Citi Smith Barney Merges with Morgan Stanley

Citi Smith Barney was a leading global financial services company, but in 2009, it made a significant move by merging with Morgan Stanley.

The merger brought together two powerful financial institutions, creating a new entity that would shape the industry.

Citi Smith Barney's wealth management business was a key part of the merger, allowing Morgan Stanley to expand its global reach.

As a result of the merger, Morgan Stanley's wealth management business grew significantly, making it a major player in the industry.

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Morgan Stanley will purchase Citigroup's 49 percent interest in Smith Barney for $13.5 billion.

The deal values Smith Barney at $13.5 billion, which is a significant decrease from Citigroup's initial valuation of $22 billion.

Morgan Stanley will buy Citigroup's stake in Smith Barney in stages, starting with a 14 percent stake.

Morgan Stanley's CEO, James Gorman, is keen to up Morgan Stanley's stake in the brokerage at a time when the bank is struggling to make money.

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Regulatory changes have cut some of Morgan Stanley's more lucrative trading businesses.

Morgan Stanley reported a 37 percent drop in its investment banking revenue in the second quarter.

The agreement ends a tussle over the valuation of Smith Barney between Morgan Stanley and Citigroup.

Citi will receive $6.61 billion for its 49 percent stake in Smith Barney between now and June 2015.

Citi expects to record a non-cash GAAP charge to net income of approximately $2.9 billion after-tax in the third quarter.

Morgan Stanley paid $2.7 billion to Citi when the merger of the two firms took place in 2009.

The combination of Citigroup and Morgan Stanley's brokerage businesses will save about $1.1 billion.

The new partnership will have $1.7 trillion in assets to manage, more than 20,000 financial advisers and 1,000 offices worldwide.

Morgan Stanley's valuation of Smith Barney is about 40 percent of Citigroup's appraisal value.

Each company's stock rose after the agreement was announced, with Morgan Stanley rising 41 cents to $17.02 and Citi rising 84 cents to $32.67.

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Citigroup will receive $2.7 billion from Morgan Stanley for the majority of Smith Barney.

The banks expect to save about $1.1 billion from combining their businesses, which will likely result in layoffs in various support functions.

Citigroup has borrowed more than $45 billion from the government in rescue packages, and the bank is expected to sell off other units in the coming weeks, potentially leading to more job losses.

Morgan Stanley will control the new venture, Morgan Stanley Smith Barney, which will have 20,000 financial advisers and 1,000 offices worldwide.

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The company announced a delay in pricing, citing a need for more time to assess market conditions.

This delay is significant, as it will impact the launch timeline for the new product.

The original launch date was set for Q2, but due to the pricing delay, it's now expected to be pushed back to Q3.

This means that investors and customers will have to wait longer to see the product's pricing and availability.

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The company's CEO mentioned that they want to ensure the product is priced competitively, taking into account the current market trends.

A competitive pricing strategy is crucial for the product's success, and the company is willing to take the extra time to get it right.

The delay is likely to impact the company's revenue projections, but the exact impact is still unknown.

The company's financial team is working closely with the product development team to reassess the revenue projections and make necessary adjustments.

This delay is a setback, but it's also an opportunity for the company to refine its pricing strategy and increase the product's chances of success.

Morgan Stanley is buying a large stake in Smith Barney from Citigroup, a move that will help Citigroup cut costs and raise cash.

The deal values Smith Barney at $13.5 billion, a significant discount from Citigroup's initial valuation of around $22 billion.

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Morgan Stanley will purchase Citigroup's 49 percent interest in Smith Barney in stages, starting with a 14 percent stake by June 1, 2015.

Citigroup will receive $2.7 billion from Morgan Stanley for the majority of Smith Barney, which will help the bank offset its losses.

The combination of Morgan Stanley and Citigroup's brokerage businesses will save about $1.1 billion in costs.

Morgan Stanley's CEO, James Gorman, is keen to up the bank's stake in Smith Barney to improve its financial performance.

The new partnership will have $1.7 trillion in assets to manage, making it a significant player in the financial industry.

Morgan Stanley and Citigroup are combining their brokerage businesses, which will result in layoffs in various support functions.

The deal will help Citigroup raise cash and reduce its debt burden, which has been a major concern for the bank.

Morgan Stanley's purchase of Citigroup's stake in Smith Barney is a strategic move to improve its financial performance and reduce costs.