How well are things going at Citigroup?  So well that they can afford to get rid of control of their brokerage arm, Smith Barney for a mere $3b.  The deal would give Morgan Stanley 51% ownership of the unit, with an option to take over the rest in the next few years.  Things must be pretty fantastic at the secret Bandit hideout if they can just start shedding segments of the company like a snake changing skin.

Citigroup, which reported $20 billion of losses in the past four quarters, would get cash for its Smith Barney brokerage, while Morgan Stanley would get recurring fee revenue and more potential banking customers. The joint venture would employ about 22,000 advisers, compared with the approximately 20,000 at Bank of America after its purchase of Merrill Lynch & Co.

So that’s what it’s all about?  It’s a contest to see who has the biggest?  Really?  Interestingly enough, the $3b number currently being floated for 51% of Smith Barney only represents about 20% of its actual value.  If Citi is going to be having a fire sale, it would be polite to let everyone know.  Some of us might like to purchase other parts of the company at deep discounts.  I, for one, would love to pay $30 to have Sir Win come clean out my gutters.  There seem to be rumblings of Sir Win getting the boot from his position as chairman, so it’s not like his schedule’s getting any fuller.