Citigroup reportedly talking to U.S. govt about options

NEW YORK (Reuters) - Citigroup Inc (C.N) has been talking in recent days to the U.S. Treasury Department and the Federal Reserve about its options as its share price sinks, a person familiar with the matter said.

Several possibilities are being discussed, including the government publicly endorsing the bank or making a further investment in Citigroup. Citigroup was one of the nine initial banks to sell preferred shares and warrants to the government last month. The bank received $25 billion (16 billion pounds) from that investment, more than the company's current market value.

The bank's depositors and trading clients are not showing any signs of slowing their activity with Citigroup, which means the bank has time to discuss possibilities with the government, the person said.

But it is not clear if a public endorsement would be enough, and a cash investment may be necessary, he said.

(Reporting by Dan Wilchins; Editing by Gary Hill)