Although it presupposes the dismantling of the Depression-era Glass-Steagall Act separating banks and other financial institutions, the merger looks to be a pretty neat fit. "Travelers is the investment and insurance side, Citicorp is still mostly traditional banking," says FORTUNE writer Nelson Schwartz. "There's not a lot of overlap, so there shouldn't be a lot of layoffs." Investors are voting with their wallets: Citicorp's stock price was up 34 points (not a typo) after midday; Travelers jumped 10. Merrill Lynch, Lehman, DLJ? All up, having suddenly become attractive as future acquisitions (or aquisitors) in the light of the marriage.
Customers of the new company, dubbed Citigroup, will be able to shuffle money instantly between banking, money market, insurance and mutual fund accounts. And even get out a sawbuck for lunch.