Citigroup is facing a serious problem of breaking up as all the measure to rebuild investor confidence has failed to halt the credit crunch of the institution to a 15-year low. Citigroup Inc's board meets today to discuss the bank's options although the bank already seems to have run out of them.
The board , led by chairman Win Bischoff and independent director Richard Parsons, will meet at Citigroup's headquarters in New York. The panel could be deciding to sell some of the shares or may be entire, as reported by Wall Street Journal. The New York Times in its article said that management isn't actively considering a sale or split up of the bank.
"Investors right now aren't convinced that we're done seeing dead bodies on the Citigroup balance sheet," said William Fitzpatrick, an equity analyst at Optique Capital Management Inc. in Milwaukee, which oversees about $1 billion and doesn't own Citigroup shares. "That's what the sell-off is, concern over more and more losses over the next couple of quarters."
Citigroup, once the biggest U.S. bank, with a stock market value of $274 billion at the end of 2006, dropped yesterday to about $26 billion, slipping to No. 5 after Minneapolis-based U.S. Bancorp.
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