Smith Barney
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| Type | Merged with Morgan Stanley |
|---|---|
| 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.
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[edit] 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.[clarification needed]
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]
[edit] Acclamation
BusinessWeek ranks Smith Barney No. 1 in customer service among full-service brokerage firms.[5]
[edit] References
- ^ 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.
- ^ Grant, Tina (ed.) (1996) International Directory of Company Histories (volume 14) St. James Press, Detroit, p. 464, ISBN 1-55862-218-7
- ^ "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.
- ^ BusinessWeek
- ^ Awards
[edit] External links
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