The Full Wiki

Smith Barney: Wikis

Advertisements

Note: Many of our articles have direct quotes from sources you can cite, within the Wikipedia article! This article doesn't yet, but we're working on it! See more info or our list of citable articles.

Encyclopedia

(Redirected to Morgan Stanley Smith Barney article)

From Wikipedia, the free encyclopedia

Morgan Stanley Smith Barney
Type LLC (Morgan Stanley - 51% ownership, Citigroup - 49%)
Founded 1873
Founder(s) Charles D. Barney
Edward B. Smith
Headquarters New York City, New York, USA
Area served Worldwide
Key people James P. Gorman, Chairman
Charles Johnston, President
Industry Finance and Insurance
Products Brokerage
Investment Banking
Asset Management
Revenue $10.5 Billion USD 2007
Net income $1.4 Billion USD 2007
Employees 14,858
Website www.morganstanleysmithbarney.com

Morgan Stanley Smith Barney[1] is a joint venture company between Morgan Stanley and Citigroup.

On January 13, 2009, Morgan Stanley and Citigroup announced that Citigroup would sell 51% of Smith Barney to Morgan Stanley, creating Morgan Stanley Smith Barney, which was formerly a division of Citigroup Capital Markets. The combined brokerage house has about 18,500 brokers and manages $1.7 trillion in client assets. Clients range from individual investors to small- and mid-sized businesses, as well as large corporations, non-profit organizations and family foundations.

Contents

History

Smith Barney & Co. was formed in 1938 through the merger of Charles D. Barney & Co., founded in 1873, and Edward B. Smith & Co., founded in 1892. In 1975 Smith Barney merged with Harris, Upham & Co. to form Smith Barney, Harris Upham & Co., which, in 1977, was placed under SBHU Holdings, a holding company. In 1982, SBHU Holdings was renamed Smith Barney Inc.[2]

In the late 1980s the retail brokerage firm Smith Barney was owned by Sanford I. Weill's Primerica Corporation. Commercial Credit purchased Primerica in 1988, for $1.5 billion. In 1992, they paid $722 million to buy a 27 percent share of Travelers Insurance and in 1993 acquired Shearson from American Express. By the end of 1993, the merged company was known as Travelers Group Inc. although the brokerage business continued to operate under the Smith Barney brand.

In September 1997, Travelers acquired Salomon Inc. (parent company of Salomon Brothers Inc.), for over $9 billion in stock, and merged it with its own investment arm to create Salomon Smith Barney. In April 1998 Travelers Group announced an agreement to undertake a $76 billion merger between Travelers and Citicorp, creating Citigroup, which at the time of the merger was the largest single financial services company in the world.

Advertisements

Sale to Morgan Stanley

During the major financial crisis beginning in late 2008, Citigroup started losing major money from its investment banking divisions and others and had to be rescued by the US federal government. They decided to sell or close most of the divisions and areas in order to raise money and decrease losses. On January 13, 2009, Morgan Stanley and Citigroup announced the merger of Smith Barney with Morgan Stanley's Global Wealth Management Group, with Morgan Stanley paying US$2.7 billion cash upfront to Citigroup for a 51 percent stake in the joint venture. The joint venture operates under the name "Morgan Stanley Smith Barney."[3] Morgan Stanley itself was in a financially cash-strapped position like Citigroup during that time, but they were helped by US $9 billion dollar investment from Mitsubishi UFJ Financial Group for a 21% stake in Morgan Stanley.

On June 1, 2009 Morgan Stanley and Citigroup Inc. announced they closed early on the launch of their joint venture that combines Morgan Stanley's wealth management unit (including many former Dean Witter assets) with Citi's Smith Barney brokerage division. The new venture, called Morgan Stanley Smith Barney, was supposed to launch during the third quarter. The combined entity generates about $14 billion in net revenue, has 18,500 financial advisers, 1,000 locations worldwide and service about 6.8 million households.[4]

Citigroup disclosed on September 17, 2009 they would sell their remaining shares in the group to partner Morgan Stanley.[5]

Acclamation

BusinessWeek ranks Smith Barney No. 1 in customer service among full-service brokerage firms.[6]

References

External links


Smith Barney
Type Subsidiary of Citigroup
Founded 1873
Founder(s) Charles D. Barney
Edward B. Smith
Headquarters New York, USA
Key people Charles Johnston President
Industry Finance and Insurance
Products Brokerage
Investment Banking
Asset Management
Revenue $10.5 Billion USD 2007
Net income $1.4 Billion USD 2007
Employees 14,858
Website www.smithbarney.com

Smith Barney also known as Morgan Stanley Smith Barney[1] was a division of Citigroup Global Capital Markets Inc.. On January 13, 2009, Morgan Stanley and Citigroup announced that Citigroup would sell 51% of Smith Barney to Morgan Stanley, creating Morgan Stanley Smith Barney. The combined brokerage house has about 18,500 brokers and manages $1.7 trillion in client assets. Clients range from individual investors to small- and mid-sized businesses, as well as large corporations, non-profit organizations and family foundations.

Contents

Origins

Smith Barney & Co. was formed in 1938 through the merger of Charles D. Barney & Co., founded in 1873, and Edward B. Smith & Co., founded in 1892. In 1975 Smith Barney merged with Harris, Upham & Co. to form Smith Barney, Harris Upham & Co., which, in 1977, was placed under SBHU Holdings, a holding company. In 1982, SBHU Holdings was renamed Smith Barney Inc.[2]

In the late 1980s the retail brokerage firm Smith Barney was owned by Primerica Financial Services. Commercial Credit purchased Primerica in 1988, for $1.5 billion. In 1992, they paid $722 million to buy a 27 percent share of Travelers Insurance. By the end of 1993, the merged company was known as Travelers Group Inc. In September 1997, Travelers acquired Salomon Inc. (parent company of Salomon Brothers Inc.), for over $9 billion in stock, and merged it with its own investment arm to create Salomon Smith Barney.Template:Clarify me

In April 1998 Travelers Group announced an agreement to undertake a $76 billion merger between Travelers and Citicorp, creating the largest single financial services company in the world. It now has over one trillion U.S. dollars in assets.

On January 13, 2009, Morgan Stanley and Citigroup announced the merger of Smith Barney with Morgan Stanley's Global Wealth Management Group, with Morgan Stanley paying US$2.7 billion cash upfront to Citigroup for a 51 percent stake in the joint venture. The joint venture operates under the name Morgan Stanley Smith Barney.[3]

On June 1, 2009 Morgan Stanley and Citigroup Inc. announced they closed early on the launch of their joint venture that combines Morgan Stanley's wealth management unit (including many former Dean Witter assets) with Citi's Smith Barney brokerage division. The new venture, called Morgan Stanley Smith Barney, was supposed to launch during the third quarter. The combined entity generates about $14 billion in net revenue, has 18,500 financial advisers, 1,000 locations worldwide and service about 6.8 million households.[4]

Acclamation

BusinessWeek ranks Smith Barney No. 1 in customer service among full-service brokerage firms.[5]

References

  1. Morgan Stanley (January 13, 2009). Morgan Stanley and Citi To Form Industry-Leading Wealth Management Business Through Joint Venture. Press release. http://www.morganstanley.com/about/press/articles/af3e409a-e1b7-11dd-84e6-b390c77322d3.html. Retrieved on 2009-06-11. 
  2. Grant, Tina (ed.) (1996) International Directory of Company Histories‎ (volume 14) St. James Press, Detroit, p. 464, ISBN 1-55862-218-7
  3. "Morgan Stanley and Citi to Form Industry-Leading Wealth Management Business Through Joint Venture". Citigroup. 13 January 2009. http://www.citigroup.com/citi/press/2009/090113c.pdf. Retrieved on 13 January 2009. 
  4. BusinessWeek
  5. Awards

External links


Advertisements






Got something to say? Make a comment.
Your name
Your email address
Message