

1 

1 

1 

6 

1 

2 

1 

1 

AOTT TOTAL: 90 ~ 

I 
ACADEMY OF PUBLIC SERVICE 

PROGRAM SITES 

1997 - 1998 Academic Year 

Program Sites # of Programs 

Mobile, AL 1 

San Jose (East), CA 1 

Hillsborough County, FL 1 

Tallahassee, FL I 

Anne Arundel County, MD 2 

Boston, MA 1 

Buffalo, NY 1 

New York City, NY 3 

Chattanooga, TN 1 

APS TOTAL: 12 
Federal Reserve Board Public Meeting on Travelers Acquisition of Citicorp 

Thursday, June 25,1998 

Federal Reserve Bank of New York 

New York City 

II:25 a.m. 

Mark A. Emmett 

Chancellor 

University of Connecticut 

Testimonv: 

I am Mark A. Emmert, chancellor of the University of Connecticut. I welcome the 

opportunity provided by the Federal Reserve Board to participate in this public 

meeting regarding the proposal by Travelers Group Inc. to acquire Citicorp. I 

would like to speak specifically of Travelers’ record of corporate responsibility as 

manifested in’its relationship with the University of Connecticut and in its support 

of education and community development in the City of Hartford and the State of 

Connecticut. 

The University of Connecticut, founded in 1881, is a Land Grant and Sea Grant 

university as well as a Space Grant consortium institution. It is one of only two 

Research 1 public universities in New England and the only Ph.D. granting public 

university in the State. It is designated in the State Constitution as Connecticut’s 

flagship university. There are some 22,000 students at the University, studying 

in 17 schools and colleges offering more than 100 undergraduate and some 80 

1 
graduate and professional degree programs. The main campus is in Storrs. 

Additionally there are five undergraduate regional campuses [in Avery Point, 

Greater Hartford, Stamford, Torrington, and Waterbury], Schools of Social Work 

and Law in Greater Hartford, and a complex of health and educational facilities 

comprising the University of Connecticut Health Center in Farmington. 

The University, given its mission, has a specific role in fulfilling the needs of the 

State, its citizens, and its economic institutions. Further, it has a strategic goal of 

fostering a sense of partnership with various entities in the State. The success of 

the University in meeting Connecticut’s educational, economic, and social needs 

depends on its developing active, mutually supportive partnerships. 

The University’s already substantial contributions -in supplying an educated 

citizenry, in economic development, social outreach, the arts, and scientific 

advances, among others-can only enhanced through partnerships such as that 

which exists between the University and Travelers, 

Earlier this year [on January 61, the University and Travelers announced a major 

agreement under which Travelers donated 30,000 square feet of space in the 

Travelers Education Center in Hartford to the University for three years. 

[Travelers values this donation at $1.7 million.]. The Travelers Education Center 

gives the University a superior platform from which to offer courses and 

programs which will enhance the vitality of Hartford’s insurance, financial 

services and managed care industries. It also permits the University to extend 

2 
our educational activities in Connecticut’s urban business centers. It also 

enables us to offer additional courses with a solid information technology base. 

Travelers’ participation in this public-private partnership is not only direct 

evidence of its sense of corporate responsibility, it is also another example of the 

confidence to meet their needs that business leaders have shown in the 

University. 

The Travelers Education Center is a superior educational facility-with computer 

laboratories, classroom space, Internet access, and potential for distance 

learning-for offering business-related courses and programs. Under the 

Education Center agreement with Travelers we are able to offer undergraduate 

general studies courses in information systems/operations management as well 

as MBA level courses. We have just decided to offer our recently-approved 

Master of Science in Accounting Program in two Hartford area venues including 

the Travelers Education Center. In this way we are able to use resources more 

effectively and to serve a larger market. Both the University and those who 

employ accountants win. Other classes to be offered will include professional 

insurance certification courses and computer programming. Future course 

offerings will be market-driven and will respond to employer demand for welltrained employees in Greater Hartford’s information technology, health care, 

insurance, and financial service industries. 

3 
Travelers Group Chairman and Chief Executive Ofticer Sanford Weill announced 

the Education Center agreement in the context of a call for educational 

development as the engine of economic growth in the Hartford, Connecticut 

region. He said, “the central strategy for developing a healthy, vibrant economy 

in a community is the creation of a well-educated pool of professionals.” 

Travelers’ corporate good sense acknowledges that “a reliable flow of talent” is 

attractive to corporations and creates new jobs, 

Travelers’ efforts to foster economic development are multipartite. Higher 

educational and corporate goals come to a confluence once again in its 

promoting the business education of talented high school students through its 

continuing support of the Academy of Finance programs in two Hartford area 

high schools. Since its founding in 1982 by Sanford Weill and the New York City 

Board of Education, the Academy of Finance program has had excellent 

success: more than 90 percent of its students continue their education at two-or 

four-year colleges and more than 50 percent of those eventually go on to work in 

the financial services industry. The University will match the scholarship 

commitment supported by the $150,000 endowed Travelers Scholarship Fund by 

offering tuition scholarships to several Academy of Finance graduates attending 

the University. 

These most recent actions on the part of Travelers are extensions of the 

University’s long history of partnership with the company. Travelers has 

4 
supported numerous programs at the University including the School of 

Education, the School of Business Administration, Actuarial Sciences, the Law 

School and the Health Center. Its nearly $2 million in contributions to the 

University--beyond the recent Education Center donation--include the Travelers 

Chair in Geriatrics and Gerontology at the Health Center, continuing support for 

the Travelers Center on Aging, scholarships, and a variety of contributions to the 

University’s Research Foundation to assist faculty efforts in high school writing 

and math/science laboratories, corporate training, small business development, 

pharmacy studies, and evaluation of tutorial programs for Hispanic school 

children. 

I am pleased, on behalf of the higher education community and the University of 

Connecticut, to come before you today to give testimony to Travelers welldefined and productive sense of corporate responsibility and to underline the 

positive impact it is having on education and community development in 

Connecticut. 

Thank you 

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