According to several market sources, Salomon Smith Barney is said to be in the process of starting its own ABCP conduit - distinct from Citibank's well-established conduit business - bringing to the fore the political squabbling often involved in having separately managed conduit and term ABS businesses within the same bank.

Market insiders familiar with the situation, while not shocked, seemed to think it was "a little odd" that Salomon made this decision, especially in light of the bank's recent push to bring the Citi and Salomon franchises closer together. However, sources postulated that since the 1998 merger, Salomon has wanted more control over its own clients and deals, which often must be approved by the conduit side. Neither Salomon nor Citibank returned calls on the subject.

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