Citi to Shut China Private Banking: Report

Citigroup's board, meanwhile, agreed to a deal in principle to sell its Smith Barney brokerage to Morgan Stanley, a report says.
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Citigroup

(C) - Get Report

will close its private banking unit in China, and fold the operations into its consumer banking arm as it streamlines its businesses,

Reuters

reports, citing sources familiar with the situation.

Citigroup declined to comment on the restructuring plan but said it would continue to offer private banking services. "Citi remains entirely committed to the private banking space in China, and we will continue to invest in it," the bank said in a statement, according to

Reuters

.

The closure of the unit comes as news broke earlier this week that the bank was close to selling its Smith Barney brokerage to

Morgan Stanley

(MS) - Get Report

.

The Wall Street Journal

reports that Citigroup's board on Monday agreed to the deal in principle, and that an announcement of the deal could be made Tuesday. It wasn't clear if Morgan Stanley's board has formally endorsed the transaction, the

Journal

reports.

This article was written by a staff member of TheStreet.com.