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Citigroup to Begin Using TARP Funds to Lend Money

Posted on 03 Feb 2009

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Citigroup said it was using $36.5 billion in taxpayer bailout money to boost lending.

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.

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, especially after an an outcry for the bank to cancel its $50 million corporate jet and rumblings over its sponsorship in the brand-new New York Mets stadium.