White House says gov't move good for Citigroup

WASHINGTON (Reuters) - The White House said on Friday the U.S. government's move to increase its stake in crisis-hit Citigroup would put the banking giant in a better position but repeated its stance against any broad moves to nationalize banks.

"I think many of the steps that Treasury took in the agreement represent an important change from what has happened before, gives Citi the opportunity with more capital to have a better outcome," White House spokesman Robert Gibbs told reporters.

He said that earlier statements by senior officials including Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke opposing bank nationalization represented Obama administration policy.

"I think Mr. Bernanke and Secretary Geithner have been quite clear ... about our position on nationalization," he said.

(Reporting by Jeff Mason, editing by Jackie Frank)