Citigroup has swapped its asset management division in exchange for Legg Mason brokers and stock. In the deal, which will close in the fourth quarter, Citigroup will receive Legg Mason's 1,354 brokers in 127 branch offices throughout 22 states, along with $1.5 billion in stock, or a 14% stake in Legg Mason.

The deal will make Legg Mason the fifth-largest money manager in the U.S., with a total of $830 billion in assets, and give Citigroup 14,000 financial advisers and private bankers.

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