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January 27, 2009

White House Pushes Citi to Give Up $45M Jet

Change and accountability has come to the White House.  Can I get a collective “YEAH”!

The Obama administration pushed struggling Citigroup to reverse their decision after a Treasury Department official called the company on Monday and “told them it was unacceptable to accept delivery of a new $45 million corporate jet.

The move comes as new Treasury Secretary Timothy Geithner tries to quickly bring more accountability and oversight to the much- criticized TARP program he now oversees.

Citigroup has already received some $45 billion in government bailout funds, which is why a New York Post report about the scheduled delivery of the new jet sparked outrage.

White House Press Secretary Robert Gibbs said Monday the president believes private jets aren’t “the best use of money at this point” with America facing a financial crisis.

Citibank spokesman Michael Hanretta said on Tuesday that the company has “no intent to take delivery of any new aircraft.” This came after the company initially said on Monday it could not comment on whether it was purchasing the jet, citing security reasons.

Hours later after the Obama administration contacted them Citi reversed course, issuing a statement saying it signed a contract in 2005 for a replacement aircraft as part of a plan to reduce the number of planes it owns and cut operating costs. “Refusing delivery now would result in millions of dollars in penalties”. “Citi is exploring all its options for these assets, including the potential sale or lease of the aircraft.”

The luxury jet that was to be purchased is a Dessault Falcon 7X, which seats 12. It is so exclusive that Dessault says only 21 are operating around the world, and that the price is listed at $45 million.

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3 Comments »

  1. I just stopped by your blog and thought I would say hello. I like your site design. Looking forward to reading more down the road.

    Comment by Bill Cash — January 27, 2009 @ 9:40 pm | Reply

  2. Well, Well, Well

    Citicorp got caught with it’s hand in the cookie jar trying to spend 45 million on a luxury jet at a time when many Americans are trying to hold on to homes, jobs and and make ends meet! If they need a bail out, which they did get at the tune of 45 billion dollars, why would they turn around and spend 45 million on a luxury jet? How fiscally irresponsible! By the way they canceled my credit card for a measly $1600.00. I’ve always paid them on time, never missing a beat,always sending much more than the minimum payment. Their reason-my balances were too high. I meet all of my obligations each month with money left over for living expenses. The real reason for their decision is that they are in trouble financially! So therefore they want to mess up my credit! Cheap Shot!

    Comment by Greg Hollier — March 4, 2009 @ 10:00 pm | Reply

    • Greg – I no longer trust banks. I have spread out what little money I have in different banks so that if one bank goes under I still have some cash flow before the FDIC comes in.

      These banks won’t even give customers like you and me a second chance if we make a mistake but look at the colossal mistakes they have made! They have ruined our economic systems as we know it.

      These banks, investment companies and insurance companies have been lying for years. They have obviously been cooking their books to show a profit so the bigwigs could get their bonuses for tens of millions of dollars.

      They have to pay for this – it’s not fair.

      If some guy who had no money robbed someone for $100 he would go to jail if caught.

      These banks have robbed millions of Americans of their life savings including their stockholders and people whose homes have lost its value because of bank executives’ poor decision making. They took outrageous risks and were poor guardians of our monies. I am pissed.

      Comment by Paulette — March 5, 2009 @ 4:24 pm | Reply


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