Jan. 15 (Bloomberg) -- Citigroup Inc. plunged as much as 25 percent in New York trading on concern the bank may be forced to seek more government assistance on top of the $45 billion of U.S. funds that it already received.

“Citi’s got their hand out from now ‘til the end of time,” said Peter Kenny, a managing director in institutional sales at Knight Equity Markets in Jersey City, New Jersey.

Citigroup dropped $1.13 to $3.40 as of 10:36 a.m. in New York Stock Exchange composite trading. The stock last closed below $4 on Nov. 21, the day before the government agreed to guarantee $306 billion of assets and grant the bank $20 billion on top of the $25 billion it got in October.

Vikram Pandit, the bank’s chief executive officer, said this week that he would cede control of the Smith Barney brokerage to Morgan Stanley. Pandit may also dump the CitiFinancial consumer-lending unit, tag Tokyo-based Nikko Asset Management Co. for eventual sale and rein in trading with the bank’s own capital, people familiar with the matter said.

To contact the reporters on this story: Bradley Keoun in New York at bkeoun@bloomberg.net.

Last Updated: January 15, 2009 10:52 EST