Citi Broke But Still Insist On A $50 Million Jet

Absolutely ludicrous!

• NEW YORK/WASHINGTON: Citigroup Inc, which has received US$45 billion (US$1 = RM3.62) of capital from the US government, is going through with plans to buy a US$50 million jet, but a US senator called the deal absurd and wants the Obama administration to block it.
  
  The bank signed a contract several years ago to buy a Dassault Falcon 7X and plans to accept delivery later this year, according to a person familiar with the matter.
  
  Citigroup said in a statement that refusing delivery now would result in millions of dollars of penalties. The bank also said it is selling existing aircraft, the proceeds of which will more than pay for the new plane.
  
  The New York Post, which was first to report the bank was still buying the new plane, said earlier on Monday that Citigroup was selling two jets estimated to be worth US$27 million each.
  
  In Washington, the White House frowned on the purchase with a spokesman saying President Barack Obama does not believe "that's the best use of money" by companies that are receiving taxpayer assistance.
  
  Citigroup said it is not using funds it received from the government's Troubled Asset Relief Programme to pay for the jet and it will continue to comply with all TARP requirements.
  
  The new jet will be more fuel-efficient and will lower Citigroup's operating expenses, the bank said.
  
  Seator Carl Levin, a Michigan Democrat, wants the Treasury Department to block the sale.
  "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," Levin said. - Reuters

Source: here