TARP Inspector General Asked to Investigate Citigroup and Bank of America
Donations to Rainbow/PUSH; Bailout Recipients Headline Jesse Jackson
Fundraiser

  PR Newswire

  FALLS CHURCH, Va., Jan. 15

FALLS CHURCH, Va., Jan. 15 /PRNewswire-USNewswire/ -- Today the National Legal
and Policy Center (NLPC) asked Neil M. Barofsky, the Special Inspector General
for the Troubled Asset Relief Program (TARP), for a formal review of the
sponsorship by Bank of America and Citigroup of the Rainbow/PUSH Wall Street
Conference currently taking place in New York City. The January 13-16 event is
one of two of Jesse Jackson's annual fundraisers.

According to official conference materials, Citigroup is a "Gold Sponsor," a
designation costing $50,000. Bank of America is identified as a "Silver
Sponsor," a designation costing $30,000.

Both Citigroup and Bank of America are major recipients of TARP funds.
Taxpayers are now Citigroup's largest shareholder after infusions of $45
billion. Bank of America has already received $25 billion. According to
today's Wall Street Journal, it is seeking billions more in order to make
possible its acquisition of Merrill Lynch.

NLPC's Complaint reads, in part:

"When the TARP was presented to Congress, Secretary Henry Paulson and others
argued that the situation was dire, and that the failure of major financial
institutions posed a systemic risk to our economy. The stated goal was to
unfreeze credit so that banks can make loans to businesses and individuals. It
was never contemplated that banks use their capital to make donations to
organizations founded by a controversial figure like Jesse Jackson.

It should be noted that shareholders have made objections to corporate
donations to Rainbow/PUSH and the so-called Citizenship Education Fund (CEF)
even before the onset of the financial crisis. CEF is a 501(c)(3) organization
founded by Jesse Jackson that co-sponsors the Wall Street Conference. In
recognition of these objections, the New York Stock Exchange itself ended its
financial sponsorship of the event in 2005.

Citigroup's management and board of directors cannot claim that it is unaware
of the donations to Jesse Jackson's groups, or that they have not sparked
controversy. Indeed, in remarks at the company's annual meetings in 2006 and
2007, I vigorously raised the issue in connection to our shareholder proposals
asking for disclosure of Citigroup's charitable contributions, a resolution
management opposed.

It should be further noted that Citigroup's relationship with Jesse Jackson
began under questionable circumstances that have contributed in part to
Citigroup's present problems and its need to seek taxpayer support. When
Travelers and Citicorp sought to merge in 1998, Jesse Jackson said he would
oppose the merger. Citigroup initiated financial support to his organizations.
Jesse Jackson changed his position and supported the merger. It was speculated
in the media that Citigroup's 'charitable' giving to Jesse Jackson's groups
did have a business purpose.

As shareholders, we have protested corporate support for Jesse Jackson's
organizations. Now that all taxpayers are shareholders in both Citigroup and
Bank of America, these donations are completely objectionable, and should not
be allowed. Unless you undertake a swift review of this matter, and take
appropriate action, public cynicism about the use of TARP funds for their
intended purpose will only increase."

NLPC promotes ethics in public life.

SOURCE National Legal and Policy Center

Website: http://www.nlpc.org
Contact: Peter Flaherty of National Legal and Policy Center, +1-703-237-1970

Last Updated: January 15, 2009 11:00 EST