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Report: Citibank to make 36.5 billion dollars available for lending
Feb 3, 2009, 11:03 GMT
New York - Citigroup Inc. has plans to use 36.5 billion dollars - part of a 45-billion-dollar government bail-out - for consumer and corporate loans and new US mortgages, reported Bloomberg Tuesday.
The move comes as US politicians have become increasingly critical of US banks for taking federal bail-outs but not redistributing that money in the form of loans, a key ingredient in fighting the ongoing credit crunch.
Barney Frank, chairman of the Financial Services Committee in the House of Representatives, has said that the White House will soon require banks to make more loans in return for aid, Bloomberg reported.
Citing company sources, the news service reported that Citigroup plans to make available 25.7 billion dollars for mortgages, 2.5 billion dollars for consumer loans, 1 billion dollars for student loans, 5.8 billion dollars for credit card lending and 1.5 billion dollars for corporate loans.
Also Tuesday, the Wall Street Journal reported that Citigroup has dropped plans to spend 400 million dollars on marketing with the New York Mets baseball team, a proposal that had been met with protest by lawmakers.
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