UPDATE 1-More gov't control may bump GM, Citi from Dow

NEW YORK, March 10 - If the U.S. government assumes greater control over U.S. bank Citigroup <C.N> or automaker General Motors <GM.N> that might "trigger" their removal from the Dow index, the Dow Jones Indexes said on Tuesday.

John Prestbo, editor and executive director of the DJ Indexes, which selects the 30 stocks in the Dow Jones industrial average <.DJI>, said he tracks both companies "every day to see what the status is."

Should either stock be removed, "everything is on the table basically in terms of replacements," Prestbo said, adding that the financial sector's weight in the Dow was "a bit light" compared with the overall market.

Despite billions in government aid, both Citi and GM trade below $2 and serve as symbols of corporate excess. Their dismal stock market performance has prompted some analysts to say the two stocks should be replaced in the Dow.

Last week Citigroup, once the world's most valuable bank, sank to 97 cents, days after the government took a 36 percent stake in the company. Additionally, auditors for GM said the automaker was on the brink of bankruptcy without further government aid.

Regarding Citigroup, Presto said that if the government stake "went to 50 percent or over, then there would be no question" about its removal from the index.

Still, as of right now, both stocks continue to be "good representations" of their respective sectors, Prestbo said.

"We're watching this play out."