Citigroup May Seek Merger as Stock Plunges Further

[RedEarth]

Source: cnbc

Senior officials at Citigroup told CNBC that they will have to make a strategic change in the firm's direction, including finding a possible merger partner or raising cash in the coming days to arrest a sharp slide in the firm's stock price.

A Citigroup spokesman had no comment, but investment banking sources say possible partners could include Morgan Stanley , Goldman Sachs or State Street Bank . Both Goldman and Morgan have recently switched over to banking holding companies so they could collect deposits. But finding a possible partner would be difficult in an environment where every major firm is reeling from the credit crunch and has its own set of problems.

Who are the biggest owners of Citigroup?
Citigroup's stock plunged below $5 a share on Thursday for the first time in 13 years as investors questioned the banks ability to handle potential credit losses and writedowns in 2009. By falling below $5, many mutual funds and institutional investors -- in particular pension funds -- must unload shares of Citigroup to comply with investment guidelines.

The bank also has been reeling on concerns that mounting losses from credit cards, mortgages and toxic debt could overwhelm its efforts to slash costs and add deposits.



Read more: http://www.cnbc.com/id/27829103

[Double T]

1. Let 'em go under. Revenge for abuses to credit card holders is possible.

[Neshanic]

2. Hi, Your friendly Communist Chinese here. We understand you may need our help.

We are ready to buy....er...stand by to help in any way we can.

[Sherman A1]

3. Gosh,

I just got an email from them looking for depositors and telling me just how secure they are. Hmmmmm.......?

Got stuck with them holding my mortgage after they bought ABN Amro a year or so ago.

Lousy service in my opinion, but they love to call you and try to sell you all sorts of interesting things.