Call it Vikram Pandit’s “midnight magic”. The staff memo sent by the Citigroup chief executive just before the clock struck 12 on Monday night appears to have done the trick, at least for one day.

Equity and bond investors who read the document’s assertion that Citi was profitable in January and February were able to put aside their worries over the beleaguered bank’s long-term future and send its shares soaring. Citi’s battered stock closed up $0.40 at $1.45, a rise of more than 38 per cent. More than 1.87bn shares Citi changed hands – the fourth-largest volume in US history and a sign that the stock’s jump was underpinned by heavy buying.