The U.S. federal government announced it would finance a $20 billion investment in financial giant Citigroup and would guarantee losses on more than $300 billion of it’s troubled assets.

U.S. markets shot up upon hearing the news of Citi’s fresh restart with S&P 500 up 494 points from a 11 and a half year low.

Peter Cardillo, analyst for Avalon Partners is optimistic saying, “Obviously the news out of Citi is welcoming, we might be in for another day of gains today, and if that’s the case, then we’ll have two days of gains.” (CNNMoney Report)

Citigroup’s collapse toppled the firm’s shares to a low of 87%.