Citibank to make $36.5 bn available for lending

February 3rd, 2009 - 8:58 pm ICT by IANS  

New York, Feb 3 (DPA) Citigroup Inc. has plans to use $36.5 billion - part of a $45-billion government bail-out - for consumer and corporate loans and new US mortgages, Bloomberg reported 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 said.

Citing company sources, the news service reported that Citigroup plans to make available $25.7 billion for mortgages, $2.5 billion for consumer loans, $1 billion for student loans, $5.8 billion for credit card lending and $1.5 billion for corporate loans.

Also Tuesday, the Wall Street Journal reported that Citigroup has dropped plans to spend $400 million on marketing with the New York Mets baseball team, a proposal that had been met with protest by lawmakers.

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