Former US Treasury secretary, Robert Rubin, has quit his role as senior counselor at Citigroup amid advanced talks of a possible sell-out of its brokerage arm, Smith Barney, to rival Morgan Stanley, The Financial Times reports. Citi says Rubin, who ran Goldman Sachs before joining the Clinton administration, wanted to devote more time to public policy issues.
The two companies are in talks over merging their respective brokerage arms into a joint venture controlled by Morgan Stanley. Under the terms of the deal being discussed, Morgan Stanley will take a 51% stake in Smith Barney and an option to buy the remainder in three to five years.
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