Thread: Citi Buying New $50 Million Corporate Jet

Citi Buying New $50 Million Corporate Jet

Monday, January 26, 2009 2:52 PM

NEW YORK -- Citigroup Inc, which has received $45 billion of capital from the government, is going through with plans to buy a $50 million corporate jet, a person familiar with the matter said.

The bank put in an order for the Dassault Falcon 7X two years ago and plans to accept delivery on the plane later this year, the source said.

Canceling the deal would have forced the bank to pay a multimillion-dollar fee, the person said.

Citigroup is selling two older Dassault jets, worth an estimated $27 million each, according to the New York Post, which was first to report that the bank was still buying the new plane.

Citigroup declined to comment on whether it was buying a new aircraft, but it said in a statement that it has strict policies regarding use of its aircraft, including encouraging executives to fly commercial whenever possible to reduce expenses. The bank said it has reduced its number of aircraft by two-thirds over the last eight years.

http://moneynews.newsmax.com/companies/ ... 75349.html

I just read an article about they and Bank of America on the verge of collapse with trillions in default swaps, derivatives and other toxic assets. As with this so called government logic, common sense, sanity and integrity have taken a permanent vacation replaced by greed, corruption, incompetence and failure.

Oh Obama! LOL....

Why can't these people fly commercial?

But if they didn't take delivery they'd have to pay a fee. so it still might be cheaper to take delivery and then just sell it. There's no way the government will let them keep it. As for these companies going bankrupt, if that happened trillions in Credit Default Swaps would come due. That would trigger a massive sell off in the stock market as they would have to come up with cash for most of them. That would send the market into another crash. Not a good idea.

Aw, gee guys. They worked very, very hard to sell mortgages to people with no chance of repaying, plotting the credit default swaps, loaning money they didn't have, demanding a federal (taxpayer) bailout. Having a brank-spanking new shiny jet would do so much for the morale of this beleaguered bank, especially when the workers afraid of losing their jobs can see the CEO flying overhead.