Citigroup, Morgan Stanley merge brokerages

Citigroup and Morgan Stanley are combining their brokerages in a deal that shows how much Citigroup wants to slim down and build up cash.
   
Morgan Stanley is paying Citigroup $2.7 billion for a 51 percent stake in the joint venture.
   
Citigroup’s retail brokerage, Smith Barney, was once the crown jewel in its wealth management business.
   
Citigroup is expected to post a fifth straight quarterly loss next week. The government has already lent it $45 billion - more than other large banks received - and agreed to absorb losses on a huge pool of Citigroup mortgages and other assets.