Citigroup going through with $50 million plane order

[gcy]

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

I don't these people are in the reality as we are!!

:disgust:

 

[Genx87]

Really stupid. Where is this democrat oversight everybody raves about?

Edit: Well it was ordered two years ago and probably costs more to not take delivery of it now. But still there is a lot of shit going on with the money we gave these banks.

 

[JS80]

lol what are these people thinking?

 

[Slew Foot]

Originally posted by: JS80
lol what are these people thinking?

Look at your sig

 

[smokeyjoe]

as already mentioned, it was ordered 2 years ago.. also, "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.."

personally, I found the link to the next article about Halliburton to pay $559 million to settle bribery probe more interesting

 

[Fear No Evil]

I don't believe Citi got bailout money for ITSELF as much as to purchase another failing bank didn't it? I don't think thats quite as bad as some of the other companies that were failing themselves and took bailout money.

 

[StageLeft]

Originally posted by: JS80
lol what are these people thinking?

What do you mean? They keep getting money thrown at them, why wouldn't they spend it?

I don't believe Citi got bailout money for ITSELF as much as to purchase another failing bank didn't it? I don't think thats quite as bad as some of the other companies that were failing themselves and took bailout money.

Maybe not, but if you give me $50k and I buy stocks, it's not buying money for me but it's still money I can use to buy something that will help me!

 

[smokeyjoe]

Originally posted by: Fear No Evil
I don't believe Citi got bailout money for ITSELF as much as to purchase another failing bank didn't it? I don't think thats quite as bad as some of the other companies that were failing themselves and took bailout money.

Looks like it was for itself.

 

[Fear No Evil]

Originally posted by: smokeyjoe

Originally posted by: Fear No Evil
I don't believe Citi got bailout money for ITSELF as much as to purchase another failing bank didn't it? I don't think thats quite as bad as some of the other companies that were failing themselves and took bailout money.

Looks like it was for itself.

Then flame away.. But I do agree that if it was 2 years ago its probably too expensive to cancel at this point..

 

[Ozoned]

Originally posted by: gcy
NEW YORK (Reuters) - Citigroup Inc (C.N), which has received $45 billion of capital from the U.S. government, is going through with plans to buy a $50 million corporate jet, a person familiar with the matter said.

I don't these people are in the reality as we are!!

:disgust:

Just think of it as wealth redistribution.

 

[freegeeks]

in their defense, the Falcon 7x is a kick ass business jet.

and it's French, the Republicans must go crazy now

 

[smokeyjoe]

Originally posted by: freegeeks
in their defense, the Falcon 7x is a kick ass business jet.

and it's French, the Republicans must go crazy now

why do Republicans hate the French?

 

[Budmantom]

I'm sure Obama will take care of this.

 

[JS80]

Originally posted by: Slew Foot

Originally posted by: JS80
lol what are these people thinking?

Look at your sig

touche

Originally posted by: Skoorb

Originally posted by: JS80
lol what are these people thinking?

What do you mean? They keep getting money thrown at them, why wouldn't they spend it?

I don't believe Citi got bailout money for ITSELF as much as to purchase another failing bank didn't it? I don't think thats quite as bad as some of the other companies that were failing themselves and took bailout money.

Maybe not, but if you give me $50k and I buy stocks, it's not buying money for me but it's still money I can use to buy something that will help me!

I was asking more on a business/PR level. After all the flack the auto execs got and all the shit AIG execs got, they don't hold off on stuff like this, it just doesn't make business sense. But then again citi execs ran the company into the ground...

 

[Paddington]

This is classic of the "penny wise, pound foolish" attitude that the U.S. gov't is known for.

They spent the entire month of December berating the entire domestic auto industry for $18 in loans. They made a big stink about their use of private jets, even though those same Congressmen have their own private jets paid for by taxpayers.

But where did the bulk of the money go? It didn't go to Detroit (which only got loans, BTW), it went to Wall St. in the form of grants. $700 billion. And for that, there was no debate, and the money was handed out with no strings attached. Just a week or two ago, another $20 billion was doled out to horribly incompetent and corrupt Bank of America quietly without much fanfare and with zero debate. That's one bank getting more money than the entire auto industry.

