Citigroup New York trading in the past month

Investors are treating New York financial services company Citigroup Inc. as the next financial institution to face the prospect of a dramatic makeover.

The shares fell almost $2 US Thursday, and on Friday dropped another 94 cents to close at $3.77. The stock has lost more than half its value since last Friday, and traded for more than $35 at its peak in the past year.

It has reported huge losses over the past year, but now investors are worried that its consumer business could weaken as the economy shrinks all over the world, the New York Times reported.

The company scheduled a board meeting for Friday, where the directors will consider whether to break up the company or put itself up for sale, the Wall Street Journal reported.

It has been under pressure to undertake a fundamental restructuring to boost the share price, even though management has said Citi — its brand name — is solvent and strong.

Even the intervention by Saudi investor Prince Alwaleed bin Talal has not been enough to stop the stock slide. On Thursday, he decided to increase his holding to five per cent of Citi's stock from less than four per cent.

The bank has been cutting jobs for months, on Monday announcing another 52,000 would go.

The company, which dates back to 1812, includes a number of famous names among its holdings, including Salomon Brothers.