Citigroup Considers Merging Or Selling Itself

After another brutal day on Wall Street, Citigroup’s (C) board of directors frustrated and befuddled by bank’s 50% stock slide this week - is currently evaluating the firm’s shaky market position and weighing, according to The Wall Street Journal, the possibility of merging with another firm, auctioning off parts of the co. or selling it outright.

So far discussions regarding the firm’s options have been internal where a range of scenarios that were unthinkable only weeks ago are being considered. Citi’s execs insist that the New York-based bank has ample capital and a sound strategic direction. The reality however, is that the firm’s shares cratered more than 26% Thursday, its worst one-day percentage decline ever, raising serious concerns about the bank’s capital position.

The speculation comes close on the heels of an announcement by Saudi prince Alwaleed bin Talal bin Abdulaziz who plans to boost his stake in the bank to 5%. His holdings are currently less than 4%. The bank’s board is reportedly meeting on Friday to discuss the options.

So far this year, Citigroup stock is down 83%.

Subscribe by RSS Subscribe by Email