Citigroup Sees $2.9 Billion Charge on Brokerage Venture’s Sale
Citigroup Inc. expects the sale of a stake in Morgan Stanley (MS) Smith Barney to result in a $2.9 billion charge in the third quarter.
The expense will be about $4.7 billion before taxes based on a $13.5 billion valuation of the brokerage unit, the New York-based lender said today in a regulatory filing. The sale of a 14 percent stake is expected to boost Citigroup’s Tier 1 common equity ratio under Basel III rules by about 0.14 percentage points.
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