Global stock markets rebounded on Monday after the US government moved to stave off a crisis in confidence in Citigroup by providing the beleaguered bank with $20bn in additional capital and arranging $306bn in credit guarantees. The rescue plan forged during a weekend of tense negotiations subjects Citi executive compensation plans to government control and will limit the company’s common stock dividend to no more than 1 cent a quarter for the next three years.

But the proposals quickly drew criticism from Washington lawmakers who said their constituents were suffering from “bail-out fatigue” and pushed the Bush administration to provide more help for homeowners.