WASHINGTON — To help stabilize Citigroup Inc., the government announced it would guarantee $306 billion in assets and pump an additional $20 billion in capital into the New York bank.

"The U.S. government is committed to supporting financial market stability, which is a prerequisite to restoring vigorous economic growth. In support of this commitment, the U.S. government on Sunday entered into an agreement with Citigroup to provide a package of guarantees, liquidity access and capital," said a Treasury statement issued just before midnight on Sunday.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.