(Corrects to ‘billion’ in fourth, fifth paragraphs.)

Jan. 11 (Bloomberg) -- Senator Carl Levin, chairman of an investigative panel, said he’ll issue a subpoena to the U.S. Treasury Department to obtain a contract with Citigroup Inc. for $25 billion the bank received from a federal bailout program.

The Treasury Department has provided only a form that it requires recipients to fill out without turning over the contract, Levin, a Michigan Democrat, told reporters at the Capitol today. Citigroup got the funding under the Treasury’s Troubled Asset Relief Program in October.

“I’m going to subpoena a document which should not have to be subpoenaed,” said Levin, chairman of the Permanent Subcommittee on Investigations. “I want to see whether the actual contract with Citibank is the same as the form.”

The demand, which Levin said he’ll issue to the department this week before its leadership turns over to President-elect Barack Obama’s team, reflects the ire of Democrats who say the Bush administration botched accountability for the $700 billion financial-rescue program. Lawmakers are demanding stricter terms before considering releasing the second half of the funding.

“I want to see what commitments were made before we vote on another $350 billion,” Levin said before Democrats met behind closed doors with Obama advisers on an economic stimulus package.

Questions Terms

Levin questioned whether financial institutions had to submit to terms as strict as were laid out for automakers that received part of the rescue funding. He said he wants to see whether they had to meet conditions such as revising mortgages so that homeowners facing possible foreclosure could stay in their homes.

Treasury officials weren’t immediately available to comment. Shannon Bell, a spokeswoman for Citigroup, declined to comment immediately.

Levin said he also has made the same request for documents related to insurer American International Group Inc. He said he’s not sure whether he’ll issue a subpoena for that contract.

Treasury Secretary Henry Paulson allocated most of the first $350 billion of TARP for buying stakes in banks, with other distributions to aid automakers General Motors Corp. and Chrysler LLC.

To contact the reporter on this story: Viola Gienger in Washington at vgienger@bloomberg.net.

Last Updated: January 11, 2009 19:11 EST