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Journalism of Courage
Officials at the embattled banks Citigroup and Morgan Stanley will negotiate over the weekend about possibly combining their wealth management businesses,a deal mostly aimed at bolstering Citi with much-needed cash.
The deal to merge Citis Smith Barney with Morgan Stanleys comparable division was confirmed today by a person familiar with the talks,who spoke on condition of anonymity because he was not authorised to discuss the matter.
The negotiations come as investors digested news that Robert Rubin,a senior adviser to Citi who has drawn heavy criticism,would resign from the bank. The person said it was Rubins decision to leave Citigroup and that there was no inside pressure, or government pressure.
