Rescued Citigroup Shelling Out $50M for Corporate Jet...

[stevieb92]

So, since I (and all US taxpayers) own a portion of this jet, when can I get a ride on it?

http://www.foxnews.com/story/0,2933,483007,00.html

Beleaguered Citigroup is upgrading its mile-high club with a brand-new $50 million corporate jet -- only this time, it's the taxpayers who are getting screwed.

Even though the bank's stock is as cheap as a gallon of gas and it's burning through a $45 billion taxpayer-funded rescue, the Citigroup's execs pushed through the purchase of a new Dassault Falcon 7X, according to a source familiar with the deal.

The French-made luxury jet seats up to 12 in a plush interior with leather seats, sofas and a customizable entertainment center, according to Dassault's sales literature. It can cruise 5,950 miles before refueling and has a top speed of 559 mph.

There are just nine of these top-of-the-line models in the United States, with Dassault's European factory churning out three to four 7Xs a month.

Citigroup decided to get its new wings two years ago, when the financial-services giant was flush with cash, but it still intends to take possession of the jet this year despite its current woes, the source said.

[DeepbluePA]

Don't worry its ok. They are not using bailout money to by the jet.

this is such BS

[dc dalton]

While this story (like all this corporate BS) pisses me off I do have to wonder if they were already on the hook for it. They did order it two years ago and I'm pretty sure they don't build these without some serious deposits.

I think a few more facts need to come out before I can dismiss this or get pissed off (again)

[fingers80002]

While this story (like all this corporate BS) pisses me off I do have to wonder if they were already on the hook for it. They did order it two years ago and I'm pretty sure they don't build these without some serious deposits.

I think a few more facts need to come out before I can dismiss this or get pissed off (again)

You, of all people know there is an out in the contract.......

[dc dalton]

You, of all people know there is an out in the contract.......

Yes but at what cost ... sure you can break any contract but that doesn't mean they are going to give you your money back ... again more facts needed.

[Ramtuff]

Even if they don't get the deposit back, and have to pay a penalty fee of some sort, it's still cheaper than plunking down the rest of the cash for this bird. Like I've said before, people need to start going to jail over this shit...CEO's and politicians alike.

[H.E. Pennypacker]

Let's not forget about their little contract with the NY Mets for naming rights for their new stadium.

http://www.reuters.com/article/ameri...4AK74C20081122

The New York Mets and Citigroup Inc said on Friday the naming rights deal the struggling banking giant has for the baseball team's new ballpark remains in place.

The 20-year deal, announced two years ago, was reported to be a record $400 millionand entailed naming the new stadium Citi Field after it opened in 2009 in the New York borough of Queens, adjacent to the team's old home, Shea Stadium.


"There is no change in regard to Citi's commitment to the new ballpark," Mets spokesman Jay Horowitz said in an email.

Nowadays, if the number isn't followed by the word "billion," it really doesn't mean anything.

[dc dalton]

Even if they don't get the deposit back, and have to pay a penalty fee of some sort, it's still cheaper than plunking down the rest of the cash for this bird. Like I've said before, people need to start going to jail over this shit...CEO's and politicians alike.

While I agree I also have to look at this from a business owners perspective. I have put down (let's say) $30 million for a new jet. My options are say 'no thanks' AND LOSE THE $30 million or pay the extra $20 million and get a jet I MAY be able to sell for $40 million ... net loss $10 million.

I have also read stories today that are saying this jet was to replace 2 others they have..... now if that IS the case AND they were 'stuck' for the deposit then I MAY agree with the decision ..... but then again you all know I am the FIRST one to scream foul, so we shall see

[Ramtuff]

I doubt that they put anything over 10-15% as a deposit. That's less than $10M. And they won't be able to sell it for $40M, especially in this economy. They'd be lucky to get somewhere between a 1/4-1/2 of original purchase price. Then there all all of the associated costs that comes with aircraft ownership...fuel, maintenance, general upkeep, 100 hour and annual inspections, hanger fees, flight crew salaries, etc., etc.

The auto manufacturer CEO's got raked over the coals for flying to DC on jets the company already owned, but we write a blank check to these fucking banks and they piss money away on airplanes, parties, office remodeling, buying competitors, etc. It's bullshit. This was the biggest heist in history, and I want to see people go to jail over it.

[DeepbluePA]

lets look a little further back.
If they didnt decid to by the most expensive jet they could find to send people around in 2 at a time for $20k a pop. remember the Detroit Boys coming to DC in the private jets to pleade poverty instead of flying comercial.
If they did not decide to wastefully purchase a jet that would be $50 mil less they would have had to be bailed out.

again
where is the accountability