Possible Citigroup and Morgan Stanley Merger in the Works following Massive Financial Losses
The banking behemoth Citigroup is one of the many financial giants making dire decisions following massive fiscal losses in the fourth quarter of 2008. In fact, the company is expecting losses well in excess of $20 billion for 2008 according to company officials. Many financial analysts and corporate insiders agree that the economic woes facing all companies is partly to blame, however, the large, extremely diversified, and global nature of Citigroup leaves many analysts believing the company is too large and too diversified to be managed effectively. With such massive losses, and more inevitably looming in the future, Citibank has taken interim measures of slashing divisions of its corporate structure, as well as potential selling entire divisions themselves, including their large retail brokerage outfit Smith Barney. In a more long term measure, however, insiders have consistently mentioned a merger or joint venture between Citibank and Morgan Stanley.
A joint venture, or merger, between Citibank and Morgan Stanley, alongside the already Citibank owned Morgan Stanley, would create a retail brokerage operation consisting of nearly 19,000 brokers. Not only would this union between Citibank and Morgan Stanley create a necessary flow of financing to the company, but also, Citibank would in turn hold one of the largest brokerage firms globally, besting well-known outfits such as Merrill Lynch. If your company or business is interested in a potential merger with another entity, the involvement of a corporate law attorney is a must. The experienced corporate lawyers with Reyes Law are more than aptly suited to counsel corporate clientele regarding any corporate law issue, including business mergers. Contact a corporate law attorney today!