Citigroup under pressure, the collapses again

The time has come choices for the former world number one Citigroup financial services whose share price has fallen by half in two days. Thursday, the Citigroup has yet collapsed with a plunge of 26.41% to 4.71 dollars, reaching in meeting its lowest level in 15 years. Wednesday, the title had unscrewed over 23%.

Citigroup includes the cost of persistent market rumors of its results. Many analysts anticipate further losses for the bank in the fourth quarter and next year. In the image of Deutsche Bank's view that Citi will post a loss of 30 cents per share in 2009 despite Monday announced the elimination of 52,000 jobs next year to return to 300,000 employees.

In its edition on Thursday evening, the Wall Street Journal (WSJ) reported that Citi executives are considering various scenarios of the worst, providing for the transfer of entire sections of the bank. Even its outright sale. These discussions are still at a very preliminary stage and does not mean that the Bank of New York made a cross on its strategy of independence, the economic newspaper said, citing people close to the case.

The board of Citigroup met Friday to discuss options at its disposition.La management has stated that it was maintaining its strategy of independence and was studying various savings measures and targeted divestments. But she ruled out dismantling the group. The U.S. Treasury said he closely followed the case.

The market capitalization of Citigroup is now lower with 25 billion just to grant the Treasury under the plan to support the financial system. The former world number one in finance weighs less traded regional bank that U.S. Bancorp, with assets less nine times.

"Citigroup has caused many doubts among investors in a few days," says Volokhine Gregori, an analyst at Meeschaert New York, recalling the flurry of announcements in the bank since Monday: elimination of 50,000 jobs, repatriation of $ 18 billion of Toxic assets in its accounts, strengthening capital of Prince al-Walid (which has seen its participation rise from less than 4% to 5%).

Among its assets to be sold include the Smith Barney subsidiary, which specializes in selling securities to individuals - but management would not be favorable, according to some sources - the "credit cards" or activity services to financial companies, one of the most dynamic group, according to the newspaper. Another possibility would be to sell or merge the group, for example with investment bankers Goldman Sachs or its rival Morgan Stanley, according to analyst speculation reported by the WSJ. According to press information, Citigroup and Morgan Stanley - which the current CEO of Citi, Vikram Pandit, was born - had briefly considered in the fall of such a rapprochement.

In anticipation of new, more concrete, the title Citi was first found a little color on Wall Street at the opening, before resuming the path of decline and even free fall with a decline of 19.96 % To 3.77 dollars. A fall in three days about 70%!