Federal Reserve Bauk of New York 

Public Meeting 

Travelers Group Inc. o&Gs.ition of Citibank 

Jane 26,199s 

Statement 

F. Carlisle Towery 

President 

Greater Jamaica Development Corporation 

Greater Jamaica Development Corporation (GJDC) is a private, not-for-profit local 

development organization whose mission is to encourage and facilitate the economic recovery 

and revitalization of downtown Jamaica and its environs. 

GJDC was formed in 1967 by business, civic and community leaders - including 

commercial banks - and has worked since that time in close partnership with all sectors to 

carry out the plan to transform Jamaica’s older downtown into a modern center of business, 

commercial and industrial employment, higher education, the arts, transportation and housing 

improvements This plan was prepared by Regional Plan Association, City government, and 

local leaders to service some half-million residents who live in 21 neighborhoods around this 

downtown. 

We appreciate this opportunity. We are, after all, end-users of financial institution 

products and onr community is the beneficiary when these products are shaped and tailored 

and prioritized to enable community development and to capacitate its practitioners. 

My comments are to emphasize the involvement and support we have received from 

Citibank over the 31 years of our economic development and community reinvestment work 

in Jamaica. This community - working to recover from a ten-year period, 1975 to 1985, of 

severe economic trauma, uncertainty and a general loss of public confidence - has benefited 

significantly from Citiba&s good works. It is not an overstatement to characterize the good 

works of this good corporate citizen as exemplary. 

Citibank has provided strong and on-going leadership for Greater Jamaica 

Development Corporation’s efforts, serving consistently on our Board with able senior 

representation which has been exceptionally active and involved. CitibanKs contributions to 

our Board’s activities have included a high level of intelligence and interest in our general 

governance, sponsorship of retreats, meetings and special events, chairs of committees, 
provision of in-kind setvices - including a loaned executive for two years who helped us 

establish a special Revolving Loan Fund - advocacy with government, and financial 

contributions at lea&ship levels toward our general operations and for special projecta 

CitibaukhasparticipatedinthepmvisiouoflocalsmaUbusiness loans through out 

revolving loan fund, which is capitslizd by the U.S. Economic Development Admb&&o~ 

NYS Empire State Development pnd the City of New York’s Deparrment of Business %rvices 

usingfederalCcmmunityDeve@neatBlockChantFunds. Cltibaukpmvideduswitha 

mcatgageloauforhn&RovingatMIr&n8&ngourheadquaarr o@iccbuild&. (TtibanLhs 

providedope&ngsuppol&alougwithBoardorothezleade&ip,forthrecofourasm&ted 

. . m-JamaicaAttsCentez,King&uorM~audJamaicaBuaiucss 

EIz!Ee-. Throughtheir pkme&ng’CultureBuildsC “‘l”.FX= and 

~&~intheArts&wanlFu&Citiba&helpedlauuchauartsnutiativehaecalled 

Coll&o&veJamaica,andcoatinuestosupportCCJ. lheyhavepmvidedlesdarsbip. 

aud support far Yak College, auuther key project for Jamaica inwhichwewere’ -@al. 

Warkingwith~~spaoplei$inevitablyaproductiveprocesPforus Tlteyaa 

thorwghly~respoosiveandnspoosible,andeagertofacilitstensults--to~ 

thingsdone. lYteirpasmaland~involvementinJamaica havebeenmaterkdiatk 

success of this communiity’s revitaExation. We wexe pleased with the uew Citigmup’s pledge 

of substantial resow for continued wmmimity development and with their assllliillcts of a 

continued high level of involvement following the pmlmsed acquisition. 

As a long-t- practitioner of local economic development - working in the tmnches 

onthefront-line,ifyouwill-letmerespectfullyraisesomemanasandquestionsfolthe 

new Citigroup’s considemtion. 

In our three decades of work in Jamaica - very challen@g endeavors which ate high 

inpublicpurpose-onlymodestinvolvementhascomefmmimumnce UmlpaniesatKlthe 

investment banking community. GJDC enjoyed the services of a losned exezutive fmm 

Metmpolitan Life for a key project; the Merrill Lynch Foundation enabled start-up of an 

important iudusttial retention effort aud Merrill Lynch has setved for many years on our 

Board. But out experie-nce suggests that the interests of the investment bankingand&uatlce 

industriestypicpllyappearstobeelsewherc,orontyslightlyrelatedto~econamicar 

comnumity development 

Thus, we are keen to know whether this acquisition will unleash the ski& know-how 

and resoumes of Travelers and of Solomon/Smith Bamey on community development? And, 

if so, how? 

