IBT Staff Reporter

The U.S. government will boost its stake in Citigroup Inc to as much as 36 percent, bolstering the banking giant's capital base in one of the most dramatic efforts yet to prop up the ailing banking industry.

The U.S. economy contracted at its sharpest rate since early 1982 in the fourth quarter, revised data showed on Friday, as exports plunged and consumers cut spending by the most in more than 28 years.

Stock index futures extended losses on Friday, suggesting the benchmark S&P 500 may open below its November 21 bear market low, as government data showed the economy contracted more sharply than initially estimated in the fourth quarter.

The U.S. economy contracted more sharply than initially estimated in the fourth quarter, government data showed on Friday, as exports plunged and consumers cut spending by the most in over 28 years amid a severe recession.

Stock index futures fell on Friday, weighed by a drop in financial shares following news that the U.S. government is taking a large common equity stake in embattled lender Citigroup .

The Treasury Department announced on Friday it will convert some of the preferred stock it holds in struggling Citigroup into common stock, a step that will give it a significant stake in the bank.

Many Americans applauded the spending plans and tax breaks set out in President Barack Obama's record budget, while others questioned the yawning deficit it would entail.

Microsoft Corp's chief financial officer forecast at least another year of tough trading in all areas on Thursday, as the economy shows no immediate sign of recovery.

Governments on both sides of the Atlantic moved to tighten their grip over banks on Friday to stem a financial crisis that has pushed the U.S. economy into its deepest contraction in more than a quarter century.

Broke, desperate Americans are most likely to be targeted by scam artists and the amount they lose is rising, the National Consumers League said.

Part-nationalized Lloyds Banking Group unveiled a 10 billion pound ($14.28 billion) loss for 2008 and said it had not finalized a plan to put billions of pounds of assets into a UK government-backed insurance scheme.

Stock index futures turned lower on Friday on news the U.S. government is taking a large common equity stake in embattled lender Citigroup .

Futures for the Dow Jones industrial average index fell 0.1 percent on Friday, gained 0.3 percent for the Nasdaq 100 and rose 0.1 percent for the S&P 500 share index, pointing to a mix open for Wall Street.

The U.S. government will commit to holding a common equity stake of up to 30-40 percent in Citigroup in a deal that will see most of the group's board replaced, a person familiar with the transaction said on Friday.

Dell Inc expects its Asia revenue to fall this year, amid heated competition and the global slowdown, but it still expects to pick up share in the PC markets in China and India, a top executive said on Friday.

The U.S. government and Citigroup have reached a deal to convert up to $25 billion in government-held preferred shares in the bank to common equity, a person familiar with the transaction said early on Friday.

New York's top legal officer on Thursday demanded Bank of America Corp Chief Executive Kenneth Lewis provide names of Merrill Lynch executives who received 2008 bonuses, and how much they got, before the bank's takeover of the firm in January.

India's fraud-hit Satyam Computer Services wants to offer no more than 31 percent in new shares to a strategic investor, the Mint newspaper reported on Friday, citing a company source familiar with the matter.

The U.S. debt held by the public may grow nearly twice as fast over the next two years than previously expected after President Barack Obama today unveiled his spending priorities to add trillions of dollars to the federal budget, including help for the financial industry and job generation through government programs.

The New York Attorney General's office has subpoenaed Bank of America to submit a list of employees who got bonuses and the amounts that the employees received, a spokesman for the New York Attorney General said on Thursday.

The FBI made the first arrest in the Stanford Financial Group fraud investigation on Thursday, detaining Chief Investment Officer Laura Pendergest-Holt on federal obstruction charges.

Americans hold a dim view of business executives, giving them poor grades for honesty and ethics and blaming them for business failures, according to a survey released on Thursday.

On February 26, Veterans for America, VFA, issued a statement urging President Barak Obama to address the dire conditions on the military bases and in communities in the United States.

The U.S. government may agree to finance the purchase of some American International Group Inc businesses and take direct stakes in others, a person familiar with the matter said on Thursday.

Motorola Inc (MOT.N) sees industry cellphone sales increasing in the mid-single-digit percentage range next year and in 2011, driven by first time buyers in emerging markets and upgrades to new models by existing users.

Americans hold a dim view of business executives, giving them poor grades for honesty and ethics and blaming them for business failures, according to a survey released on Thursday.

Gap Inc on Thursday posted a lower fourth-quarter profit with a steep drop in sales and said it would close additional stores, especially at its namesake Gap chain, as it tries to weather a recession.

Go off-peak, or in the 'shoulder season' just before the masses arrive. For example, African safaris in the rainy season cost up to 40% less, and offer the chance to see more new-born animals; the Galapagos Islands in May are 20-30% cheaper than December / January or high summer - and offer warmer, calmer conditions

Gap Inc on Thursday posted a lower quarterly profit, but cost cuts helped counteract a drop in sales at the global apparel retailer.