Is Citi for sale?
After losing $83 billion dollars, with another $10 billion loss coming this quarter, having the taxpayer backstop $250 billion of loans, and $40 billion of taxpayer money, now Citi sells Smith Barney to Morgan Stanley to create CitiMorg.
The sale, of which Citi will get $2.5 billion of cash, will free up capital ($10 billion) with the new valuation given to Smith Barney. But why sell Smith Barney? Isn't this one of Citi's jewels?
Unless Citi is just being carved up.
Heck, why don't they just give the backstopped loans and anything else with a Government guarantee to Goldman Sachs and quit this charade?
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