by Frank James
Memo to Citigroup: You might want to get your crisis-management people cranked up because Washington is up in arms about reports that the troubled financial-services giant which received a $45 billion federal bailout still intends to take delivery of a $50 million corporate jet that seats12 passengers.
As Reuters reports, Sen. Carl Levin is demanding that the Treasury Department order Citigroup to reverse its decision:
An excerpt:
"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," said Levin, a Michigan Democrat and staunch supporter of the auto industry, in a statement.
Levin, of course, represents the Detroit Three automakers who were excoriated when their chief executives flew, each in his private jet, to Washington late last year to ask for a bailout.
Meanwhile, another bailout recipient, AIG has been raked over the coals for sponsoring pricey retreats at luxury resorts.
Citigroup's new chairman, Richard Parsons, former CEO of Time Warner, is very savvy in the ways of Washington, serving on both President Barack Obama's transition economic advisory board and President Bush's Social Security reform commission.
It's fairly obvious that the jet will be such a loud distraction that Washington won't be able to hear anything else Citigroup has to say until something is done about it.
So Parson's will definitely be under growing pressure to ditch the jet unless there's some extraordinary reason to keep it that will be acceptable to the Obama Administration, lawmakers and the public. Needless to say, that's going to have to be one heckuva an explanation at this point.
Comments
Citigroup also gave $8 million to Barry's Coronation held on 1/20, just in case the media cares to report that.
Posted by: BDD | January 26, 2009 4:28 PM
i want my tax dollars back. Now! How about this idea: instead of electing politicians who decide where our taxes go let the tax payers choose from a list of programs to which thier hard earned taxes will be spent. for example, one might choose to direct all their taxes entirely to education. zero toward war, big oil, greedy banks, lobbyists, earmarks, certain types of foreign aid, pie in the sky fancy space lasers, etc......
Posted by: Cheated | January 26, 2009 4:48 PM
BDD, you greasy pugs are just drawn to fabricataion aren't you?!? Please post your source link for your "news", otherwise you are just another name for Bruce.
Obama's donor list: http://www.pic2009.org/page/content/donors/
News article: http://www.huffingtonpost.com/2009/01/14/bailed-out-banks-donating_n_157960.html
And no where is there mention of the Citibank company donating any money. So long Bruce, keep your crazy posts for the faux blogs.
Posted by: Xcellentform | January 26, 2009 5:07 PM
As long as they need a bailout from the American taxpayer, they should not indulge in any luxuries. Let them take Southwest Airlines.
Let them hear your voice: https://www.citibank.com/citigroup/contact/form.htm
Posted by: D.A. | January 26, 2009 5:25 PM
PANDIT's LEAVING ON A JET PLANE
(Leaving on a Jet Plane, Peter Paul and Mary)
WilliamBanzai7
Well half my Board's been sacked, now Im ready to go
Im standing here just another bailout schmo
I hate to wake you up to say goodbye
But the dawn is breakin, its early morn
The brand new $50 million Dassault Falcon is waiting,
Already Im so loathsome I could cry.
Chorus:
So kiss me and smile for me
Tell me that you don't hate me
Hold me like youll never let me go.
Im leavin on CITI's brand new jet plane
I dont think Ill be coming back again
Oh, babe, I really hate to go.
Theres so many times I've let my shareholders down
So many times Ive behaved like another Wall Street clown
I tell you now, they dont mean a thing
Every place I go, I bring bad news
Every course I sing is the bailout blues
When I turn back, I know I'll once again get zinged.
(chorus)
Posted by: williambanzai7 | January 26, 2009 5:28 PM
where are these companies getting the gull to spend like they are doing with taxpayer bailouts? Why is our governmen officials not doing something about all this wasteful spending. Then they think giving the social security receipiants $300.00 is a big deal. Live in our world crooks
Posted by: barbara | January 26, 2009 5:29 PM
While Citigroup technically didn't give a donation, its employees did. Barry has learned well, the Chicago way - funnel money indirectly with intentions of payback and favors. These executives of Citigroup should be taking a paycut instead of giving "extra" money of theirs for a party. As long as they are relying on taxpayers to bail them out, they should be sacrificing just like us regular folks are.
Posted by: D.A. | January 26, 2009 5:39 PM
Niiiiiiice....and yet we heard all of that whining about the auto CEO's using private jets....
We need to quit kissing the butts of these Wall Street criminals who run their business's like a casino. They don't give a damn about anything other than making themselves and their pals stinkin' rich and screwing everyone else.
Posted by: Anti-Establishment | January 26, 2009 6:04 PM
Xcellentform, you count Huffington Post as a "news" source? Good luck trying to convince people of your point when you cite them.
http://online.wsj.com/article/SB123146096981566339.html
Posted by: Sean | January 26, 2009 6:07 PM
News sources other than Reuters report that Citigroup would be required to pay millions in damages should they refuse delivery of the plane for which they contracted, in return for nothing. That's poor business, but apparently good politics.
Posted by: Mac | January 26, 2009 6:27 PM
Sean, the burdon of proof lies with Bruce/ BDD up top, I was just pointing out the craziness of this pugs post. Even your WSJ story supports my points, and it does not even talk about Citigroup directly.
On topic, I think it is time to either let these big banks fail or nationalize them. But letting them conduct business as usual will kill this country.
Posted by: Xcellentform | January 26, 2009 6:28 PM
Wow, what do you get for $4,166,666.70 a seat??? Do they serve peanuts?? Curious minds want to know.
Posted by: Carmie | January 26, 2009 6:35 PM
Bailout waste has started, the taxpayers get higher taxes down the road a, plus the cost of living will go up. nothing for nothing.
Posted by: Inky | January 26, 2009 7:43 PM
I think that the appropriate response is one that had been suggested in the press last fall and should be done now since Paulson did not not force the issue. The CEO needs to be fired. The board needs to be relieved of its duties.
The operation in this particular case is rotten and many of the good people have already left. Though it is not a solution to Citi's problems, it is a step in the right direction. Pandit's departure is overdue.
Posted by: Ron M | January 26, 2009 10:10 PM
I was a 20 year customer of banks that were eventually purchased by Citigroup. When Citigroup took over, I had to get the hell out of there and closed 5 personal and business accounts. You can feel their arrogance down to the teller. I know it is hard to beleive, but I think its obvious. I've had a much better experience with Wells Fargo, for instance. I think that if the CEO and the guy in charge of approving the plane are not fired immediately, don't give them anymore money and let Citigroup fail if that has to, and give the money to other banks that have been more fiscally responsible. They are out there.
Posted by: Ray | January 26, 2009 11:47 PM
To tell the truth I'm not surprised at all. Only time will show if it was a right step. Well, when I was reading this article I remembered The Finansist by Theodore Dreiser. If you haven't read it you are sure to do it. You can easily find the book or audio book at rapidshare search http://rapidpedia.com . Well, he depicted everything. It seems to me, that everything in politics remains the same.
Posted by: Bill | February 19, 2010 8:05 AM
Bailout waste has started, the taxpayers get higher taxes down the road a, plus the cost of living will go up. nothing for nothing. If you haven't read it you are sure to do it. You can easily find the book or audio book at rapidshare search http://evildrome.com
Posted by: rapidshare | June 27, 2010 5:31 PM