Citigroup Loses 27% Of Market Value

According to Yahoo Business news, Citigroup, "the second-largest U.S. bank by assets is looking at options now, including a sale of parts of the company or a merger with another firm, after its stock fell 50 percent this week, a person familiar with the matter said on Thursday."

Discussions so far have been internal, and some options --such as entering into a merger where other executives end up running the company -- are unpalatable to managers at Citigroup, the person said. The bank's board of directors is set to meet on Friday, and Morgan Stanley is not considering a possible bid, the Wall Street Journal reported.

Citigroup did not comment on the report, repeating that it has a "very strong capital and liquidity position" and is focused on a strategy that will generate benefits "over time." Morgan Stanley did not immediately return a call for comment.

Yesterday Prince Alwaleed bin Talal from Saudi Arabia, calling the C shares "dramatically undervalued," said he plans to increase his stake in Citigroup to 5 percent from less than 4 percent. He also expressed "full and complete support" for management, including Pandit, who said this week the bank will slash 52,000 jobs and 20 percent of expenses.

However, investors spoke and brought Citigroup's shares below $5, a level not seen since 1994.

Alfred Goldman comments on the midday market situation.

"Financial shares are under pressure, while retailers are showing some signs of life. Citigroup fell 57 cents to 4.14 after the bank's chief executive said he has no plans to break up the company. The comment came as the Citigroup board met in New York. JP Morgan fell 2.43 to 20.95 and hit a six-year low amid fresh concerns about the stability of the financial sector.

"Gap was up 1.77 at 11.27 after reiterating its profit forecast for the year. The market also reacted well to Wal-Mart's announcement of a new chief executive. Shares were up 1.11 at 51.77. The new chief advances from within the Wal-Mart ranks. Dell declined 45 cents to 9.39 as initial enthusiasm about the company's earnings report wore off. Dell reported better-than-expected profits, but revenues missed expectations.

"The NYSE was 4-3 negative on issues, 9-8 positive on volume. The Nasdaq was 16-9 negative on issues but 2-1 positive on volume. The 10-year Treasury note was down a point to yield 3.21%."

If you remember on Monday Citigroup said it will cut 53,000 jobs.