NEW YORK, Nov 24: The US government rescued Citigroup Inc, agreeing to shoulder most of the potential losses from $306 billion in its risky assets and inject $20 billion in new capital, its biggest effort yet to prevent a big bank from failing.

The bailout, announced late on Sunday, gives the government the right to buy another 4.5 per cent equity stake, and marks its latest effort to contain a widening financial crisis that has already brought down Bear Stearns Cos, Lehman Brothers Holdings Inc and Washington Mutual Inc.

Citigroup received the latest government infusion after its shares plunged 60 per cent last week to below $4 amid growing concern it would need large amounts of capital to survive the recession, and less than a week after it set plans to slash 52,000 jobs, leaving it with 300,000 employees.—Reuters