According to the Wall Street Journal Citigroup Inc. is going to have an emergency meeting this Sunday as Chief Executive Charles Prince is expected to resign.

This comes after shareholders suffered a 31 percent loss in the market capitalization of the biggest U.S. bank and also from mortgage debts.

Citigroup declined to comment upon this situation.

The largest U.S. bank posted a 57 percent profit drop in the third quarter after reporting taking $6.5 million dollars in writedowns and defaulting mortgages. Citigroup said that it lost $1.3 billion on subprime assets and in fixed-income trading about $600 million.    

Since then speculations appeared regarding Prince leaving.

Punk Ziegel & Co. analyst Richard Bove said yesterday in an interview: “The board may have simply reached the point where they can’t take the pressure from stockholders and they have to remove him.”

Citing one of the people familiar with the matter, the Journal reported that Securities and Exchange Commission is investigating into how Citigroup is accounting for some transactions in a rescue plan of a banking-industry. It actually checks if the company accounted in the right way for $80 billion in structured investments vehicles. 

Yesterday the company rose $1.31 to $39.04 in extended trading, after falling 78 cents in N.Y. Exchange composite trading. This year company’s shares have lost 32 percent comparing with the gain of 6 percent in the S&P 500 Index over the same period.

Prince is the successor of Sanford Weill as CEO of Citigroup since October 2003. He brought expansion overseas of the company. The company has 327,000 employees, offices in almost 100 countries and $2.2 trillion in assets and celebrated this October Prince’s fourth year in the company.

In order for the company to return value to the shareholders is to split into three companies: an investment bank, a consumer bank, and a wealth-management brokerage, according to the sayings of President of Smith Asset Management, William Smith.

He said in an interview: “They’ve got to put a close to this chapter; they’ve got to put some morale back into the company.”

Now the executive committee chairman of the company Robert Rubin along with the biggest individual shareholder of Citigroup, Arabian Prince Alwaleed bin Talal, said they support the search for bank’s CEO.