Sent: Tuesday, May 12, 2009 9:29 AM
Subject: Second Quarterly Progress Report on Use of TARP Capital
Today we are issuing our second quarterly progress report on how we are putting to use the $45 billion of capital the U.S. Treasury has invested in Citi as part of the federal government's Troubled Asset Relief Program, or TARP.
The report covers the first quarter of 2009 and I encourage you to read this important document, which is also available to the public at http://www.citigroup.com/citi/press/2009/090512a1.htm.
Citi's Special TARP Committee has now authorized initiatives to deploy $44.75 billion in TARP capital across key areas of the U.S. economy to help expand the flow of credit to consumers, businesses and communities.
Among the new initiatives authorized in the first quarter is a $5 billion direct municipal lending program for state and local governments, municipal agencies, universities and non-profit hospitals to finance infrastructure and capital projects that will help create jobs and spur economic growth.
In addition, the report describes how Citi continues to lend to consumers and businesses in the United States, despite the challenging economic environment. In the first quarter, Citi made total new credit commitments of $120 billion, including $45.9 billion in loans to U.S. consumers. Since October 2008, Citi has extended more than $200 billion in new credit to U.S. consumers and businesses.
The report also details the substantial efforts we are making to support U.S. borrowers in these difficult times.
Citi has worked successfully with approximately 520,000 homeowners to avoid potential foreclosure on combined mortgages totaling more than $50 billion since the start of the housing crisis in 2007. We also are currently helping 1.3 million credit card members manage their card debt through a variety of forbearance programs.
We will continue to explore every opportunity to put TARP capital to work in a disciplined, transparent and responsible fashion, consistent with Citi's prudent lending standards. And, as this report shows, Citi is committed to helping to ensure that our financial system returns to good health and that all Americans will have an opportunity to share in the recovery of our economy.
Thank you for your continued dedication to our clients and customers.