Friday, November 21, 2008

Citigroup stock down again despite sales talk

Shares of Citigroup enjoyed a brief bounce Friday morning before heading lower once again, falling 16% despite reports that the beleaguered bank may be looking to raise more capital or even sell the whole firm.

Citigroup executives were set to meet Friday morning to discuss their options, including selling off pieces of the company or even the entire bank, both The Wall Street Journal and The New York Times reported late Thursday.

Calls to Citigroup (C, Fortune 500) to confirm the reports were not immediately returned.

It has been a rough week for the New York City-based bank. The company announced Monday that it would be cutting more than 50,000 workers.

The stock plunged 26% Thursday to $4.71, its lowest level in more than a decade, even though the bank's largest individual shareholder, Saudi Prince Alwaleed Bin Talal, said he would increase his stake in Citigroup to 5%.

On Friday morning, the stock sank below $4.

Citigroup has been one of the hardest hit financial firms since the mortgage market first started to unravel in the fall of 2007. Over the past four quarters, the company has recorded close to $21 billion in losses.

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