High Flying Citigroup Grounds Plans for $50B Jet
@whiteheather39 (24403)
United States
January 27, 2009 8:22am CST
I am really glad to see Obama and his people have started cracking down on the companies who spend the bailout money on the wrong things. What is your opinion?
Obama Aide Called Citigroup to Complain About Jet
The high flying execs at Citigroup caved under pressure from President Obama and decided today to abandon plans for a luxurious new $50 billion corporate jet from France.
The bank used TARP funds to purchase a new corporate jet for executives.The decision came just 24 hours after the banking giant, which was rescued by a $45 billion taxpayer lifeline, defended buying the state-of-the-art Dassault Falcon 7-X -- one of just nine to be flying in America's skies -- as a smart business deal.
The jet, the epitome of corporate prestige and privilege, can carry 12 passengers in elegant comfort.
Citigroup argued that it was selling two of its four other planes to pay for this one, its execs would be more efficient with a new jet, and besides, they had already signed a contract for the jet. Breaking that deal would cost them millions in penalties.
http://abcnews.go.com/Business/Politics/story?id=6740011&page=1
2 people like this
6 responses
@Grandmaof2 (7578)
• Canada
27 Jan 09
Because I'm in Canada I suppose I should keep my pie hole shut, but because I'm on myLot I have the freedom to voice an opinion where I please. I think if Obama does all he says I'd say he's going to make one of the best presidents the country has ever seen. I just wish people would let his skin color go, who really cares? I thought we were to not be prejudice. He can't do anything for the country based on skin color. Personally I think he's a very intelligent man. I'd trade him for our prime minister in a heart beat, and believe me it's not because Obama has dark skin. I'm white and so is our prime minister Big Deal. Just my opinion, Thank You my friend.
1 person likes this
@whiteheather39 (24403)
• United States
27 Jan 09
I am white and my two great grandsons have black skin so believe me skin color does not bother me at all. I will reserve my judgment on how great a president he will be until he proves to me that his very veiled Muslim and racist church background not to forget his shady friends do NOT influence him in his leadership of this country.
1 person likes this
Great idea!!
@Lakota12 (42600)
• United States
27 Jan 09
If they are paying for it out of sales of the other 2 might be ok but do not use the bailout money for it.
and they arent very good deal makers to get penalized millions for canceling ! Dumb dumb dumb. I can do better dealing than that!
1 person likes this
@irisheyes (4370)
• United States
27 Jan 09
It's a start I guess. I think that to a man these banking giants have proven that they are not going to do anything without regulation. Hopefully, the next step will be to start putting back the banking regulations that were removed over the last 20 years. There is no honor system with these characters. FDR understood them very well and he kept them in line. I honestly think that the regulations he put in place were the firewall in our system against another great depression and the sooner we get those regs back, the better off we'll be.
1 person likes this
@grammasnook (1871)
• United States
27 Jan 09
Perhaps before they got the bail out money they should have been forced to sell the 4 jets they already had to get themselves out of trouble. After all the average american has to sell their things in order to survive why not them? Would flying coach be so bad? or even business class. No company needs a private jet!
@lilwonders456 (8214)
• United States
27 Jan 09
Well they wont get some of the bail out money back. They never should have ordered the jet in first place. I am glad Obama had someone call and complain. Maybe he needs to just assign one person to call all the others and complain to them too. Comparing just about all of them taht got bail out money the first time did not use it like they were supposed to.
1 person likes this
