Citigroup, JP Morgan & Capital One Financial Corp bid for Chevy Chase on 100 Mortgages

Citigroup continued to fall today, and in morning trade in New York fell as low as $4.77 taking the price to almost a 14-year low, by the early afternoon the shares regained a little at $5.57.

Reports out today in Reuters rumoured that Citigroup was one of three bidders for Chevy Chase Bank along with Capital One Financial Corp and JP Morgan Chase.

Citigroup shared fell despite Alwaleed bin Talal the Saudi Prince said he plans to up his stake in the troubled bank to 5 percent and brands the banks shares as “dramatically undervalued”. Since 2006 the stock value of Citigroup has plunged almost 90 percent.

Investors still questioned Citigroup’s ability to deal with additional writedowns and credit losses that is expected to be billions in 2009 as the global economy slips into recession.

This month alone Citigroup has lost almost half of its market value, but the US bank is not alone, Bank of America Corp lost 7 percent this month and JP Morgan Chase & Co lost almost 13 percent.

Source: Guadian

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