The market capitalization of Citigroup fell as low as $42.2 billion early Wednesday, as the bank’s shares dropped as much as 7.3 percent to a 13-year low of $7.75. U.S. Bancorp’s market value was slightly below $44 billion in early trading.
Citigroup has been under pressure because of mounting losses from mortgages and complex debt instruments, and on Monday announced plans to cut 52,000 jobs by early next year.
On Wednesday, a Fox-Pitt Kelton analyst said the bank could face $3 billion of writedowns in the fourth quarter. Citigroup also said it would buy $17.4 billion of assets held by structured investment vehicles it advised.
Citigroup is based in New York, and ended September with $2.05 trillion of assets. U.S. Bancorp is based in Minneapolis, and reported $247.1 billion of assets.
Reporting by Jonathan Stempel, editing by Gerald E. McCormick