[ by Melanie Gretchen ] Will Citi sell its remaining stake in Morgan Stanley Smith Barney to Morgan Stanley?  Will Morgan Stanley buy that stake?  Those are the questions. Citigroup's Q1 earnings report says maybe.  The bank currently holds a 49% stake in MSSB.  To date, the brokerage and asset-management arm of Citi Holdings that is essentially made up of MSSB lost $137 million in the quarter.  This compares with a loss of $12 million a year earlier, and $90 million to $100 million during the prior 3 quarters. The retail broker may still be turning a profit: those figures include funding-cost impacts tied to its stake, but the loss is visibly accelerating. Within its ranks, chances of Citi selling are mixed.  CFO John Gerspach has made it no secret that Citi wants out of the MSSB, which would make a deal to sell to Morgan Stanley imminent - [See Tuesday WHO posting , "Citigroup Tips Hand on Its Smith Barney Jt Venture Intentions"] .  CEO Vikram Pandit wasn't so fast to make a determination - or at least to express his preference.  He said Citi's capital level "suggests" it isn't under pressure to sell.    [WSJ, 4/16/12]