Citigroup's $50 Million Plane
Last month, the AP mentioned that unlike the car companies that were feeling the heat over their private jets, bailed-out financial firms were still flying high. That run seems to be over with the news that Citigroup has spent $50 million on a Dassault Falcon 7X, which it ordered two years ago. The French jet seats 12 in leather seats and and has a top speed of 559 mph.
Michigan's senior senator Carl Levin was angry over the news. He sees the fact that Citigroup can buy a new jet while receiving a multibillion dollar bailout as a double standard since Michigan's automakers have been forced to sell their planes. Levin plans to ask new U.S. Treausry Secretary Timohty Geithner to do what he can to block the sale. So far Citigroup has received $45 billion in government funding. According o the NY Post, Citigroup is trying to sell two of their older Dassault 900EXs which are worth an estimated $27 million each.
The bank said it has reduced its number of aircraft dramatically over the past eight years and that it would have to forfeit a deposit if it did not take delivery of the plane (the same rationale Starbucks used to justify its new Gulfstream 550 jet). A spokesperson for President Obama commented that the President does not feel that this type of spending is the best use of taxpayer assistance.
UPDATE: After receiving pressure from the White House, Citigroup has decided not to take possession of the new plane.
Reader Comments (Page 1 of 1)
David Jan 27th 2009 6:37AM
Utterly shameless. As a stockholder, I am sickened.
Get rid of the management and nationalize them already!
BSDinSF Jan 27th 2009 1:53PM
David - do you realize the implications of nationalizing Citi? No offense, but I'm guessing by shareholder you mean a couple thousand shares?
The sickening thing is that instead of focusing on real problems with these firms and their worthless management the equally worthless idiots in Congress, who think a derivative is something you learn in calculus, are grandstanding talking about private jets and lavish office redecorations. When a company just lost $15bn I could care less that its CEO spent $65,000 on a new credenza last year.
The TARP program and the new stimulus plan, that even rational Keynesians would find hard to swallow, will go down in history as one of the greatest government fallacies. I wouldn't trust Barney Frank to flush the toilet after he disposes of some toxic tacos, but you want him managing global banks?
CK Dexter-Haven Jan 27th 2009 9:09PM
BSDinSF,
Well said...a tad strident, but well said. Not to mention accurate.
williambanzai7 Jan 28th 2009 10:19PM
PANDIT: GIMME A TICKET FOR AN AEROPLANE
(Gimme a Ticket for an Airplane, Don Williams)
WilliamBanzai7
Gimme a ticket for an aeroplane
I ain't allowed to buy a new French jet plane
Oh the good ol days are gone I'm a goin' coach
Tim Geitner jus' wrote me a letter
I don't care how much airport time I gotta spend
I got to go back to be bailed out once again
Oh the good ol' days are gone I'm a goin' slow
Tim Geitner jus' wrote me a letter
Well he wrote me a letter
Said he could live with one less Wall Street bailout whore
Listen mister can't you see
I gotta go back to get bailed once more
Any way yeah
Gimme a ticket for an aeroplane
I ain't allowed to buy a new French jet plane
Oh the good ol' days are gone I'm a goin' coach
Tim Geitner jus' wrote me a letter
Well he wrote me a letter
Said he could live with one less Wall Street bailout whore
Listen mister can't you see
I gotta go back to get bailed once more
Any way yeah
the vegas style guy Feb 11th 2009 7:59PM
LMFAO!