Investing.com -- Citigroup Inc. (NYSE: C) shares fell 4% Friday after Bloomberg reported the bank is considering acquiring a regional lender.

The New York-based bank’s senior leaders held preliminary discussions in recent months about purchasing a regional bank to boost deposits, which could support its lending and trading operations, according to Bloomberg. Some executives raised the possibility during a meeting with U.S. regulators this year, with authorities signaling openness to reviewing a formal proposal.

Citigroup remains under two consent orders requiring regulatory approval before pursuing any acquisition. The bank denied the report, stating "The suggestion that Citi is planning to buy a regional bank, wealth brokerage — or any other financial services firm — is baseless speculation."

According to the report, Citigroup could target banks with approximately $500 billion in assets, including Truist Financial Corp. (NYSE: TFC) and PNC Financial Services Group Inc. (NYSE: PNC), each with market capitalizations exceeding $50 billion. The bank has also expressed interest in acquiring brokerages such as Stifel Financial Corp. (NYSE: SF) or Raymond James Financial Inc. (NYSE: RJF).

The discussions remain in early stages with no guarantee the firm will make a formal approach, according to sources cited in the Bloomberg report.