When do you know you’re in a seriously bad way? When it appears even a billionaire Middle Eastern investor and his $250 million wallet can no longer help you. Today, the huddle begins at Citigroup’s headquarters among its embattled CEO Vikram Pandit, chairman Sir Win Bischoff and independent director Richard Parsons, but on the heels of a stock drop of roughly 50% this week to a 15-year low, what are their options? A closer look at the possible fate of a bank that’s gone from a towering market cap of $274 billion to, just yesterday, $26 billion. Will they successfully make the 11th-hour save – or will they get Bear-Lehmaned?

Executives at Citigroup Inc., faced with a plunging stock price, began weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright, according to people familiar with the matter.

The internal discussions 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, these people said. But with the stock down another 26% Thursday, its worst one-day percentage decline ever, Citigroup officials have decided they need to reckon with a range of scenarios that were unthinkable only weeks ago.

Citigroup's board of directors is scheduled to have a formal meeting Friday to discuss the options, according to people familiar with the situation. Directors also have been talking by phone about what could be done to reverse the stock's slide.

Top executives were locked in meetings Thursday to hash out a stabilization strategy. Chief Executive Vikram Pandit scheduled a conference call for 8 a.m. Friday to discuss the situation with senior managers.

A Citigroup spokeswoman said in a statement Thursday evening: "Citi has a very strong capital and liquidity position" and is "focused on executing our strategy," which includes cutting expenses and selling assets. "We believe the benefits will be seen over time."

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