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FBN's Charlie Gasparino on ex-Goldman Sachs employee Greg Smith's book deal and a potential Morgan Stanley, Citi Smith-Barney deal.
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It Morgan Stanley buying all of Citigroup's massive brokerage arm also known as Smith Barney telecast for his latest details the first Charlie interest.
Developments on a book deal waiting Greg Smith after his bashing on the.
-- -- client and by the way moments that broken by the exact number broken by the Fox Business Network vs and there's been other reports.
Obviously not is up to date is -- about the amount of money you might get yet slightly and cracked -- -- well -- there -- -- The million dollar number was used in these other reports but we have found and this is fascinate I got a lot of calls -- the yes they.
Who for some decided -- won't get into the -- can't get on top flight bite.
It's more than a million so this guy -- -- -- well listen they gave the least bit.
No he gets the -- sometimes you don't go with ice bid -- the bad guys that have resigned from Goldman Sachs very publicly.
-- -- New York so that everybody thought 15100 word article.
-- this -- is likely to make.
A million dollars above -- million dollars above a million that's happened to you.
It you don't break might write a book on it and -- when I get my million dollar.
Advanced I'm gonna come on the on talk about it so what you.
Come -- I just wanted object at home to my competitors more than a million dollars you heard it here on the fox is -- that -- first we don't know.
He's got -- -- all offers we don't know which when he's gonna -- sometimes you go to a lesser bid.
But it's more than a million dollars -- -- -- we got that -- a lot actor yes well those you know that's another story would be good writer now what he's like Michael Lewis and put together narrative that's a hold you to take a -- chance on that so.
Let's go to the credit himself and -- -- ghost writer.
I think.
Who else actually go to.
-- this is a pretty big story Morgan Stanley as you know.
Entity to deal what's with the with Citigroup during -- during the financial crisis with Citi had a sell assets to give them to build -- capital.
To -- its brokerage unit in this post -- phases they they currently mortgage -- -- currently owns 4051%.
There's 49% left.
They have an option to -- 14%.
But they we understand -- from sources inside Morgan Stanley.
They want to -- -- 49%.
We have heard from senior Morgan Stanley officials that the firm and James Gorman CEO.
Is consumed -- buying this remaining part.
We hear that if they do buy the remaining part people inside Morgan Stanley.
49% of Smith Barney.
At ten billion dollars that's a chunk of change and here's of the issue that Morgan Stanley as the face they need fed approval to buy the rest of the state.
The Fed we'll have to determine if Morgan Stanley has the adequate capital to buy the remaining 49% which they have not gone to the Fed yet we should point out.
That Morgan Stanley and this is kind of interest and still.
Despite all the noise you hear about this and the desire from with in to buy that 49% they want to do it they still.
Have not had quote unquote formal talks which Citigroup now Citigroup also must agree -- Is that -- not at this op and what they have what we know they've had is back channel communications what does that mean.
Vikram Pandit and James Gorman haven't set set set down.
The principles where they're ready to draw the deal up whether whether we have lawyers in the room.
Have not that have as not happened but they have had back channel discussions what does it back channel discussions being.
Morgan Stanley says we'd like to -- the 49%.
Citigroup -- we understand want to sell it Citigroup as you should as you know is basically.
Selling parts of itself it's going to become old nurse you know if you can get any -- than this this that the monstrosity that is.
But -- important -- Operation at focus on other areas brokerage remember that's what they deal with small investors.
You know selling stocks bonds mutual funds you name it.
Brokerage is not into Citigroup plan so they clearly want to sell.
Morgan Stanley want to buy.
-- eyeball on the price of ten billion they need fed approval that is the big thing there's been reports of they have enough.
Tier one capital to do this they've written off some good will be on the deal so they can do it but you know listen.
You never say never the Fed is a fickle -- these days with these investment banks breakthrough stuff going on in New York Morgan Stanley like every firm -- some exposure to Europe not.
The -- and can disclose explosion a lot of people thought but they still the Fed approval is going to be something they need and they know that from an intricate stick.
And they would like Jane -- would look to buy this tomorrow I mean do I but I will say this.
We understand they are dead serious they are consumed with fines and the price came from what they -- -- same side.
And -- -- pretty big deal there's -- folks I think again Charlie Charlie Gasparino the back thank you.
