California Home Loan 360

Citigroup's billions in losses could have been worse, so the Dow surges. But with recession likely, some investors question the market's resilience. Stocks powered ahead Friday, lifting the Dow index to a three-month high on growing optimism that the worst of the credit crisis is past.

With Citigroup's loss narrower than feared and other big firms boosting profits, the Dow jumps 228 points. Major indexes gain for the week. The stock market rallied sharply Friday, capping its best week since February, after an array of companies posted results that topped analysts' estimates.

The $330-billion auction-rate securities market will "cease to exist" after it collapsed in February because Wall Street firms stopped using their own capital to buy bonds when demand fell short, a Citigroup Inc. analyst said.

Citigroup on Thursday said it aims to cut its home loan exposure by $45 billion, reduce risk and save $200 million a year in an overhaul of its U.S. residential mortgage business.

The Dow drops 45 points amid news of continuing Citigroup woes. It had been down more than 200 points. Fresh concerns about the financial sector dragged down the stock market again Tuesday, but a late rally staved off deeper losses.

Feb. 12 (Bloomberg) -- Bank of America Corp., Citigroup Inc. and four other U.S. lenders will announce new steps today to help some borrowers in danger of default stay in their homes, according to three people familiar with the plans.

BANKING Citigroup is expected to choose CEO

A drop in oil prices helps the Dow rise 215 points and nearly recover from the previous day's decline. Stocks rebounded Tuesday from a sharp decline the day before as investors took comfort from a drop in oil prices and a big cash infusion into ailing Citigroup .