Pennsylvania House Committee Defeats 'Citicorp Amendment'
Newman, A. Joseph, Jr., American Banker
Pennsylvania House Committee Defeats "Citicorp Amendment'
A proposal by Citicorp to make new investments of $1 billion in Pennsylvania in return for being allowed to set up shop here suffered an initial defeat on Tuesday in the Pennsylvania House business and commerce committee.
But Rep. Fred Taylor, D-Uniontown, the committee chairman who supported the so-called Citicorp amendment, vowed to bring it up on the floor of the state House, perhaps in a slightly different form.
The committee rejected the amendment, 21-3. The committee also turned down a proposal to include New York State in Pennsylvania's proposed reciprocity region.
Harry Tomlinson, Citicorp vice president in charge of consumer banking in Pennsylvania, said he was very disappointed. "We still would like to do a banking business in Pennsylvania,' he said. He told the American Banker that Citicorp wants "to give the legislators a chance to think [about the proposal] and work out a way acceptable to them and to us.'
The amendment was to a bill passed in January by the state Senate. It offers regional reciprocity to seven other states and the District of Columbia but not New York State. It has a five-year national trigger.
In addition to the $1 billion in new investments, Citicorp promised to create 200 new bank jobs in three years. Half of the $1 billion would be allocated to 13 high-unemployment counties.
The proposed amendment would cover other out-of-state banking companies that could meet similar job and investment guidelines.
Rep. Taylor, the committee chairman, said that "four or five' other large banking companies entering Pennsylvania either via acquisition or do novo would result in "$4 billion or $5 billion [in total investment] at no cost to the taxpayer.'
Calling the plan "a golden opportunity,' Mr. Taylor said, "We must get a new infusion of money into the state. …