l Will any of the products of the Travelers Group be tailored and fccussed on 

community devw objectives? Fur example, we would welcome the long-view of 

hlsumlsin financine small real e&&e umlect& And it woukl be very helpful for Jamaica’s 

1ocaleconomyifouruJmmuni~ssmall conhactors were enabled to participate in the major 

construction projects underway +I Jamaica through preaualification and me&l bondjnn 

metha 

2 
l Will Salomon/Smith Bamey devote its entrepreneurial know-how to places like 

Jamaica, bringing its professional skiUs to bear on community development? Many of our 

cca4xmk - perhaps most of them - are simply outside corpomte America’s “mainstr-” 

often small and not well capitalized, many are minority and womenswned. But they are 

often energetic and with significant potential! 

We would welcome a partnership with an investment bank to identify and muture the 

special oppommhies in Jamaica - oppommities being missed, we believe - to create 

marketathereandtheproductstoservethem. Thexeshouldbewaysandmeanstomake 

these. companies eligible for the capital markets! 

For us, these are intriguing and proper questions for the new Citigroup given the 

special capacities it will have from combining commercial banking, insurance and investment 

banking. 

3 
June 24, 1998 

Mr. William J. McDonough, President 

Federal Reserve Bank of New York 

33 Liberty Street 

New York, NY 10045000 1 

Dear Mr. McDonough: 

My name is Samuel C. Hamilton. I am the Executive Director of the 

Hartford Economic Development Corporation and the Greater Hartford 

Business Development Center, Inc. of Hartford, Connecticut. These 

companies provide technical assistance, loan packaging and subordinate 

debt financing for smaI1 and medium-sized businesses in Hartford and the 

surrounding region. Both organizations have provided loan assistance for 

business start-up and expansion projects located in low and moderate 

income neighborhoods. Since 1983, we’ve provided more than $19.5 

million in loan assistance, resulting in the creation of 833 new jobs and the 

retention of 1,674 additional positions. Since we are considered the lender 

of last resort, these much needed funds help to create jobs in companies that 

can provide goods and services - that ordinarily would not be accessible - to 

the residents of their community. Of the 450 clients we serve annually, 

more than 60% of our loans are given to minority and women-owned 

businesses. 

The ability of the Economic Development Corporation and Business 

Development Center to provide services at no charge for more than 20 years 

is directly related to the support of outstanding corporate citizens like 

Travelers. In our early years, Travelers donated management and technical 

resources to our firm. Travelers also provided $1 million to fund a loan 

pool targeted for women and minority owned business at a time when open 

access to capital for these groups was questionable. Travelers has 

consistently been represented on our Boards of Directors and has helped 

share our growth and contribution to the community. 

Hartford Economic Development Corporation, Room 204. IS Lewis Street. Hanford. CT 06103. (860) 527-1301, Fax: (860) 727.9224 
Page 2 

On January 1, 1997, Travelers converted its original low-interest loan of $1 

million to a grant. This generosity will enable our organization to continue 

to revolve this loan pool for a considerable period of time. 

As you might expect, Travelers involvement in our community has not been 

limited to just the companies I represent. A $100,000 grant in 1986 to the 

Connecticut Small Business Development Center, and funding for the 

Women’s Business Enterprise Specialist program have enabled these 

organizations to flourish and become the Entrepreneurial Center at the 

Hartford College for Women. This program has become a national model 

for helping women entrepreneurs gain self sufficiency. The Center 

continues to be a collaborative effort between corporate, public and private 

entities. In 1997, the Travelers Foundation gave the Entrepreneurial Center 

a $75,000 grant to help provide small-business loans for women. 

Lastly, as Chairman of the Board of the United Way of the Capital Area, I 

have seen first hand Travelers’ commitment to assuring that those with the 

greatest needs and the least resources are served by the United Way 

Agencies in our community. In the last four years alone Travelers’ 

employees have contributed more than $3 million through the Community 

Campaign. Add to that Travelers’ corporate gifts and the four-year total 

jumps to more than $4.2 million. Travelers’ corporate involvement is 

consistently positive in most, if not all areas of concern in Hartford and the 

region. 

It is for these reasons and others too numerous to mention in the time 

allotted, that I speak in favor of the combining of Citicorp and the Travelers. 

I am certain that the new entity will do even greater good than is being done 

in the communities they serve. 

Respectfully submitted, 

Executive Director 

SCH/fp