24 hours after receiving $45 billion in tax funds, Citigroup caves in and abandons plans for their $50 million corporate jet upgrade from France. Citigroup already has 2 other corporate jets and a helicopter. Obama called them personally and told them to "fix it." Hell yes, if we are going to give Citi our money, they better not be spending it all crazy. They will just have to get by with 2 jets and helicopter. ---------------------------------------------------------- The high-flying execs at Citigroup caved under pressure from President Obama and decided today to abandon plans for a luxurious new $50 million corporate jet from France. The bank used TARP funds to purchase a new corporate jet for executives. The decision came 24 hours after the banking giant, which was rescued by a $45 billion taxpayer lifeline, defended buying the state-of-the-art Dassault Falcon 7X -- one of nine to be flying in U.S. skies -- as a smart business deal. The jet, the epitome of corporate prestige and privilege, can carry 12 passengers in elegant comfort. ABC News has learned that on Monday officials of the Obama administration called Citigroup about the company's new $50 million corporate jet and told execs to "fix it. Earlier on Monday, White House spokesman Robert Gibbs said made it clear ABC News asked him about the jet that the president disapproved of the deal. "The president said this during the transition, as it related to the auto companies using private jets: [He] doesn't believe that's the best use of money at this point," Gibbs said. The company today issued a statement saying, "We have no intent to take delivery of any new aircraft." Citigroup had argued it was selling two of its four other planes to pay for this one, that the new jet would be more efficient and, besides, it had already signed a contract for the jet. Breaking that deal would cost the bank millions in penalties. The Citigroup air fleet will now shrink from four jets and a helicopter to two planes. Citigroup was apparently not deterred from shopping for a new jet despite the outrage that erupted when Detroit's auto barons used private jets to fly into Washington to plead for handouts. The giant carmakers later got rid of their jets after being granted a $17 billion financial lifeline in taxpayer cash.
what a bunch of idiots running the show at Citi. Give me a break. In this instance, Obama has done something right.
Here's the jet. It's the Dassault Falcon 7X. I was wrong about Obama calling personally. He had an aide call them. $50 million luxury jet, there are only 9 Dassault Falcon 7X jets that fly in the USA. It's very exclusive.
HAHAHAHAHAHA they got TARP and decided to best spend the $$$$ they were gonna order executive jets? FROM FRANCE????
To be fair, they ordered it years ago, and have to pay millions to break that contract (which is what they are doing). They claim the new jet was going to save them money in the longrun, but I imagine that uses some pretty silly math (ie, saves money over 50 years! or something).
This is an absolute moronic move by Obama -- real presidents don't mess with the minor affairs of day to day business in America.
Any money should come with potential penalities for executives that waste it. Audit them and tell them stuff like this can lead to jail time....if you want the money you have to agree to more prudency and oversight until it is paid back. DD
