Morgan Stanley and Citi Launch JV

Morgan Stanley and Citi announced the closing of their Morgan Stanley Smith Barney joint venture.

Originally targeted for the third quarter of 2009, the closing was achieved ahead of schedule.

As previously announced, Morgan Stanley Smith Barney combines Morgan Stanley's Global Wealth Management Group with Citi's Smith Barney in the U.S., Quilter in the UK, and Smith Barney Australia retail units into a new wealth management firm with over 130 years of experience.

According to the group, leveraging the combined strengths of two global brands in wealth management, the new Morgan Stanley Smith Barney features:

- Over 18,500 financial advisors, including 33 of the top 100 financial advisors on the Barron's 2009 "Top Advisors" survey

- 6.8 million client households globally, with a presence in the high-net-worth client segment

- Approximately $14 billion in pro forma net revenues

- 1,000 brokerage locations around the world, including in the U.S., Latin America, Europe/Middle East and Asia

"Morgan Stanley Smith Barney perfectly complements Morgan Stanley's traditional leadership position in the global institutional markets," said John Mack, Chairman and CEO of Morgan Stanley. "It is a clear industry leader that will be the premier choice for clients and high-quality financial advisors around the world, who will benefit from an unrivaled global platform, a vast array of products and services and the powerful intellectual capital that both firms bring to this venture."

"Today's closing marks another step in the execution of the Citi Holdings strategy. One important goal for Citi Holdings is to optimize the value to Citi shareholders through value-enhancing disposition and combination opportunities. We believe this transaction is consistent with that goal," said Vikram Pandit, Chief Executive Officer of Citi. "Citi benefits from this transaction by monetizing its investment in its wealth management business, while continuing to benefit from a multi-year earnings stream created by the larger firm."

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