Chillin' out till it needs to be funded
Shares of Citigroup (C, Fortune 500) cratered 26%, extending the brutal losses from Wednesday, when the stock lost nearly a quarter of its value.
So far this year, Citigroup stock is down 83%.
The Wall Street Journal, citing sources familiar with the situation, reported Thursday night that Citi executives were set to meet Friday to discuss their options, including selling off pieces of the company to raise capital.
The move by Alwaleed, a long-time investor in the New York-based bank, follows the U.S. government's decision to inject some $25 billion. That left Alwaleed with about a 4% stake in Citigroup.
Alwaleed, in a press release from his holding company, expressed his faith in Citigroup management, including CEO Vikram Pandit. He added that he believed the company was doing what is necessary to weather the current economic crisis.