Thursday, February 5, 2009

Citi's TARP Report

Here is 43 pages of worthless, self promoting Citi chat about how they are being good corporate citizens with the TARP funds.
The United States Government has made a significant investment in major financial institutions, including Citi, under the Troubled Asset Relief Program (TARP). Citi understands that TARP is about helping the American people, and supporting U.S. businesses and our communities. Our responsibility is to put these funds to work quickly, prudently, and transparently to increase available lending and liquidity. 
This report is the first that we will publish about the activities we are undertaking in connection with the TARP program. It also explains the many other steps Citi is taking to assist American families and individuals who face financial hardship or are at risk of losing their homes.
The trouble with all this is that, among other things, TARP equity investments were not supposed to be simply lent out. Rather they were supposed to strengthen capital ratios to allow banks to increase their loans by a multiple of the capital injection. $1 in capital supports several dollars in deposits and loans.

An even bigger problem is that it is impossible to know which dollars got spent for what.  It is being made up out of whole cloth.  I would be harsher, but someone made them do it.

As I discussed in an earlier post, Elizabeth Warren, of the Congressional Oversight Committee insisted on accountability.  This is what she got.

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