In a move geared at bringing clandestine investment aback to the banking system, the U.S. Treasury has agreed to match clandestine conversions of adopted shares of Citigroup into accepted equity.

Citigroup said it would action to barter up to $27.5 billion of adopted banal into accepted disinterestedness at a about-face amount of $3.25

per allotment with the U.S. government analogous the exchange, up to $25 billion.

The move is geared at alluring clandestine basic aback to the close and may serve as a arrangement for the U.S. Treasury's Basic Assistance Program, appear just canicule ago.

The move could access the U.S. government's pale in the close to up to 40%.

In exchange, the close will re-shuffle its administration to comprise mostly of absolute directors, but CEO Vikram Pandit will accumulate his job. The Treasury said it will not be abacus new money to Citigroup.

"This balance barter has one ambition - to access our actual accepted equity," Pandit said in a columnist release. "While we accept Tier 1 basic charcoal the a lot of important admeasurement of the banking backbone of banks, we admit that the markets aswell appearance Actual Accepted Disinterestedness as an important measure."

The U.S. Treasury aswell acicular out that the move would not crave added aborigine investments into the firm.

At 7:05 a.m. EST, shares of Citigroup were up 2.44% in pre-market trading.