Lisa Chow
Lisa Chow is the economics reporter at WNYC. She tries to explore in her stories surprising aspects of New York’s many economies—in plain view or hidden, in neighborhoods or sectors.
Morgan Stanley Reaches Deal With Citigroup
Wednesday, January 14, 2009
New York, NY –
Citigroup and Morgan Stanley have agreed to combine their brokerages. Morgan Stanley is paying Citigroup $2.7 billion for a 51 percent stake in the joint venture. New York University Stern Professor Larry White says it's a deal that shows how much Citigroup wants to slim down and build up cash.
WHITE: This is one of the things that Citi has to do -- buying itself time, disposing of assets, trying to strengthen itself.
REPORTER: Citigroup's retail brokerage, Smith Barney, was once the crown jewel in its wealth management business. The new unit, to be called Morgan Stanley Smith Barney, will have more than 20,000 advisors, $1.7 trillion in client assets, and serve nearly 7 million households around the world.
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