Citigroup Faces Multibillion Dollar Smith Barney Write-down
Citigroup faces a potential multibillion dollar write-down on its minority equity stake in Morgan Stanley Smith Barney, an asset management business.
According to the Wall Street Journal, the venture between Citigroup and Morgan Stanley began in 2009, when the sides combined Citigroup’s Smith Barney with Morgan Stanley’s wealth-management unit.
Morgan Stanley has the right to start buying Citigroup out this spring and is expected to take full ownership in 2014.
