The details about additional layoffs, meanwhile, are uncertain. Pandit has been working on what he called an "objective, dispassionate review" that might lead to a reorganization or other adjustments.
For Citigroup, things may yet get worse.
The company announced in December that it would bring tens of billions of dollars' worth of securities held by structured investment vehicles onto its balance sheet.
And as rising unemployment adds to the gloomy talk about a recession, Citigroup may face more losses on home equity loans, credit card debt and personal loans.
China backed off
Such a possibility makes raising new capital vital. Alwaleed, who helped rescue Citigroup in the early 1990s, and Capital Research and Management, a money management firm that is the bank's biggest shareholder, are being offered the chance to invest to avoid having their current stakes diluted, but it is unclear whether they will choose to do so.
In addition to Kuwait, Government of Singapore Investment Co. is also involved. A planned multibillion-dollar investment by China Development Bank fell through recently because of resistance from the Chinese government, according to a person briefed on the plan.
While Chinese investors have bought big stakes in Wall Street firms such as Bear Stearns Cos. , the scuttled deal with Citigroup suggests there may be limits on how much the Chinese government is willing to invest in Western banking.
Some analysts said Pandit might have to raise more capital after the latest infusion.
"Citigroup needs $20 to $30 billion" over the next year, said Christopher Whalen, managing partner of Institutional Risk Analytics.
