Citigroup's board met Friday to discuss the bank's options, a person familiar with the matter said. The Financial Times reported that although there were no concrete plans for management changes, the board was looking at Pandit's position.

The bank believes it has time to negotiate with the government, because depositors and derivatives clients are not showing any signs of fleeing the bank. Three hedge fund investors that spoke to Reuters on Friday said they continue to trade with the bank. The cost of protecting Citi's debt against default rose on Friday, but is still low enough to imply that investors are not worried about the bank making good on its obligations.

Some analysts believe that even if customers are standing by Citigroup now, they might shy away from the bank if the company's share price falls too much.

Sean Egan, analyst at ratings agency Egan-Jones Ratings, said, "Citigroup needs a deep-pocketed investor that is ready, willing, and able to step up in the next few days, and the only one who comes to mind is the government," adding that at least $50 billion may be necessary.

The bank is running ads in major U.S. and international newspapers on Sunday emphasizing its stability, noting that "200 million people around the globe have put their trust in Citi to take control and secure their futures."

The Incredible Shrinking Citi

Citigroup's market value fell to $20.5 billion on Friday. That's less than the $25 billion taxpayer-funded injection that Citigroup just received from the federal government, and a fraction of the $75 billion of capital that Citigroup has raised since the credit crisis began last year.

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