Citigroup bailout contract set to be subpoenaed

Posted Jan 12th 2009 10:45AM by Zac Bissonnette
Filed under: Scandals, Citigroup Inc. (C)

Senator Carl Levin is planning to use the power of the subpoena to gain access to a $25 billion contract governing the doling out of bailout funds to Citigroup (NYSE: C).

So far, the Treasury Department has only provided the public with a form that recipients of bailout funds are required to fill out. "I'm going to subpoena a document which should not have to be subpoenaed," Levin told reporters. "I want to see whether the actual contract with Citibank is the same as the form."

It's hard to imagine what possible right banks like Citigroup have to privacy when they are showing up looking for taxpayer cash. Is there any reason why details on the terms shouldn't be made available? I can't think of one.

Levin said that he wants to see whether Citigroup was required to agree to helping homeowners avoid foreclosure.

Tags: Bailout, C, Citigroup, inthenews, Treasury Department, TreasuryDepartment

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Reader Comments (Page 1 of 1)

1-12-2009 @ 12:06PM

Mary Brents said...

That sounds great to me. I think a little double checking is in order. After all as we all know the Government and the Banks are not the best at telling the truth.