Lawmakers Agree CitiGroup is "Plane Crazy"

After the NY Post's outraged article on how CitiGroup was buying a $50 million corporate jet, politicians joined the chorus over how the banking giant is not really thinking straight. President Obama's press secretary Robert Gibbs said the president "doesn't believe [business jets are the] best use of money." Especially when CitiGroup is getting $45 billion in TARP funds, right?

Senator Carl Levin told the press, "The notion of Citigroup spending $50 million on a new corporate jet, even as it is depending on billions of taxpayer dollars to survive, does not fly. To permit Citigroup to purchase a plush plane - foreign-built, no less - while domestic auto companies are being required to sell off their jets is a ridiculous double standard." The Dassault Falcon 7X is a French-made jet that seats...twelve. Rep. Barney Frank added, "This sounds far plusher than called for in their circumstances."

Earlier, CitiFlight, which manages CitiGroup's fleet, refused to comment to the Post, saying, "Why should I help you when what you write will be used to the detriment of our company?" but now CitiGroup says it might explore leasing the plane. The Post has an editorial asking new Citi chairman Richard Parsons to "restore common sense to the company. His first order should be a no-brainer: Have CEO Vikram Pandit scrap the jet deal - today." And Taxpayer Field, anyone?

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By Jen Chung in News on January 27, 2009 10:25 AM

Comments [rss]

JacqueMehoff

there's this guy on gawker who defends the purchase

because it will bring in business or whatevs

Wza

Opening Day, the fans should begin a chant like "Ci-ti Sucks" or "Let's go tax-payers"

smacky

HA!

jackdonaghy

Well, Citi already spent millions on the Mets, so why not the jets.

Dirk

AP is reporting that Citi has now canceled the deal. They said they'll make do with only two private jets.

Can we castrate these guys already?

glob

The sad thing is that most of us normal people can not even wrap out heads around how much money $50 million actually is, all we know is that it is more than we will ever get a chance to see. That same $50M is only 0.1% of the astronomic sum of money included in their $45 BILLION TARP.

The $10M a year to the Mets is another drop in the bucket. Unbelievable.

Wickedson

Post website now claims that Citi has cancelled the plans to buy...

matty

Fuck parsons. The guy ran Time-Warner straight into the shitter and got a golden parachute and now he's the head of citigroup. The man gets rich off of taking good companies and ruining them.

Seriously, what a godamned embarassment. Fire them all and start over, investors.

NannyState

Dick Parsons is the guy that always shows up when the party's over to scarf the dregs. Time Warner was a burnt out hulk when he arrived and yes, he has no skills or abilities transforming wrecks into supercharged champs. But at least he appreciates good cabin pressure.

Lautaro

I am SO behind Taxpayer Field. Also, accounting for the distribution of TARP funds should be strict and detailed- particularly after all I've been hearing about the banks hoarding the money they've received instead of using it to ease the credit flow.

The NY Post is the Randy "Macho Man" Savage of New York tabloid newspapers. Oh, yeah.

Wickedson

Typical New York area behavior.

Come to the midwest, learn some freaking ethics. (and no, Chicago doesn't count as midwest)

Felix Hoenikker

Pulleezeee....

The right hand angrily wags finger for sound bite with righteous indignation.

The left hand meekly hands over large sacks of newly minted money.

Citi should be fully nationalized, lock stock and barrel.