Citi Publishes Latest Quarterly Tarp Progress Report
New Programs Increase Citi’s Total TARP Initiatives to $50.8 Billion, as of June 30; Overall New U.S. Credit Totaled $129.7 Billion in Second Quarter.
New York – Citi (NYSE: C) today published its TARP Progress Report for the second quarter of 2009, detailing the steps the company is taking to extend credit to U.S. consumers, businesses and communities, support American homeowners and help the U.S. economy.
Citi approved $6.0 billion in new initiatives during the quarter, bringing the aggregate value of approved programs supported by capital from the Troubled Asset Relief Program to $50.8 billion as of June 30. At the close of the second quarter, Citi has put to work $15.1 billion of that total, or nearly one third.
TARP-supported lending is only part of Citi’s overall U.S. lending. Citi has made $330 billion in new credit available to U.S. consumers, businesses and communities since October 2008, including $129.7 billion in the second quarter, an increase of 8 percent compared to the first quarter. New lending to U.S. consumers in the quarter was $56.2 billion, up 22 percent from the first quarter.
“At Citi, we recognize that we have a tremendous responsibility to contribute to America’s economic future,” Citi Chief Executive Officer Vikram Pandit said. “Our efforts have enabled businesses to keep their doors open, spurred job creation in communities and provided families with access to additional funds at times when they’ve needed it the most.”
The new TARP initiatives Citi approved in the second quarter are as follows:
* Municipal Letters of Credit – This program allocates up to $4.0 billion for Citi to provide letters of credit to state and local governments, municipal agencies, healthcare organizations and other public finance clients for up to three years. The initiative builds on the successful program approved in the first quarter that provides up to $5 billion in direct lending to municipal clients.
* Lending Facilities for Mortgage Originators – This program allocates up to $2.0 billion for Citi to provide financing to mortgage loan originators via warehouse lending facilities. Citi will provide originators with collateralized lines of credit that are backed primarily by residential mortgages which are eligible for sale to government-sponsored mortgage agencies.
All of Citi’s TARP capital-supported initiatives are reviewed and authorized by a Special Committee of senior executives as part of the company’s oversight and approval process. Citi’s procedures include monitoring and tracking the use of this capital, and are designed to ensure that TARP funds are put to work prudently, transparently and according to clear guidelines.
Citi also continues to take significant steps to help homeowners and credit card borrowers facing financial difficulty.
Since the start of the housing crisis in 2007, Citi has worked successfully with approximately 625,000 U.S. homeowners to avoid potential foreclosure on mortgages totaling more than $67 billion. In the second quarter alone, Citi worked with approximately 108,000 borrowers to avoid potential foreclosure on mortgages with a total original value of more than $16 billion.
Citi is also helping more than 1.4 million U.S. consumers and small businesses to manage their credit card debt through a variety of forbearance programs, with approximately 460,000 card members entering these programs in the second quarter.
The report, titled “What Citi is Doing to Increase Lending, Help Keep People in Their Homes and Help Create Jobs,” can be found at www.citigroup.com.
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