BUSINESS

Forbes: Citi On Fire

02/13/2009 05:12 am ET | Updated May 25, 2011

Anxiety about the fate of Citigroup is growing.

Investors fear the company may need more assistance from the federal government to stay afloat, even after regulators organized a $20 billion bailout in November, including a guarantee of $300 billion in loans on Citi's books. That came in addition to the $25 billion in funds Citi received from the Treasury's Troubled Asset Relief Program in October.

The bank faces fourth-quarter losses in the neighborhood of $4 billion to $8 billion and another round of write-downs and loan loss reserves. Citi is negotiating with Morgan Stanley (nyse: MS - news - people ) to sell 51% or more of Smith Barney, which could bring in $2 billion to $3 billion in cash.

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