FED ALLOWS CITICORP <CCI>, SEARS <S> THRIFT DEAL The Federal Reserve Board said it approved Citicorp's application to purchase through its subsidiary, Citicorp Savings of Oakland, Calif., some assets and assume some liabilities of Sears Savings Bank of Glendale, Calif. Citicorp Savings proposed to assume two billion dlrs in deposits and other liabilities and to purchase 1.9 billion dlrs in assets of 50 branch offices of Sears Savings. The proposal involved less than one third of the assets and liabilities of Sears Savings, owned by Sears, Roebuck and Co <S>. The Fed said that it generally has determined there were potentially adverse effects of allowing affiliations of banks and savings and loan associations, although it has allowed bank holding companies to acquire some failing thrifts. It said Citicorp's proposal "properly may be viewed as the permissible acquisition of certain assets and liabilities of S and L branches rather than the acquisition of an S and L." Citicorp Savings, the successor to the failed Fidelity Savings and Loan Association, has assets of 4.9 billion dlrs and operates 86 branches in California, mainly in the north. Sears Savings has 6.6 billion in assets and 91 branches predominantly in southern California. The application, which was approved unanimously, will not eliminate Sears Savings as a competitor, the Fed said.