Citi Stock Drops To Lowest Level Since Bailout

Jan. 13 (Bloomberg) -- Citigroup Inc. fell to the lowest level in New York trading since November, when the government provided a $20 billion rescue package, on speculation the bank will sell control of its brokerage amid mounting losses.

Citigroup declined 21 cents, or 3.8 percent, to $5.39 at 10:40 a.m. in New York Stock Exchange composite trading, after falling as low as $5.06. The shares plunged 17 percent yesterday and lost more than three-quarters of their value last year.

The bank today confirmed it's in discussions to combine Smith Barney with Morgan Stanley's wealth-management business, and said no agreement has been reached. For the past decade, the unit has been at the center of management's plan to provide bond- underwriting, savings accounts and investment advice under a single umbrella.

Read the whole story here.

Comments

[readmewell22]

Bush had his so called final goodbye press conference right?
And another 2nd so called final goodbye, now called a farewell on Thursday right?
Well?

[Hank10303]

Let me get this right - Paulson insisted that City bank and other take part in the $350 billion that was up for grabs to help energize the economy. Citi bank took the funds, raised interests rates on all its credit accounts, purchased two smaller banks and now they are buying a majority interest in a brokerage firm - so that's how much 25 billion can get you. Now, that Citi seems to be able to go around buying things can they pay us back

[drymartini1]

you got it in reverse dude !! Citi is selling majority stake in its brokerage firm to raise cash. the buyer is morgan stanley.