Smith Barney

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Felony Charges Dropped in Hit-and-Run...

...so that a Morgan Stanley wealth manager can keep job

(Newser) - Prosecutors in Colorado want Martin Joel Erzinger to keep his job as a financial manager to the ultra-wealthy—so they dropped felony charges against him in a hit-and-run case. Erzinger, 52, will instead face two misdemeanor charges for allegedly hitting bicyclist Dr. Steven Milo on July 3 and then fleeing... More »

Citigroup Paid Employees $13M for Scrapped Resort Trip

Bahamas trip for top performers was nixed after spotlight put on bank's spending

(Newser) - Citigroup employees whose jaunts to the Bahamas were canceled amid scrutiny of the bailed-out bank's spending were paid $13 million in compensation for the scrapped getaway, insiders tell Bloomberg. Sales agents—all 1900 of them—who had been scheduled to stay at a swanky resort were paid $5,000 each,... More »

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

Still smarting from bad mortgage bets, the company will split to remain solvent

(Newser) - Citigroup lost $8.29 billion in the fourth quarter—twice as much as expected—as the credit crisis continues to batter big banks, Bloomberg reports. The bank suffered a net loss of $1.72 per share, falling far short of analysts’ estimates. Citigroup, which lost 77 percent of its trading... More »

Citi to Shrink by a Third— Back to Pre-Merger Size

(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.... More »

Citi, Morgan Stanley Merge Brokerages

(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... More »

Stockbrokers in High Demand on Back-to-Basics Wall St.

Some, unlike disgraced investment bankers and traders, even command bonuses

(Newser) - With investment bankers and trading desks disgraced by crippling losses, the everyday stockbroker is enjoying a renaissance as Wall Street firms look to stay relevant to customers and investors, the Wall Street Journal reports. The likely deal between Morgan Stanley and Citigroup that would create the world’s largest brokerage... More »

Stocks Edge Down Ahead of Earnings

Dow off 50 in early trading; first reports due late today

(Newser) - Stocks moved lower at today’s open as traders held their collective breath ahead of what’s expected to be a dismal earning season, the Wall Street Journal reports. The Dow was down 50 points recently, to 8,548, while the S&P and Nasdaq dipped 0.95% and 0.... More »

Morgan Stanley Near $3B Deal for Smith Barney

The joint venture would create the world's largest retail brokerage

(Newser) - Morgan Stanley is close to a deal giving it control of Citgroup’s Smith Barney business and creating the world’s largest retail brokerage, reports Reuters. The joint venture would give Morgan 51% of Smith Barney for up to $3 billion. In addition to the cash, Citi would benefit from... More »

Citigroup Will Pay $33M to Settle Gender-Bias Suit

Bank plans to change infrastructure as result of action brought by 2,500 women

(Newser) - Citigroup will pay $33 million to some 2,500 female brokers to settle a gender-discrimination lawsuit brought by women at its Smith Barney unit, Reuters reports. The bank will also make operational changes in response to the class-action move, adding diversity-watchdog positions, working to retain and promote female workers and... More »

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