Citigroup tumbles 73.1%, JP Morgan Chase stays out of red

The New York based Citigroup (NYSE:C) share tumbled during morning trade today by 3.8 percent or 33 cents to $9.19, after news the megabank will layoff 53,000 of its employees. The Citigroup news came as a meeting was held in New York this morning (November 17) where the banks CEO Vikram Pandit told employees the news that the cuts will happen by the end of the first quarter in 2009.

Citigroup have been under immense pressure after posting over $20 billion in losses over four consecutive quarters, as well as losing to Wells Fargo in a deal to buy Wachovia. Citigroup shares have tumbled 73.1 percent from this time a year ago.

Both JP Morgan Chase and Bank of America branded rivals of Citigroup have managed to stay out of the red after acquiring troubled financial outfits at bargain prices.

It’s expected that the new downsized Citigroup may acquire a regional bank to keep it afloat, these regional banks could be for the pickings, BB&T, Regions Financial and SunTrust.

Source: forbes