Fear grows on Citigroup, drops to 13-year low

Citigroup to cut more than 52,000 jobs

Citigroup Chief Executive Vikram Pandit’s plan to shed 52,000 jobs and cut expenses by one-fifth won’t restore the bank to health in walstreet on Wednesday. Citigroup faced a crisis of confidence on Wednesday as investors questioned the survival prospects of the U.S. banking giant, and its shares tumbled 23 percent to a 13-year low.
Citigroup shares closed down $1.96 at $6.40 on the New York Stock Exchange and have fallen 33 percent.

Shares of the New York-based Citigroup are down 78 percent this year, trading Wednesday brought new urgency as investors viewed the bank’s prospects in terms of other companies that either failed or went to the brink.

Worries about Citigroup were a key factor in U.S. stocks falling broadly Wednesday to a 5-1/2-year low.