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Two Ways: Is Citi the Lender of First Resort?


Strengthen your portfolio in good times and bad.


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


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.

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