Citigroup Inc.

CollateralCash collateral available to the Company to reimburse losses realizedunder these guarantees and indemnifications amounted to $35 billion and$31 billion at December 31, 2010 and December 31, 2009, respectively.Securities and other marketable assets held as collateral amounted to$41 billion and $43 billion, respectively, the majority of which collateral isheld to reimburse losses realized under securities lending indemnifications.Additionally, letters of credit in favor of the Company held as collateralamounted to $2.0 billion and $1.4 billion at December 31, 2010 andDecember 31, 2009, respectively. Other property may also be available to theCompany to cover losses under certain guarantees and indemnifications;however, the value of such property has not been determined.Performance riskCitigroup evaluates the performance risk of its guarantees based on theassigned referenced counterparty internal or external ratings. Where externalratings are used, investment-grade ratings are considered to be Baa/BBBand above, while anything below is considered non-investment grade.The Citigroup internal ratings are in line with the related external ratingsystem. On certain underlying referenced credits or entities, ratings are notavailable. Such referenced credits are included in the not rated category. Themaximum potential amount of the future payments related to guaranteesand credit derivatives sold is determined to be the notional amount of thesecontracts, which is the par amount of the assets guaranteed.Presented in the tables below are the maximum potential amounts offuture payments that are classified based upon internal and external creditratings as of December 31, 2010 and 2009. As previously mentioned, thedetermination of the maximum potential future payments is based onthe notional amount of the guarantees without consideration of possiblerecoveries under recourse provisions or from collateral held or pledged.Such amounts bear no relationship to the anticipated losses, if any, onthese guarantees.In billions of dollars as of December 31, 2010Maximum potential amount of future paymentsInvestment Non-investment Notgradegrade rated TotalFinancial standby letters of credit $ 58.7 $13.2 $ 22.9 $ 94.8Performance guarantees 7.0 3.4 3.3 13.7Derivative instruments deemed to be guarantees — — 8.1 8.1Loans sold with recourse — — 0.4 0.4Securities lending indemnifications — — 70.4 70.4Credit card merchant processing — — 65.0 65.0Custody indemnifications and other 40.2 — — 40.2Total $105.9 $16.6 $170.1 $292.6In billions of dollars as of December 31, 2009Maximum potential amount of future paymentsInvestment Non-investment Notgradegrade rated TotalFinancial standby letters of credit $49.2 $13.5 $ 26.7 $ 89.4Performance guarantees 6.5 3.7 3.7 13.9Derivative instruments deemed to be guarantees — — 7.7 7.7Loans sold with recourse — — 0.3 0.3Securities lending indemnifications — — 64.5 64.5Credit card merchant processing — — 59.7 59.7Custody indemnifications and other 26.7 — — 26.7Total $82.4 $17.2 $162.6 $262.2281