Credit Crisis Solutions

Citigroup Banks plunges on uncertainties

Shares in Citigroup, one of the biggest US banks, on Friday plunged amid uncertainty about the firm’s future.

The firm’s stock rose in early trading but later tumbled to end the day 20% lower at $3.77 as investors awaited the outcome of a meeting of board members.

Earlier in the week the firm announced 52,000 job losses worldwide.

“Its fear and panic at this point, ” said Gerard Cassidy, a banking analyst at RBC Capital.

Citigroup is one of nine financial institutions receiving funds from the US government’s bail-out programme.