BANKING & FINANCE - July 1, 1993

Citicorp Acknowledges $70-Million Accounting Error: The nation’s largest bank holding company told nearly 38,000 of its employees and retirees that it had overstated returns from the bank’s retirement plan by as much as $100,000 each. The miscalculation means participants in the New York-based bank’s Savings Incentive Plan earned less money than the amounts that appeared on their statements during the last seven years. Citicorp said the mistake affects more than $1 billion in the plan. Thousands of participants saw their balances adjusted downward when Citicorp corrected the mistake. Citicorp said, however, that it had tried to cushion the blow by making a voluntary contribution of $30 million during the first quarter of this year.