and once more we get a to big to fail addition under the relaxed banking regulations
where is glass stegal when we need it
(Reuters) - Morgan Stanley and Citigroup Inc have agreed to value their brokerage joint venture at $13.5 billion, settling a months-long dispute that notches a victory for Morgan Stanley.
The figure is far lower than the value Citigroup had assigned to the Morgan Stanley Smith Barney business on its balance sheet, and as a result Citigroup will take a $2.9 billion non-cash charge against earnings in the third quarter.
Morgan Stanley Smith Barney is the biggest brokerage in the United States with nearly 17,000 financial advisers and $1.71 trillion in assets.
The two banks agreed to the joint venture in 2009 in the wake of the financial crisis. Morgan Stanley, the majority owner, had always expected to buy out Citigroup, but it was unclear how much it would have to pay.
"It was a bad transaction for Citi, but the market has known it was probably going to go against them for awhile, so at least it brings closure," said David Trone, a bank analyst with JMP Securities. "Sometimes you just want to sell something and you'll take whatever price you can get."
http://news.yahoo.com/ruling-values-morgan-stanley-citigroup-venture-13-5-134555912--sector.html
where is glass stegal when we need it
(Reuters) - Morgan Stanley and Citigroup Inc have agreed to value their brokerage joint venture at $13.5 billion, settling a months-long dispute that notches a victory for Morgan Stanley.
The figure is far lower than the value Citigroup had assigned to the Morgan Stanley Smith Barney business on its balance sheet, and as a result Citigroup will take a $2.9 billion non-cash charge against earnings in the third quarter.
Morgan Stanley Smith Barney is the biggest brokerage in the United States with nearly 17,000 financial advisers and $1.71 trillion in assets.
The two banks agreed to the joint venture in 2009 in the wake of the financial crisis. Morgan Stanley, the majority owner, had always expected to buy out Citigroup, but it was unclear how much it would have to pay.
"It was a bad transaction for Citi, but the market has known it was probably going to go against them for awhile, so at least it brings closure," said David Trone, a bank analyst with JMP Securities. "Sometimes you just want to sell something and you'll take whatever price you can get."
http://news.yahoo.com/ruling-values-morgan-stanley-citigroup-venture-13-5-134555912--sector.html