Citigroup plans major expansion in Asia

Citigroup plans major expansion in Asia

SINGAPORE (AP): Asia will be a major target in U.S. financial
services giant Citigroup's plans for global expansion, executive
committee chairman Robert E. Rubin said on Tuesday.

"Our strategy is to grow very aggressively in Asia," Rubin
said at a conference in Singapore on electronic finance.

Citigroup's recent acquisition of Associates First Capital
Corp., which has a major consumer finance business in Japan, is
an example of the lender's interest in Asia, Rubin said.

Citigroup will pay US$29.83 billion in stock for the Dallas-
based company.

Citigroup wants to "build our capabilities in this really
quite remarkable part of the world," said Rubin, who served as
Treasury Secretary under President Clinton until July last year.

Rubin described the world's developing economies as, "probably
the single greatest opportunity" for Citigroup as it pursues its
expansion plans.

But he said he was concerned that economic and financial
reform efforts in some Asian countries appeared to be slowing as
the region rebounded from its economic crisis of 1997 to 1998.

"In Asia, while there is much that is positive, and the most
likely scenario may well be favorable, I believe, at the same
time, that complacency may be setting the stage for trouble later
on," he said.

Asian countries also have a long way to go toward smoothing
out disparities in financial sector regulation, Rubin said.

In order for countries to realize the potential of pan-Asian
banking, "countries in this region must find a way to work
together to harmonize their regulatory systems," he said.

New York-based Citigroup has some 100 million customers
including consumers, corporations, governments and institutions
in 100 countries.

The company provides a range of financial services, including
consumer banking and credit, corporate and investment banking,
insurance, securities brokerage and asset management.