Citicorp’s move into insurance was thwarted.

The Federal Deposit Insurance Corp. rejected an application by the bank holding company to buy a South Dakota bank through which it planned to sell life and health insurance nationwide. The Federal Reserve Board, in issuing the denial, said that Citicorp was seeking to circumvent federal law, which prohibits banks from engaging in such activities as selling general insurance. Citicorp asked the board in June, 1983, for permission to acquire American State Bank of Rapid City, S.D.