Stay ahead of the changing markets
Services Technology Rates Experience

Mortgage News

Citi Announces $36.5 Billion TARP-Backed Loans

ServicesSource: Associated Press

Citigroup said it was using $36.5 billion in taxpayer bailout money to boost lending even as growing political outcry put pressure on the bank to end a $400 million baseball stadium sponsorship deal.

The bank issued a report describing its plans for the new capital, much of which will be used to make government-backed loans, including $10 billion of home loans supported by Fannie Mae [FNM 0.60 --- UNCH (0.85) ].

Those plans follow the U.S. injecting $45 billion of capital from the government since October through the Troubled Asset Relief Program.

That high degree of government support has created a new political dimension to the bank's decisions.

Citigroup [C 3.74 0.09 (+2.47%) ] is considering backing out of a $400 million marketing agreement signed in 2006 with the New York Mets, a U.S. baseball team, The Wall Street Journal reported on Tuesday.

That deal include naming rights for a stadium in New York.

Last week, U.S. Rep. Dennis Kucinich, a Democrat, and Rep. Ted Poe, a Republican, sent a letter to the U.S. Treasury requesting that it press Citigroup to dissolve the contract.

Last week, Citigroup canceled an order for a $50 million executive jet it placed in 2005 after politicians balked at the planned purchase.

Citigroup spokeswoman Shannon Bell said on Tuesday that the bank signed a legally binding agreement with the New York Mets in 2006, and that no TARP capital will be used for the agreement or for marketing purposes.

The bank has received $45 billion of capital from the U.S. Treasury's Troubled Asset Relief Program and has also issued $7 billion of preferred stock to the Treasury and the U.S. Federal Deposit Insurance Corp in exchange for the government guaranteeing a $301 billion portfolio of assets.

Other News:

Related Links
 

 
Marketing News

Get the latest information on our marketing campaigns.

 
Learn more...
Mortgage News

Learn how you can be successful admist the ups and downs of the real estate market using our proven technology.

 
Learn more...