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Archive for Saturday, January 10, 2009

Citigroup, Morgan Stanley mull merger

January 10, 2009

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— Officials at the embattled banks Citigroup and Morgan Stanley will negotiate over the weekend about possibly combining their wealth management businesses, a deal mostly aimed at bolstering Citi with much-needed cash.

The deal to merge Citi’s Smith Barney with Morgan Stanley’s comparable division was confirmed late Friday by a person familiar with the talks, who spoke on condition of anonymity because he was not authorized to discuss the matter.

The negotiations come as investors digested news that Robert Rubin, a senior adviser to Citi who has drawn heavy criticism, would resign from the bank. The person said it was Rubin’s decision to leave Citigroup and that “there was no inside pressure,” or government pressure.

Comments

jmadison 5 years, 11 months ago

Robert Rubin reportedly received over $115 million in his tenure at Citigroup during which his advice helped drive the company into a government sponsored bailout to prevent insolvency.

womanwarrior 5 years, 11 months ago

That's the new American way, isn't it. Reward failure.

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