Banks that received TARP funds are in something of a pickle. We've noted before that they face conflicting mandates: On one hand, the government has every right to want to see taxpayer money being used to stimulate the economy; on the other hand, the recession puts a premium on sound lending measures.

It will be hard to satisfy the government, credit officers and shareholders on the issue of expanded lending, but that is the task facing all banks. Perhaps to appease its many critics, Citi has set up a new committee designed to "help ensure that TARP money is being used to help boost lending," according to a memo obtained by Reuters. The committee will oversee, approve and monitor how the TARP money is used. That doesn't sound like a fun job at all.

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