Citigroup to use $36.5 billion for lending: report
By Barbara Kollmeyer
Last update: 6:00 a.m. EST Feb. 3, 2009
MADRID (MarketWatch) -- Citigroup Inc., plans to use $36.5 billion for consumer and company lending and to fund U.S. mortgage loans from the $45 billion it got from the government in bailout funds last year, according to Bloomberg, which obtained a copy of a report the company is expected to issue on Tuesday. The bank will use $25.7 billion for mortgages, $1 billion for student loans, $5.8 billion for credit card lending and $1.5 billion for corporate loans, the report said, according to Bloomberg. "The government, on behalf of the American taxpayer, has invested in Citigroup," Chief Executive Officer Vikram Pandit reportedly said in a statement. "We have an obligation to repay in ways that will go well beyond the $3.41 billion Citigroup will pay the government each year in dividends associated with its TARP (Troubled Asset Relief Program) investment, and a separate loss-sharing agreement." Citigroup reportedly said the TARP funds won't be used for compensation, bonuses, dividend payments, lobbying or government-related actions or activities related to marketing, advertising or corporate sponsorship.
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