Citi Detractors Roar

Citigroup (C Quote) dropped 7% after an analyst suggested the bank would have to cut its dividend or sell some assets in order to raise capital levels.

CIBC analyst Meredith Whitney cut her rating on the New York banking titan to the equivalent of a sell rating. According to a note, she is concerned that Citi's busy acquisition strategy in the last two years has taken away too much capital, which has not been replaced by earnings growth.

Citi shares hit a new 52-week low on Thursday, dropping $2.69 to $38.67. The downgrade fueled a selloff in the financial sector on Thursday. The Amex Securities Broker/Dealer index dropped 3.5%, while the KBW Bank Index slid 4%. ...