U.S. Stocks Rise After Citigroup Gets Government Loan Backing

U.S. Stocks Rise After Citigroup Gets Government Loan Backing

y Elizabeth Stanton

Nov. 24 (Bloomberg) — U.S. stocks climbed for a second day after the government said it will guarantee $306 billion of troubled Citigroup Inc. assets and Democratic lawmakers pledged to pass an economic stimulus package by January.

Citigroup, which lost more than 60 percent of its market value last week, rebounded 52 percent after the Treasury Department also agreed to inject $20 billion into the bank. JPMorgan Chase & Co. added 5.2 percent and Bank of America Corp. rose 11 percent as the guarantee eased concern that a flight of depositors might destabilize Citigroup, which has $2 trillion of assets. Alcoa Inc. and Microsoft Corp. climbed more than 4.5 percent on speculation a new stimulus will spur economic growth.

The Standard & Poor

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