Doug,

On the one hand I suppose there is some risk in loaning the money. On the other hand isn't that their chief means of turning a profit? I mean sooner or later the government will have to stop funding their operatons, won't they?

If lending money is too risky, maybe they should just close the doors and save the taxpayes a lot of wasted money.

Amen Brother al.

That taxpayer money can't all be saved for executive profits.

Dumping the corporate jet was also a good idea, now let's drop the naming rights to the Mets' stadium.

If Citi is going to use $36.5 BILLION of the money that was "GIVEN to them by the U.S. Government", how much "risks" are they taking? Wasn't that the intent of the government "bail out" monies? Congress is at fault for having issued the "bail out" monies without restrictions and requiredments in regard to the corporations use of the "bail out" monies. This unequivocally demonstrates that Congress is INEPT, INCOMPETENT, and/or just plain "CORRUPT".

So, the expressed intent of the injection of the "bail out monies" was to stimulate loans to businesses and individuals, right? What would have happened to Citi if it had not received the BILLIONS of dollars in bailout monies? . . . Would Citi have collapsed financially? So, Citi is ONLY DOING what the money "loan" was intended to be used for, right? The question is why aren't the other banks being required to use the monies for issuing loans to companies and individuals to stimulate economic activity?

Well, the $350 BILLION in "bailout" monies was specifically intended to stimulate bank lending to companies and individuals; but as noted, once they got the bailout monies most banks were reluctantant to do that. Instead they have haorded the monies or used it to purchase other banks. What a SCAM; and what CORRURPTION by an irresponsible Congress.

Isn't it unequivocally obvious that the CEOs are simply "gaming the bailout" and milking it for evey last dollare of exorbitant salaries, bonuses, and other compensations that they can squeeze out of the system? The CEOs are ALREADY wealthy for their ill gotten gains from the BLATANT FRAUDS that they have orchestrated and perpetuated duing the last decade . . . they are just trying to milk the system for as long as they can. Most of these unscrupulous CEOs should be indicted, prosecuted, and then imprisoned for lengthy periods. Congress is simply too complicit in all of these CORRUPTIONS to do anything about it.

As Mr Harrison has amply said - the original intent of all this cash infusion into the banking system was to stimulate lending.
I agree.
The main problem is that Congress did NOT loan the money with this string attached. Neither did all of the money released thru the Federal Reserve. The intent was to eliminate the "credit crunch" by guarantee of government funding, by which the bank(s) would have no fear of failure.
Unfortunate as it is, the reality was that the money was loaned to incompetent executives that are at the root of all ills and consequently, they reacted poorly and sat on the money. This is the crux of the entire mess and what has thrown, not only our economy, but that of the entire world, into looming chaos.
There is a potential way out and the proposed actions by Citi are that course. If the government and the boards of directors of all lenders would press the executives to do their jobs - which is to lend, things might begin to change. If this cannot be achieved, than fire those in charge and get someone who will. Many hurdles will remain and a turnaround will still take years, but without immediate and forceful action a major depression will result.