NEW YORK (Bloomberg) — Citigroup Inc. fell the most in two-and-a-half months in New York after the bank announced a deal with regulators to repay $20 billion to taxpayers by selling equity and debt. Citigroup dropped 25 cents, or 6.3 percent, to $3.70 in composite trading on the New York Stock Exchange, the biggest decline since October 1. Volume of 822.8 million shares was almost three times the three-month average.

The bank, the only major US lender still dependent on what the government calls "exceptional financial assistance," said it will sell at least $20.5 billion of equity and debt to exit the Troubled Asset Relief Programme. The US Treasury Department also plans to sell as much as $5 billion of common stock it holds in the company, and will unload the rest of its stake during the next six to 12 months.