Where did Citi put $36.5 billion of TARP funds?

Citi provided a detailed report on how it is deploying the governmental bailout $45 billion under the TARP program. The report covers the 4th quarter of 2008 and is titled “What Citi is Doing to Expand the Flow of Credit, Support Homeowners and Help the U.S. Economy.”

As reported by the bank Citi is acting in three main directions: it tries to expand available credit to consumers and corporates, resume the liquidity and stability to the capital markets and contribute to the revival of the U.S. economy. The report, which is available on Citi’s website, is supposed to be updated every quarter. Doon after the bank received the initial government bailout Citi arranged a Special TARP Committee of senior executives to control how the company uses these funds.

Thus in the 4th quarter the Committee authorized $36.5 billion for a number of initiatives launched across its businesses. Citi is deploying the capital to work in five major areas:

•    U.S. residential mortgage activities – $25.7 billion

•    Personal and business loans – $2.5 billion

•    Student loans – $1 billion

•    Credit card lending – $5.8 billion 

•    Corporate loan activity – $1.5 billion