Citigroup shares jump, more than double this week

NEW YORK (Reuters) -- Citigroup shares soared on Friday, and more than doubled this week, as investors expressed relief that the second-largest U.S. bank by assets won a government bailout, and separately might not have to suffer big losses from helping to fund a giant leveraged bailout.
Shares of the bank closed up $1.24, or 17.6 percent, at $8.29, after last week reaching their lowest level in 18 years on fears about its exposure due to bad bets on toxic assets. The shares nevertheless remain 12.9 percent below where they closed two weeks ago. Late on Sunday the U.S. government announced a $20 billion capital injection into Citigroup, and agreed to shoulder most losses on a $306 billion portfolio of potentially troubled assets, in exchange for preferred shares and warrants. The fresh capital came after a $25 billion injection last month. ""The government action did not result in a severe dilution of shareholders equity and provided some relief about the toxic assets,"" said Marshall Front, chairman of Front Barnett Associates in Chicago, who said his firm bought Citigroup shares last Friday.