It's hardly surprising that Citigroup wants to find a way to cut the government's 34 percent stake. The latest idea calls for Citigroup to issue more common shares, a move that would be accompanied by a government sale of its shares, reports the Financial Times. The plans are quite preliminary, and the government has not even been approached for approval. So this all has the feel of a trial balloon.

Some think the time is right because Citigroup's stock has soared. At $4.50 a share, the government has generated a paper gain of about $10 billion. Every penny increase in the stock price produces a $76 million gain, according to a UBS analyst. But financial stocks are anything but stable. Citi has some huge challenges to work through. It maybe premature. Indeed, the stock fell on the news of a possible government sale.

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