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Citigroup Faces Smith Barney Hit

February 22, 2012

Citigroup is facing a potential multibillion-dollar write-down as it begins unwinding its minority investment in the Morgan Stanley Smith Barney brokerage.

Citigroup is facing a potential multibillion-dollar write-down as it begins unwinding its minority investment in the Morgan Stanley Smith Barney brokerage. Morgan Stanley has the right this spring to start buying Citigroup out of the joint venture, which was formed in 2009 when Citigroup's Smith Barney was combined with Morgan Stanley's wealth-management unit. Price is likely to be one of the main points under discussion when negotiations begin this spring, people familiar with the situation said.

Author: Wall Street Journal (02/22/12) Kapner, Suzanne

Source: "Citigroup Faces Smith Barney Hit"

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