Morgan Stanley Likely Shopping for a Merger

(NEWSER) - Rumors of Citigroup’s plan to merge its brokerage unit with that of Morgan Stanley have proven true, as both companies’ boards approved the move today, CNBC reports. Morgan Stanley will control 51% of the joint venture between its operation and Citi’s Smith Barney. Observers see Stanley’s option to increase its stake later as a sign that Citi will eventually leave the brokerage business entirely. More»

Wachovia still a player as rising shares gives firms more time to think

(NEWSER) - Morgan Stanley presses on with merger negotiations, but the beginning of a recovery in financial markets today means the bank will have more time to weigh options, Reuters reports. Talks continue with Wachovia and China Investment Corp., among others, but the firm "feels that it can slow down the timetable” in order to make the right choice, a source said. More»

They say takeover violated investors' fifth amendment rights

(NEWSER) - Former AIG CEO Hank Greenberg is suing the US government for $25 million for having the effrontery to bail out the dying insurer. Greenberg was ousted in 2005 after allegedly cooking AIG’s books to inflate its value, but still had a keen interest in the company during the bailout, because his firm, Starr International Co., was its largest shareholder. Now Greenberg’s saying that the bailout of the firm violated shareholders’ constitutional rights, the Wall Street Journal reports. More»

Given current market, they'll make $9 billion in small sale

(NEWSER) - The Treasury has decided to go through with a plan to sell 300 million AIG shares, despite recent blows to the nationalized insurer’s market price, sources tell the Wall Street Journal . Given the sagging demand, the government expects to make around $9 billion in the small offering, which is on the low end of the $7 billion to $25 billion it had hoped for. More»

US will eventually no longer own the company

(AP) - AIG said today it's reached a deal to repay billions of dollars it received during the credit crisis. The plan could return a profit to taxpayers who footed the bill for AIG's near collapse in September 2008 and will eventually remove the government as majority owner. AIG became a lightning rod for criticism over bailouts when it received a package worth as much as $180 billion from the government, which received an 80% stake in the company in return. More»