Citigroup: No TARP funds used for jet

Gimme a break.

Money is fungible. If you spend it on one thing, you can't spend it on another. Whether the actual money, in terms of specific, serial-numbered U.S currency, that comes in the door via TARP funding goes to Dassault for the jet is immaterial; Citigroup spending their own money for the jet means that TARP funds will have to go to things that Citigroup could have paid their own money for otherwise.

Wow! In these tough economic, diastrous times, Citigroup is taking delivery on a new plane. The rest of the economy is in the toilet but they are getting a new plane.
Thousands are losing their homes but they are getting a new plane. Must be nice.

If they have 50 million dollars for a jet that seats 12 people, then they really don't need any taxpayer money.

I just received my statement for a Citicard and imagine my surprise when I noticed my interest rate had increased 10% points. I contacted them and they had no other reason for the increase except that they could. I can't believe they can get away with this conduct. Maybe they will pay for the jet with all the extra interest they will be pulling in.

Let's see if I got this right. If no tarp funds were used for the purchase of a 50 million dollar business jet then one of two things apply, first they didn't
need bailout money, or they are not acting responsibly. And if they are not acting responsibly they don't deserve any bailout money,This whole situation with corporations, states, and individuals with their hands out, is completely out of hand. Stop the madness.

Does anyone really understand economics - it seems that most of us are economically illiterate. The politicians talk about economics in terms of politic. Business folks talk in terms of general ledgers.

http://thefiresidepost.com/2009/01/27/economic-illiteracy/

No TARP funds were used. Right. But, that $50 million that Citigroup already had could have been used for something else. "millions of dollars in penalties" is their excuse? The penalties are far less than the cost of the plane. To Citi, $50 million is a drop in the bucket. With TARP, there is no incentive for Citi to do something to get themselves out of trouble. The taxpayers will pay in the form of TARP grants.

The TARP requirements are a joke. No accountability required; spend freely; don't document the spending..

And they will ask for more. And, Congress will give.

Sickening.

The media needs to keep this news in the front pages and push for accountability. Our government thus far has not.

Let's see if I got this right! If they did not use tarp funds for the purchase if a 50 million dollar business jet, then one of two things must apply. Either they are not acting responsibly and bought a jet with utter disregard for the shareholders, or they really are not in need of bailout money. How about bringing back"Common Sense".

Citigroup buys new jet? What else could we expect to hear out of Marxist Socialist Venezuela? Capitalism is pure and perfect. We should spread it around the globe and lift all regulations. Unfettered capitalism would never do something like this.

Look - folks, get a grip on reality. People who run huge companies should be worth the time-savings of operating their own company aircraft. Think about it; do we really want our business leaders wasting time - loads of time, flying commercial aviation when they can cut the dead time by many hours if/when they use their corporate planes? If these 'leaders' are our best and our brightest [OK, so, that's open to debate], we want {need} them to maximize their time for results. Grounding 'em with the rest of us simply can't be efficient. If the best we can shoot for is to bring 'em down to our level, we may as well just dumb the whole mess down to the most common denominator and accept the consequences.

They signed the contract in 2005. That was a long time ago, before any problems with the economy started. They are making good with the contract, which is what any good American company should do.

End of story.

Sounds like Citicorp has taken lessons from the Blago play book. When will a Citicorp rep be on the View? Glad I yanked all my personal and company money out of Citicorp.

Hey, Firmly Grounded. Please explain how people that run 'huge companies' save the rest of us time and money by using a private plane? How would it hurt the economy if they didn't? I don't understand your logic. I can only guess you were being sarcastic.

And congress just voted for Geithner, Treasury Secretary. He was the one who not only cheated on his taxes but oversaw the first distribution of TARP money to Citi with no "strings attached"
We need a lot more of this kind in out government???

Hey I agree with Firmly Grounded. Another aspect you may want to take into consideration is the folks who built the plane(manufacturer, part suppliers and the mass that goes with it) I work in the Aerospace Industry. Not taking delivery would put the people I work with out of work. We have already lost so many people to this madness. Besides the order was placed in 2005 money was already put down and the penalties don't cover all of the man hours spent to build the thing. Lets continue to support our working friends and family.

Maybe if they spent more time waiting on line at the airport, they'd have less time to screw up the economy. What a scam!

Hey I agree with Firmly Grounded. Another aspect you may want to take into consideration is the folks who built the plane(manufacturer, part suppliers and the mass that goes with it) I work in the Aerospace Industry. Not taking delivery would put the people I work with out of work. We have already lost so many people to this madness. Besides the order was placed in 2005 money was already put down and the penalties don't cover all of the man hours spent to build the thing. Lets continue to support our working friends and family.

Not only do they waste the taxpayers money but they waste it on a French plane.

Not only do they waste the taxpayers money but they waste it on a French plane.

