TOPWRAP 10-Japan in recession; Citi slashes 52,000 jobs

(For more stories on the financial crisis click [ID:nCRISIS])

* Japan's economy joins Europe in recession

* U.S. in 14-month recession - forecasters

* U.S. Senate debates automaker rescue

* Citigroup sets one of history's biggest layoffs - 52,000

* U.S. stocks close down more than 2 pct (Updates to close of U.S. markets)

By Patricia Zengerle

WASHINGTON, Nov 17 (Reuters) - Japan became the latest major economy to fall into recession and Citigroup (C.N) said on Monday it would cut 52,000 jobs, one of history's largest layoffs, stoking fears the global economic slump is worsening.

After a weekend meeting of the Group of 20 advanced and emerging economies failed to come up with specific new measures to ease the world's financial strains, the IMF said it needed at least $100 billion in extra funding to fight the crisis.

Citigroup, the U.S. bank with the farthest global reach, announced the biggest round of job cuts since the financial crisis erupted last year, slashing 15 percent of its workforce in a bid to return to profitability.

The cuts come on top of 23,000 reductions Citigroup had already announced and only lags behind 60,000 layoffs by IBM in July 1993 as the largest ever, according to outplacement firm Challenger, Gray & Christmas Inc.

After stock markets closed, the U.S. Treasury said it had completed equity purchases in 21 more banks totaling $33.56 billion, including $6.6 billion in U.S. Bancorp (USB.N).

In a bid to contain the economic fallout, the U.S. Senate debated a bailout of American car firms, Germany said it was ready to guarantee funds for General Motors Corp's (GM.N) Opel unit, and Japan's Toyota (7203.T) came under ratings scrutiny.

Automakers have taken the brunt of the impact from a dramatic decline in consumer spending, triggered by a housing crash and worsened by rising unemployment.

CREEPING GLOBAL RECESSION

The United States fell into a recession in April and the downturn is expected to last 14 months with unemployment reaching 7.7 percent this year, according to a survey of private forecasters by the Federal Reserve Bank of Philadelphia. Fore more see [ID:nN17502311].