Goldman Sachs

(GS) - Get Report

CEO Lloyd Blankfein called

Citigroup's

(C) - Get Report

Vikram Pandit in September about a possible merger, but the Citigroup CEO immediately rejected the proposal, the

Financial Times

reported on its Web site.

Blankfein's call, placed not long after

Lehman Brothers

filed for bankruptcy protection on Sept. 15, was made with the knowledge of regulators but the conversation was brief as Pandit turned it down, the

Financial Times

reported, citing sources.

The call also was made shortly after Goldman received approval to convert itself into a commercial bank from a securities firm, the report added.

At the end of the month, the

Treasury Department

announced a $700 billion rescue package for the ailing U.S. banking system.

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This article was written by a staff member of TheStreet.com.