Citi calls crisis meeting as shares slump
Citigroup is pondering selling itself to a rival bank as senior executives look for ways of securing its future following a dramatic dive in value this week.
Chief Executive Vikram Pandit has called a conference call meeting for this afternoon to try and thrash out a solution to the bank's worsening financial position.
Citigroup's stock plunged 26 per cent yesterday, its worst ever one-day fall, and is down almost 50 per cent this week alone.
It casts further concern over the future of staff employed at Citigroup's European headquarters in Canada Square. The bank has already announced it will be shedding up to 1,500 jobs in London.
Today's meeting will explore contingency plans, which include putting the entire operation up for sale or selling off parts of the business to raise capital.
A merger remains a strong possibility, with Goldman Sachs and fellow-Wharfers Morgan Stanley mooted as potential partners.
In September Citigroup tried to buy Wachovia to deepen its deposit pool and offload some risky assets. But before the deal could be finalised Wells Fargo stepped in with a higher bid to snatch the bank from under Citigroup noses.
Citigroup have since been in negotiations to acquire Chevy Chase Bank but faces stiff competition from rival institutions.
But the bank was toughing it out, claiming it has sufficient capital to ride out its current crisis.
An official statement said: "Citi has a very strong capital and liquidity position and a unique global franchise. We are focused on executing our strategy, including our targeted expense and legacy asset reductions, and we believe the benefits will be seen over time."
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