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Two Ways: Is Citi the Lender of First Resort?

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Strengthen your portfolio in good times and bad.

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Citi Shells out TARP

After receiving $45 billion of TARP (Troubled Asset Relief Program) funds, Citigroup (C) will use $36.5 billion of it to lend to consumers and companies, as well as to fund mortgages. According to Bloomberg, $2.5 billion will be allocated for consumer loans, $1 billion for student loans, $5.8 billion for credit cards, $1.5 billion for corporate loans and the balance, $25.7 billion, will be used to fund US mortgages.

This comes a day after Congressman Barney Frank, chairman of the House Financial Services Committee, said President Obama will require banks to make more loans in return for aid. For additional context, see Toddo's Random Thoughts.

From the Bull Pen: In the financial sector, have a look at the daily chart of Morgan Stanley (MS). Toddo noted the stock breaking above $20 resistance on the Buzz yesterday. One can set an initial position here with a sell stop near $19.

From the Bear Cave: Bears can consider Moody's (MCO), possibly breaking $20 support in the near future. One can set an initial downside position here with a buy stop above $24.


Quick Check Around the World

Asian trading closed with the Hang Seng -0.66%, Nikkei -0.62%, Sensex 0.91%, Taiwan 2.65% and Shanghai 2.44%.

Glancing towards Europe, we see the CAC +0.11%, DAX +0.33%, FTSE +0.28%

As of 8:05 a.m. EST, S&P futures are trading +1 to 822.00, and Nasdaq futures are +5 to 1193.00.


A Look At Commodities

Crude oil is trading +0.42 to 40.50. Gold is -0.70 to 906.50. Silver is -0.65 to 12.350, and copper +2.80 to 145.90.

The dollar index is -0.0400 to 86.4400.


On the Radar

Economics

10:00 Pending Home Sales MoM 0.0%

Click here for the full trading radar.

Good luck and have a great day!

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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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