Citigroup will use $36.5 billion to issue mortgages, credit card loans and buy distressed assets in the credit market in the coming months, the Associated Press reports citing a report from the firm.
The bank said it approved $36.5 billion which will be deployed as follows:
$25.7 billion in U.S. residential mortgage activities.
$5.8 billion in credit card lending.
$2.5 billion in personal and business loans.
$1.5 billion in corporate loan activity.
$1 billion in student loans.
Our responsibility is to put these funds to work quickly, prudently and transparently to increase available lending and liquidity, CEO Vikram Pandit said in a statement included in the report, according to the agency.
Citigroup received two payments totaling $45 billion in capital from the U.S. government by the end of 2008. Controversy grew among the government and tax payers regarding the way banks are using the bailout funds.
Pandit stated that the money from the Troubled Assets Relief Program or TARP will not be used for compensation and bonuses, dividend payments, lobbying or government relations activities, or any activities related to market, advertising and corporate sponsorship.
Citigroup plans to release the report Tuesday morning.