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Thursday, September 17, 2009|
Citi's Chief Expects to Kiss Smith Barney Goodbye
It probably comes as no surprise to insiders in the brokerage and asset management industries, but it looks like Citi won't be sticking with the freshly formed Morgan Stanley Smith Barney wirehouse after all. The Wall Street Journal's Matthias Rieker reports that Citi CEO Vikram Pandit said he "anticipates" Morgan Stanley taking over Citi's 49 percent stake in MSSB.
Don't expect Pandit to give up complete control of the giant distributor too quickly. According to the $2.7 billion deal that closed June 1 to create the 18,500-plus-advisor wirehouse, "Citi will continue to own a significant stake in the joint venture at least through year five." So, Morgan Stanley may finish taking over MSSB ... in 2014 or so.
Printed from: MFWire.com/story.asp?s=22636
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