NEW YORK (AP) — Morgan Stanley and Citigroup have settled a dispute over the value of the brokerage firm Morgan Stanley Smith Barney, which they jointly own.
The deal clears the way for Morgan Stanley to buy Citigroup's 49 percent interest in the broker, giving Morgan Stanley full ownership.
Morgan Stanley will purchase Citi's interest in Smith Barney in stages, starting with a 14 percent stake. It will buy the rest by June 1, 2015. The deal values Smith Barney at $13.5 billion.
The agreement ends a tussle over the valuation of Smith Barney. Both banks hired a third-party appraisal process at the end of August.
Morgan Stanley bought 51 percent of Smith Barney from Citi during the height of the financial crisis in January 2009.