Citigroup Buys $50 Million Jet…Thanks for the Bailout

Tuesday, January 27, 2009
Dassault Falcon 7X Interior

According to recent reports, Citigroup, one of the biggest recipients of bailout (TARP) funds, is purchasing a brand new $50 million Dassault Falcon 7X corporate jet for its executives. This news, if true, could put the bank in an awkward position considering that it received $25 billion under the original payout late last year and received another $20 billion after its stock started to sink in November. It also got the government to guarantee some $306 billion in troubled assets on its books. To be fair, Citigroup has made efforts to cut back its fleet and restrain executives from using its jets inappropriately. Citigroup is also currently in the process of selling two of their older models. In addition, according to a source in the corporate aviation business, it is not uncommon for large companies to pay a deposit on a new plane then cancel the order before delivery. However, considering that representatives from Citigroup declined to comment on the issue, the bank may not deserve the benefit of the doubt.

Citigroup Likely to Face Criticism Over Jet (by Cyrus Sanati, New York Times)
Just Plane Despicable (by Jennifer Gould Keil and Chuck Bennett, New York Post)


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