|
CNBC'S MOST SHARED
- Unemployed? Bored? Make Money Playing Beer Pong
- Social Networking's 'Naked' Truth
- The Highest Grossing (Inflation Adjusted) Movies of All Time
- WPP's Sir Martin Sorrell on the Ad Recession
- Merrill's McCann Seen as UBS Wealth Frontrunner
- Geek Squad V. Gizmodo
- Warren Buffett's Top Three Investment Rules for the Average American
- Why You Should Watch Fund Flows
- Roginsky: No More Mr. Nice Guy
- Stimulus Will Kick in Later this Year: President Obama
- Lender CIT Group Hires Premier Bankruptcy Adviser
- Government Selling Bank Stakes for Too Cheap: Panel
- Buffett's Top 3 Investment Rules for Average Americans
- Market Insider: Earnings Loom in the Week Ahead
- Bulls Get Summertime Blues, But It's Hot Fun for Bears
- As Banks Fail, Strong Institutions Become More Visible
- GM IPO in Second Quarter 2010 at the Earliest: CFO
- Merrill's McCann Seen as UBS Wealth Frontrunner
- Eric Schmidt on Government Scrutiny and Economic Recovery
- Market 360: The Week's Best & Worst
- Geek Squad V. Gizmodo
- Brandt: Google Chrome OS in the Post-PC Age
- Other People Are Weirder Than We Are
- Bank Failures: Is The Nightmare Over? (Video)
- California Here I Go? No.
- Roginsky: No More Mr. Nice Guy
- Commercial Conundrum
Text Size 
Citigroup and Morgan Stanley are working feverishly to complete a deal for a creating a joint venture out of Citi's Smith Barney brokerage unit and sources close to the deal say that barring a last minute hiccup there should be an announcement after today's closing bell.
The deal would provide a capital boost for Citigroup [C
Loading...
()
], the giant bank that owns Smith Barney. But it will also be the first step toward the break up of the massive investment bank, which is under pressure to raise capital to stem losses.
Citigroup is expected to announce another massive loss for its fourth quarter. Morgan Stanley [MS
Loading...
()
] has been ailing as well, albeit not as bad as Citigroup. This deal gives Morgan's new business model of providing advice to large companies and small investors a boost.
The firm will control 51% of the joint venture with the right to increase its share in future years. In effect Morgan Stanley would control the largest brokerage firm, with 18,000 financial advisers compared to the 16,000 at the Merrill Lynch subsidiary of Bank of America [BAC
Loading...
()
].
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes