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Citigroup In Danger of Total Collapse as it Enters Talks With Morgan Stanley

Written By David D'Angelo on Saturday, January 10, 2009 | 1/10/2009

Citigroup seems to be dwindling in total collapse and possible liquidation. It was perceived as they enter into discussions with Morgan Stanley about possibly combining their wealth management businesses, a deal mostly aimed at bolstering Citi with much-needed cash. Citi is one of the International Banks who had branches in various countries including the Philippines who had been affected by the current economic crisis which was triggered by the housing market downturn.

According to Yahoo News, the deal to merge Citi's Smith Barney with Morgan Stanley's comparable division was confirmed late Friday by a person familiar with the talks, who spoke on condition of anonymity because he was not authorized to discuss the matter.

The negotiations come as investors digested news that Robert Rubin, a senior adviser to Citi who has drawn heavy criticism, would resign from the bank. The person said it was Rubin's decision to leave Citigroup and that "there was no inside pressure," or government pressure.

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