Citigroup has completed its $3.7bn asset swap with Legg Mason. Citi swapped most of its asset management business for Legg's brokerage arm, and will book a $2.1bn gain in the fourth quarter from the transaction.
The British High Court judge, who is looking at whether three former NatWest bankers should be extradited to the US in connection with alleged offenses relating to the Enron affair, has questioned why the US government is intent on putting the bankers on trial over there. He told lawyers acting for the US Government that he did not 'understand why your client is interested in prosecuting these people if the losers were NatWest and not Enron'. The bankers, David Bermingham, Giles Derby and Gary Mulgrew, are alleged to have conspired with Enron officials to short-change NatWest on a deal.
Goldman Sachs has said that it is in the market to build up its asset management business by acquisition. The firm said that it would not walk away from a big deal if it seemed right for the business.
Just when Morgan Stanley staff thought that the firm was on an even-keel, two more senior executives are on their way out. Dhiren Shah, the global head of the firm's technology investment banking unit, is to leave for Greenhill & Co, where he will become a Managing Director. Shah, 45, will be based in New York. And Sir David Walker, Morgan Stanley's most senior executive in Europe, is to quit at the year-end. Walker, 65, said that he intends to stay on as a special adviser to the firm. He will be replaced as chairman of Morgan Stanley International by 44 year-old Jonathan Chenevix-Trench, who previously ran the firm's global interest rates and currency options business.
Finally, Societe Generale has launched a private banking business in Mumbai, India.