Bloomberg reports that Citi, negotiating the sale of a 14% stake in the brokerage to New York-based Morgan Stanley, could see its tangible book value decline by 2.5% as a result, Goldberg said yesterday in a note to clients. The charge would be more than double the third-quarter average profit estimate of $2.88bn by 13 analysts in a Bloomberg survey.
In the meantime, Reuters reports that Royal Bank of Scotland said on Tuesday its China chairman and chief executive has resigned from her post to pursue 'outside interests'.
Sherry Liu, a former JPMorgan banker who took up the post in April 2011, will remain with RBS in as an advisor, it said in a statement.
And Bloomberg reports that former Lehman Brothers Holdings Inc. Co-Chief Operating Officer Bradley H. Jack, arrested in Connecticut twice in less than a year on charges of prescription forgery, said he is willing to undergo a diversionary program for drug and alcohol treatment to avoid prosecution.
Jack applied for the program at a hearing Monday in Connecticut Superior Court in Norwalk. Judge Bruce Hudock ordered a doctor’s evaluation to determine if he is eligible for the new program, which the judge said would be 'a rare event'.
'If you are successful, your proceedings will be dismissed', Hudock told Jack at the hearing.
Finally, the news organisation report that a former UBS municipal-bond executive told an ex-colleague to forget about a transaction as they discussed how to handle an expanding government probe of bond bid rigging, the second man testified at trial.
Mark Zaino, who worked on the bond desk at UBS, told the federal court jury in Manhattan Monday that Gary Heinz, one of three defendants in the municipal bond big-rigging trial, told him to 'forget about' a transaction involving the Massachusetts Education Financing Authority. Zaino said he, Heinz and Michael Welty, a co-defendant, had rigged the bids for that deal.