Citigroup CEO Vikram Pandit came to the House Financial Services committee yesterday to talk about their use of TARP money. While people have their eye on the bailout money, what the Federal Reserve is doing is actually much larger and more scary. The Federal Reserve has guaranteed over $200 billion of Citigroup's toxic assets, in return for $7 billion in warrants that are probably worthless. Bulldog Congressman Alan Grayson spent about five minutes questioning Pandit and taking this farcical deal apart. He forced Pandit to admit that this arrangement gives taxpayers the downside and Citigroup all the profits.