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Citigroup is 'considering sale' | Citigroup is 'considering sale' |
(about 2 hours later) | |
Citigroup, one of America's biggest banks, is considering selling parts of the company, according to reports in the Wall Street Journal. | Citigroup, one of America's biggest banks, is considering selling parts of the company, according to reports in the Wall Street Journal. |
It is even rumoured to be considering merging with another bank. | It is even rumoured to be considering merging with another bank. |
Citigroup's shares have lost half of their value this week as concerns about its financial viability grow. | Citigroup's shares have lost half of their value this week as concerns about its financial viability grow. |
Saudi Prince Al-Waleed Bin Talal's decision to buy about $350m (£236m) of its shares on Thursday did not calm investors' nerves. | Saudi Prince Al-Waleed Bin Talal's decision to buy about $350m (£236m) of its shares on Thursday did not calm investors' nerves. |
Citigroup shares continued their downward slide, losing more than a quarter of their value on Thursday. Investors are worried that future losses could threaten the bank's future. | Citigroup shares continued their downward slide, losing more than a quarter of their value on Thursday. Investors are worried that future losses could threaten the bank's future. |
Despite this, officials have said the company has "ample capital, funding and strategic direction". | Despite this, officials have said the company has "ample capital, funding and strategic direction". |
Cuts | Cuts |
Citigroup has lost more than $20bn in the past year because of the global financial crisis. | Citigroup has lost more than $20bn in the past year because of the global financial crisis. |
Earlier this week, the bank announced plans to make 52,000 new job cuts in addition to the 23,000 cuts already made this year. | Earlier this week, the bank announced plans to make 52,000 new job cuts in addition to the 23,000 cuts already made this year. |
The 75,000 job cuts represent a reduction of about 20% of its staff. | The 75,000 job cuts represent a reduction of about 20% of its staff. |
Despite the sweeping job losses, the bank has maintained that its underlying business "remains strong and revenues have been stable". | Despite the sweeping job losses, the bank has maintained that its underlying business "remains strong and revenues have been stable". |
Other financial services companies will cut jobs in the near future according to Brian Sullivan, chief executive officer of executive search firm CTPartners. | |
"The bloodletting in the financial-services industry will accelerate in coming months, with job cuts doubling to about 350,000 worldwide by mid-2009," said Mr Sullivan. This figure is equivalent to 20% of the global workforce at financial companies before the credit crisis began, he said. | |
Meanwhile, Citigroup's chief executive, Vikram Pandit, has come under increasing pressure from critics who doubt his ability to turn around the company and survive the financial crisis. | Meanwhile, Citigroup's chief executive, Vikram Pandit, has come under increasing pressure from critics who doubt his ability to turn around the company and survive the financial crisis. |
The bank has reported four straight quarterly losses and some analysts believe the bank will not return to profitability until 2010. | The bank has reported four straight quarterly losses and some analysts believe the bank will not return to profitability until 2010. |
It is one of nine financial institutions receiving funds from the US government's bail-out programme. | It is one of nine financial institutions receiving funds from the US government's bail-out programme. |