Citi suspends foreclosures during holidays, raises funds to exit TARP

Citigroup announced today that it will suspend foreclosure sales and
distribution of foreclosure notices between Dec. 18 and Jan.17, giving
its customers a break for the holidays. For 30 days, the bank will not
hassle its distressed customers with first mortgage loans held by
Citigroup and CitiFinancial North. The suspension will affect nearly
4,000 homeowners who were set to either have a foreclosure sale or
receive a foreclosure notice during that period, which amounts to
nearly 20 percent of the company’s $746 billion mortgage portfolio,
according to Citigroup. The 30-day suspension announcement came one day
after the Treasury Department said it would not sell any of its stock
in connection with Citigroup’s offerings, disputing earlier reports
that it would sell up to $5 billion of its shares when the bank
completed its new stock offering. The decision subsequently caused
stocks to drop 7 percent to $3.22. However, Citigroup, which has been
one of the largest recipients of government aid, has reported that it
has raised the $20.5 billion it needs to exit TARP. [CNN]