STEVE INSKEEP, Host: The deal involves Citigroup combining its brokerage operation with the brokerage of rival Morgan Stanley. Morgan Stanley would pay Citigroup $2 to $3 billion. If that combination were to go through, Morgan Stanley would have a controlling stake in a new operation that could be the largest retail brokerage in the world.
The troubled banking giant Citigroup is under pressure to shore up its finances — especially after taking billions in government rescue money. In recent days, Citigroup reportedly has been working on a deal to bring in billions more of much-needed capital. The deal is said to involve Citigroup combining its brokerage with rival Morgan Stanley. If the deal goes through, Morgan Stanley would have a controlling stake in a new operation that could be the largest retail brokerage in the world.