Are you aware that most of the big banks who got bailout no more lend and have choked lending to people?

My father applied for a $10000 loan to citibank (which was given bailout) to cover medical treatment for chemotherapy because his employer dropped health insurance. He makes $60K an year and has very good credit score, but citibank declined the loan without giving reason. When asked why loan was denied they said, "we have discretion" . My father has no debt on him and always pays all his bills on time. And its highly curable early stage infection. Why bailout them, when they are so tight on providing credit to people? the entire bailout purpose is defeated.