The bank's market value topped $270 billion in late 2006.

The latest declines left Citi smaller by market value than each of Canada's top three banks: Bank of Nova Scotia, Royal Bank of Canada and Toronto Dominion Bank.

Citigroup's market value is now also in line with Goldman Sachs Group Inc's. Investors speculated on Friday that Goldman might look to buy Citigroup, but a person familiar with Goldman's strategy said it is not interested.

Analysts speculated that the bank may look to sell its Banamex business, the second-largest bank in Mexico, in a deal that could raise as much as $15 billion for Citigroup.

Regulators Have Intervened Before

Within the last three months, major US lenders Wachovia Corp and Washington Mutual Inc suffered rapid outflows of deposits, as losses mounted on mortgages and other debt.

Under pressure from regulators, Wachovia agreed to sell itself, while Washington Mutual failed and its deposits and some of its assets were bought by JPMorgan Chase & Co.

On Monday, Pandit set plans to shed 52,000 of Citigroup's 352,000 jobs by early 2009, and to move tens of billions of dollars in troubled securities onto its balance sheet.

The bank is also pushing the US Securities and Exchange Commission to reinstitute a temporary ban on short sales of financial stocks, a person familiar with the matter said. The broader industry is also lobbying for a temporary ban.

In the credit derivatives market, the cost to protect $10 million of Citi's debt for five years rose to $470,000 annually, up from $395,000 annually on Thursday, according to Phoenix Partners Group.

... contd.