Banks May Reluctantly Back Bankruptcy Bill

Citi has helped approximately 370,000 families avoid foreclosure since early 2007, it noted in the letter.

Other banking institutions including JPMorgan Chase (JPM Quote) and Bank of America (BAC Quote) have also initiated programs to help struggling borrowers, as have Fannie Mae (FNM Quote) and Freddie Mac (FRE Quote).

David Trone, an analyst at Fox-Pitt Kelton Cochran Caronia Waller, says that the "incremental losses" from the legislation could be "capped" for Citi "due to the government's risk guarantee on these mortgages," he writes in a note.