Citi Posts $8.3B Loss, Prepares to Split in Two

(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»

Citi, BoA, Morgan Stanley CEOs jetted off after cash infusions

(NEWSER) - Executives at bailed-out banks are still using company jets to fly to vacation homes and resorts, the Wall Street Journal reports. The newspaper reviewed FAA records to find that banks receiving federal aid have flown top execs to locales such as the Caribbean, Aspen, and Europe. Case in point: Less than 2 weeks after getting $3.5 billion in TARP funds, the chief of Regions Financial Corp. in Alabama used two bank jets to fly his family to a four-day vacation at a resort in West Virginia. More»

Lawmakers say rescued banks should cooperate in auto rescue plan

(NEWSER) - Auto task force Steven Rattner's request that four big banks write off their $7 billion debt to Chrysler in return for nothing met with a big no from dropped jaws, reports the Washington Post. JPMorgan Chase, Morgan Stanley, Citigroup, and Goldman Sachs are seeking a better deal, but critics argue that the banks rescued by the government should now help the government rescue Chrysler. More»

Attempt to skirt new rules could anger shareholders

(NEWSER) - In a move to skirt government restrictions on executive pay for recipients of bailout cash, some Wall Street companies are discussing raising base salaries, the Journal reports. Citigroup and Morgan Stanley are considering the idea, which is gaining currency as regulators keep a watchful eye on bonuses, say industry insiders. Higher base salaries could actually help boost bonuses, typically a percentage of salary. More»

(NEWSER) - Say goodbye to the Citigroup empire. When the company releases its earnings next week, it'll also unveil a drastic plan to slice away businesses until it’s roughly two-thirds of its current size, the Wall Street Journal reports, and looks much like Citicorp did before the merger that created Citigroup. After ceding Smith Barney to Morgan Stanley and shedding or shrinking several other units, the new leaner Citi will cater to large corporations and rich people. More»