This is unbelievable. I have been banking with CitiBank for 15 years. All my savings, CDs, and checking are with Citi. So yesterday I opened my American Airlines CitiCard statement to find out that my rate on the card was going from 7.015% to 14.99. I have had this card for 14 years and have paid off the balance at the end of every month. The last couple of months, I have not been able to completely pay off the balance due to the past high gas prices and now they have decided to increase my rate. This is unacceptable!!! Our tax money is bailing them out and they are increasing our rates? Are you kidding me? And now a new plane? If Government does not step in to stop this type of banking fraud, the banks will be able to do what ever they want with our money!
Do not give these idiots any more money!!! Let them pay higher rates during this time.
I am so upset by this practice I am willing to move all my banking to another bank!
Shame on you Citibank!!
Shame on you from a 15 year customer!!!!

This is like when you lend money to a sibling with drug problems. He says he spent it on the rent, but he used money he would otherwise spend on rent to buy drugs. So you subsidize his habit either way.

Apparently Hanretta thinks we're all stupid.

Does anyone really understand economics - it seems that most of us are economically illiterate. The politicians talk about economics in terms of politic. Business folks talk in terms of general ledgers.
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Can the business do adjustments and reclassify the money available in other departments instead. This fiasco is an embarassment and an insult. These high paying "EIEIO's" belong in sanitation department cleaning/clearing - which they are good at.

Dave said, "Gimme a break.

Money is fungible. If you spend it on one thing, you can't spend it on another. Whether the actual money, in terms of specific, serial-numbered U.S currency, that comes in the door via TARP funding goes to Dassault for the jet is immaterial; Citigroup spending their own money for the jet means that TARP funds will have to go to things that Citigroup could have paid their own money for otherwise."

DING! DING! DING!

It's just like when Daley tells us that no taxpayer funds will be used for something that he's paying for with, say, hotel tax revenues.

I must say that alot of people making comments about Citi are missunderstanding the situation.

The company purchased this Jet in 2005 when Citi stock was over 60$ a share. When Citi was making very good money. The company is the largest financial company in the world. Citi is worldwide, and employs hundreds of thousands of people worldwide. All large companies own private jets, hollywood actors own private jets and they have them for fun. Coprorations own jets for a reason. Citi has been selling the other 2 jets they own because they cost more in fuel, cost more to maintain. The money they receive for the other 2 jets they are selling will pay for the 1 jet that seats more is cheaper on fuel and cheaper to maintain. This is smart business sense that Citi purchased in 2005 !! If Citi does not take posession of this jet they will loose millions when ultimately they will be making money off of the sale of there 2 planes and the purchase of the 1. They will make 4 million. If they cancel this deal they will owe millions. This is not something that was just done, this was 4 years ago. The unfortunate part about financial companies are that when you have billions of dollars a year that Citi has loaned to americans and those americans claim bankruptcy or just never pay back the interest rates for every other american will go up. Citi is a high risk lending company for the most part. Lending money to people that are trying to get back on there feet or people that dont have the greatest credit. Then when the economy begins to go and people stop paying there bills and walk away from there mortgages the company loses money. I work for Citi and I am very scared of losing my job at the moment. I have seen about 200 people so far at my building get laid off with more to come. The bailout for Citi had rules behind it. Citi has to get out of the red and start making money again, the only way they can do that is to get rid of there high risk portfolios. When they eventually do that I will be out of a job and it will all have to do with this bailout. When I read about the jet purchase I was pissed, how can you lay my friends off then purchase a jet. But after reading and understanding this is not a recent purchase this will make sense and I suport it.

Does anyone really understand economics - it seems that most of us are economically illiterate. The politicians talk about economics in terms of politic. Business folks talk in terms of general ledgers.
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Can the business do adjustments and reclassify the money available in other departments instead. This fiasco is an embarrassment and an insult. These high paying "EIEIO's" belong in sanitation department cleaning/clearing - which they are good at.
Whatever happened to the Sarbanes Oxley Act.

Barney Frank the idiot at the top should be crucified - a crook indeed that led the other crooks - implementing "Do as you please" scheme.

-DISGUSTED-

It's time for another Boston Tea Party. Business using the government's monopoly on force is facism, pure and simple.

This citizen just calculated that his family of four is being extorted by these facists for more than $1000. Citibank is being notified that I, as a cardholder, refuse to accept this and that they must reimburse me the $1000 in TARP funds, or I will deduct it from my Citicard balance.

The worst they can do is ruin my credit, which will make me eligible for my own government bailout.

Harrumph.

BY ANY OTHER NAME, THIS IS DISRESPECT AND ABUSE, OF TAXPAYERS AND SHAREHOLDERS
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http://pacificgatepost.blogspot.com/2009/01/disrespecting-taxpayers-shareholders.html
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The White House and Congress continue with misguided policies, and incompetent distribution of taxpayer money.

Really the business jet helps most of the company CEOs marketing people to travel on time.