Also, let me make one thing very clear to you:

IF YOU'RE MIDDLE CLASS YOU WILL NOT LOSE YOUR BANK DEPOSITS.

I don't know if that's how this bogus TARP got railroaded through or what, but it's intent was purely to protect the interests of Wall St. Bank accounts are insured up to $250,000 anyway. The banks raised a big stink that the credit markets would freeze and they needed this money to unfreeze it. Hey guess what, $350 billion later, they're still frozen! Don't you feel like a sucker? These bailout monies have been used for everything but their intended purpose. Most banks are hoarding the money. Others are using it for acquisition. Others are using it for generous end of year bonuses, lavish parties at Arizona resorts, and of course private jets.

 

[JS80]

Originally posted by: Paddington
This is classic of the "penny wise, pound foolish" attitude that the U.S. gov't is known for.

They spent the entire month of December berating the entire domestic auto industry for $18 in loans. They made a big stink about their use of private jets, even though those same Congressmen have their own private jets paid for by taxpayers.

But where did the bulk of the money go? It didn't go to Detroit (which only got loans, BTW), it went to Wall St. in the form of grants. $700 billion. And for that, there was no debate, and the money was handed out with no strings attached. Just a week or two ago, another $20 billion was doled out to horribly incompetent and corrupt Bank of America quietly without much fanfare and with zero debate. That's one bank getting more money than the entire auto industry.

Preferred stock and common stock dilution = "grants"?

 

[Paddington]

Sure the gov't got something in return, but essentially they are like grants once you look at how the payments, interest rates, cash flows, etc. are structured compared to market rates. The banks are making out like bandits here. If all it took was some extra stock offering and some bond sales, they certainly didn't need the taxpayers money for that.

 

[JS80]

Originally posted by: Paddington
Sure the gov't got something in return, but essentially they are like grants once you look at how the payments, interest rates, cash flows, etc. are structured compared to market rates. The banks are making out like bandits here. If all it took was some extra stock offering and some bond sales, they certainly didn't need the taxpayers money for that.

Are you kidding? Do you even know what interest rate the preferreds are at? Some got like 80% common stock dilution. That's hardly a "grant."

 

[jman19]

Wouldn't it be worse to just dump TARP on the fees than to acquire an asset with the money?

 

[Pocatello]

Your tax $$$ at work. Republicans, Democrats, what's the difference?

 

[Starbuck1975]

Citigroup placed the plane order years ago, and to cancel the contract now would cause them to incur millions in penalties...that, and they are selling some of their outdated fleet, and intend to contract out some of their fleet, to pay for the new plane.

From a PR standpoint, the timing is horrible, but a knee jerk reaction at this point for the media talking heads to spin over.

 

[Capt Caveman]

Originally posted by: jman19
Wouldn't it be worse to just dump TARP on the fees than to acquire an asset with the money?

They aren't using TARP money though.

 

[imported_K3N]

1.5 Quadrillion dollars in derivatives cant be bailed out. With this give away they are probably getting the most of it by buying real hard assets to prepare for the devaluation of the dollar.

 

[BeauJangles]

Originally posted by: Starbuck1975
Citigroup placed the plane order years ago, and to cancel the contract now would cause them to incur millions in penalties...that, and they are selling some of their outdated fleet, and intend to contract out some of their fleet, to pay for the new plane.

From a PR standpoint, the timing is horrible, but a knee jerk reaction at this point for the media talking heads to spin over.

I agree it's a bad PR move, but Citi is selling two planes for $45 million and buying a $50 million dollar new plane. They aren't using TARP funding. I guess I don't really see how this is a big deal.

 

[EXman]

Originally posted by: smokeyjoe

Originally posted by: freegeeks
in their defense, the Falcon 7x is a kick ass business jet.

and it's French, the Republicans must go crazy now

why do Republicans hate the French?

Well I'm not really a republican but as a Conservative I'd have to say France sux. But I bought a french gun once it was never fired and only dropped once! j/k