westvirginia Posted January 26, 2009 Share Posted January 26, 2009 They bought a $50MM corporate jet from a French company with their $45MM bailout... when I wore my first dressing El Guapos Quote Link to comment Share on other sites More sharing options...
muck Posted January 26, 2009 Share Posted January 26, 2009 In some ways I have no problem with them deciding to keep their promise. However, they (probably) would have been better off to cancel the order for the new jet and sell the oldest of their two other jets. Quote Link to comment Share on other sites More sharing options...
Furd Posted January 26, 2009 Share Posted January 26, 2009 I received 2 notices last week: Capital One is closing my CC account with them for lack of use. Citi raised the limit on my CC with them. I'm not sure what this means, other than Capital One pissing me off. Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted January 26, 2009 Share Posted January 26, 2009 They bought a $50MM corporate jet from a French company with their $45MM bailout... when I wore my first dressing El Guapos its bad, its not as bad as your title infers.....the bailout they received was $45B, not $45MM. Thus, the cost of the jet does not exceed the bailout. Carry on. Quote Link to comment Share on other sites More sharing options...
westvirginia Posted January 26, 2009 Author Share Posted January 26, 2009 its bad, its not as bad as your title infers.....the bailout they received was $45B, not $45MM. Thus, the cost of the jet does not exceed the bailout. Carry on. Oh yeah. My bad! Quote Link to comment Share on other sites More sharing options...
TimC Posted January 26, 2009 Share Posted January 26, 2009 If I steal $1,000 from 100 people, I'll have that ZR1 yet. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 26, 2009 Share Posted January 26, 2009 its bad, its not as bad as your title infers.....the bailout they received was $45B, not $45MM. Thus, the cost of the jet does not exceed the bailout. Carry on. So WV's title WAS accurate - they are indeed spending their bailout money wisely since they're only forking over 0.1% of it on a luxury jet. I'm so happy for them, I think I'll send them a check for some fuel. Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted January 26, 2009 Share Posted January 26, 2009 I think I'll send them a check for some fuel. I have my first mortgage, home equity and a cc with them. I have your fuel donation covered. oddly, I'm not to concerned about the jet. I think every business has to decide on what it needs to do in order to earn more business. I imagine Citi needs to lure high $$$ business/partners in order to continue to grow, and likely felt they needed the jet to compete for these types of customers. I doubt they just decided to fork over $50M for a jet they flat-out didn't need.....and they are selling two existing jets for $27M each, so the net effect is essentailly nil. After just receiving a bailout, however, their timing was terrible. Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted January 27, 2009 Share Posted January 27, 2009 updated Citigroup will not take possession of new aircraft NEW YORK – Pressured by the Obama administration, Citigroup Inc. reversed course and said it will not take delivery of a corporate jet it previously planned to purchase. The canceled deal comes amid a chorus of concerns from politicians who are worried about how banks that have received federal funds are spending the money. Citigroup has received $45 billion in capital from the government in recent months amid the ongoing credit crisis. "Citi has no intent to take delivery of any new aircraft," the New York-based bank said in a statement Tuesday. An official in President Barack Obama's administration reached out to Citigroup on Monday to reiterate Obama's position that such jets aren't "the best use of money at this point," and are "an outrageous use of funds" for a company getting taxpayer dollars, said a White House official who spoke on condition of anonymity to more freely describe private conversations. In a statement late Monday, Citi said it had placed a deposit in 2005 to acquire a new corporate jet, and said it didn't plan to use government funds for the purchase. The New York-based bank noted that any cancellation of the deal would likely lead to millions of dollars in penalties. On Monday, the New York Post reported that Citi was set to take possession of a new corporate jet, and was still planning to receive it even after it received the government funding. With the cancellation of the deal, a deposit on the jet will be lost, but is recoverable once the jet is sold, according to a person familiar with situation. Citi was in the process of purchasing a Dassault Falcon 7X for $50 million, the person said. Aside from not taking control of a new jet, Citi is also planning to cut the number of corporate jets in its existing fleet to two from five, said the person, who asked not to be identified because those details haven't been made public. Quote Link to comment Share on other sites More sharing options...
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