Citi - to sell ?

Citigroup, the beleaguered New York bank that is witnessing unprecedented sell-off in its shares, is reportedly considering selling off parts of the bank or the whole company, The Wall Street Journal (WSJ) reported online, citing people familiar with the matter.

Talks are preliminary and don’t suggest that Citi and management are backing down from their insistence that the New York company has sufficient capital, funding and strategic direction, the WSJ said. Citi's board is scheduled to have a formal meeting on Friday to discuss the options.

Citi shares declined US$1.69, or 26.4% to a 15-year low of US$4.71 on the New York Stock Exchange at 4:15 p.m. It has fallen 84% this year.

Earlier, Citi's largest shareholder, Saudi Prince Alwaleed Bin Talal, said that he was increasing his stake in the troubled bank back to 5% from 4%, even as shares continue to plummet.

Citi is also seeking to revive a prohibition on short-selling financial stocks, according to reports. The bank has discussed with the Securities and Exchange Commission (SEC) and lawmakers its proposal to reinstitute the ban on bets that stock prices will fall.

Citi has reported losses for four straight quarters, and has raised about US$75bn since December by selling assets and equity stakes, including a US$25bn injection from the US Treasury.

Citi has lost about US$20bn in the past four quarters as bad loans increased and demand for banking services declined. CEO Vikram Pandit said this week the company will cut 52,000 jobs in the next year to lower costs.