Citi's a Tough Sell

Citi's internal discussions about a possible sale are at a preliminary stage and don't signal that Citigroup's board and management are backing down from their insistence that the New York company has ample capital, funding and strategic direction, the Journal reports, citing people familiar with the matter.

CEO Vikram Pandit wants to keep the company together and is loathe to spin off its Smith Barney unit, CNBC said.

Pandit spoke on an internal conference call, adding that "rumor mongering is at the heart of our problems," according to the cable news station. Pandit said that Citi's capital position is very strong.

"Citi has a very strong capital and liquidity position and a unique global franchise," Citi said in a statement. "We are focused on executing our strategy, including our targeted expense and legacy asset reductions, and we believe the benefits will be seen over time."

The company declined to comment on any speculation of a sale.

Pirker says that while Citi's claims about its strong capital position are "good news," an extended downturn in the market is "going to kill them because they are already have a ton of writedowns and that's the problem that really put them in this position."

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