Last Updated: February 27th, 2009: 12:02 PM ET---After opening lower on a disappointing preliminary GDP contraction of -6.2% and another government lifeline for Citigroup (NYSE:C), the major US equity indices have rebounded from session lows and are now trading mixed. Sector action is mixed as well with financials dragging on the broader market, off 3%; meanwhile, consumer services is providing leadership, up 0.8%. Prior to the open, Citigroup (NYSE:C) issued a report saying the Obama administration plans to give them another lifeline, now its third, which involves the Treasury Department converting preferreds into common equity. The government's stake will probably be in the range of 30% and 40% following the conversion, according to sources. The Obama administration plans on requiring Citigroup (NYSE:C) to raise capital through private sources as well as shakeup its board of directors in an effort to strengthen the bank. The move comes after Citigroup (NYSE:C) shares fell to dangerous levels, below the $2.00 level during the last week. Citigroup is trading off 35% on the news. The Dow Jones is trading 0.2% lower, to 7,169, the Nasdaq is trading 0.1% higher to 1,393 and the S&P 500 is trading 0.7% lower to 748.

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