Resources toward recovery.

We are watching closely the economic impact of the oil spill in the Gulf of Mexico. The full repercussions aren't known yet, but the crisis is already exerting a significant financial stress on many people in the region. When our customers began contacting us about the effect the spill is having on their jobs, businesses and finances, we looked at what we could do to ease the burden. That led us to announce on June 17 a three-month suspension on foreclosure sales and notices for eligible borrowers in the hardest-hit coastal areas. As I told reporters who covered the details of our announcement, Citi expects the program to benefit about 1,200 customers initially, though the number could climb. We hope to help as many eligible borrowers as possible with this initiative.

Homeowners in Florida, Louisiana, Mississippi and Alabama, like many regions of the U.S., are also simply struggling with hardships of the recession. Since the housing crisis began in 2007, we have developed a range of homeowner assistance programs to help distressed borrowers in their efforts to avoid potential foreclosure and remain in their homes. To date, Citi has provided forbearance, extensions, modifications, repayment plans and other forms of assistance to more than 900,000 mortgage customers. What is more, it is our practice not to initiate or complete a foreclosure sale on any eligible borrower when the following criteria are met: CitiMortgage owns the mortgage; the borrower is seeking to stay in the home, which is his or her primary residence; the borrower is working in good faith with Citi; and, the borrower demonstrates sufficient income for affordable mortgage payments. It is an unsettling time, and we want to be an integral part of helping those in need. We remain focused on economic recovery and what Citi as a company can do to encourage it.