WASHINGTON - TROUBLED US banking giant Citigroup said on Tuesday it is 'in discussions' with Morgan Stanley on a potential tie-up of the brokerage operations of the two firms.
Citi confirmed reports that had been circulating since Friday on the talks that could combine its Smith Barney unit and the wealth management business operated by Morgan Stanley.
'No definitive agreement has been reached, and no assurance can be given that any such agreement will be reached,' Citigroup said.
News of the talks had sparked fears that Citi, which has received a total of 45 billion (S$97.7 billion) in capital injections from the US Treasury to shore up its finances, was in deeper troubled than expected.
A joint venture of the two firms would create the world's biggest brokerage, according to news reports. -- AFP
