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Zardari appeals to world to diffuse indopak relation

Pakistan President Asif Ali Zardari on Saturday asked the international community to come forward and diffuse tensions between New Delhi and Islamabad.

Speaking at a dinner hosted for foreign envoys at the presidential palace, Zardari expressed concern that “prevailing Indo-Pak tensions could sabotage efforts being made for bringing stability and peace in the region.”

“The international community should take stock of the challenges being faced by Islamabad and the ground realities,” Zardari was quoted as saying by the Geo TV.

He also renewed the Pakistani Government’s stance that “no compromise could be made with terrorists”.

The envoys of India, the US, China, Britain, Russia and France were among those who attended the dinner besides Prime Minister Yousuf Raza Gilani.

However, Federal ministers, secretaries and senior officials were also present.

Zardari had recently hosted a dinner for the envoys of Muslim nations and Saturday’s dinner was hosted for envoys of other countries.

January 11, 2009 Posted by | Uncategorized | , , , , | Leave a comment

CITI may get $2billion for smith barney deal

Citigroup Inc is in advanced talks to sell its Smith Barney brokerage unit to Morgan Stanley, a person familiar with the matter said on Friday, in a move that would further dismantle the financial supermarket that has been bailed out by the U.S. government.Under the deal being discussed, the two banks would set up a joint venture. Morgan Stanley would control it with a 51 percent stake and expect to buy Citi’s 49 percent share over three to five years, the person said. Talks are “serious” and “advanced” but may still fall through. Both banks declined to comment.Separately, former U.S. Treasury Secretary Robert Rubin resigned immediately as a senior counselor to New York-based Citigroup, following months of criticism of his performance, as the bank’s sinking share price led to a government rescue. The 70-year-old Rubin will remain a director until the bank’s annual meeting later this year. He joined Citigroup in 1999.

A combined brokerage would have more than 23,000 financial advisers before attrition, ranking as the world’s largest retail brokerage, surpassing rivals Bank of America Corp and Wells Fargo & Co.Citigroup ended September with 14,735 brokers, and Morgan Stanley ended November with 8,426. Last week, Bank of America bought Merrill Lynch & Co, and Wells Fargo bought Wachovia.Citigroup could boost its capital levels by doing the deal, and Morgan Stanley could diversify its sources of revenue. The U.S. Federal Reserve is pressing the two banks to do a deal because of the potential benefits to both, CNBC reported on Friday.

Combining the two businesses could also help Morgan Stanley and Citigroup cut costs. Brokerages are expected to suffer this year as broad weakness in stock and bond markets globally weigh on trading volume.A joint venture would reestablish ties between Citigroup Chief Executive Vikram Pandit and Morgan Stanley, which he left in 2005 after being passed over for a promotion in favor of fixed-income chief Zoe Cruz. She had faulted Pandit for being unwilling to take enough risk.

Shedding Smith Barney would be the latest, and perhaps the boldest step in dismantling Sanford “Sandy” Weill’s original conception for Citigroup when his Travelers Group Inc bought Citicorp to create the world’s largest financial services conglomerate.Pandit is trying to shed hundreds of billions of dollars of assets and reduce risk after Citigroup suffered $20.3 billion of losses in the year ended Sept 30. The bank has taken $45 billion from the government’s Troubled Asset Relief Program, $20 billion of which came from a federal bailout in November that will also limit potential losses on some assets.

Placing the business in a joint venture would likely allow Citigroup to record an immediate accounting gain, boosting its capital. And the bank would still be able to receive revenue from the business.A brokerage venture could allow Morgan Stanley to diversify its revenue streams, fewer than four months after Chief Executive John Mack turned it into a bank holding company. Many traditionally strong businesses for Morgan Stanley, such as hedge fund prime brokerage and commodities trading, are expected to be less profitable in coming years than they were a few years ago.But the deal may not be entirely positive for Morgan Stanley. As it takes over Citigroup’s brokerage business, it might have to offer incentives for brokers to stay, potentially boosting costs. Morgan Stanley plans to reduce risk and become more aggressive in gathering deposits. It got $10 billion of TARP money

January 11, 2009 Posted by | global | , , , , | Leave a comment