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XMFSinchiruna (26.57)

How do you like your bailout now?



January 26, 2009 – Comments (4)

This is why you never let your criminal Congressmen dole out your dollars to criminal bankers. On the eve of the TARP vote, I was on the lawn of the capitol in Washington DC protesting the move on the basis that placing our money in the hands of those who have already exhibited a willful propensity to waste and misappropriate money is a collosal mistake.

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 airhead 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.

"Why should I help you when what you write will be used to the detriment of our company?" replied Bill McNamee, head of CitiFlight Inc., the subsidiary that manages Citigroup's corporate fleet, when asked to comment about the new 7X.

"What relevance does it have but to hurt my company?"

It's not uncommon for large companies to pay a deposit on a new plane then cancel the order before delivery, according to a source in the corporate aviation business.

Citigroup execs are also quietly trying to unload two of their older Dassault 900EXs.

Those jets, nearly 10 years old, are worth an estimated $27 million each. They were still listed for sale yesterday on the Web site of Citigroup's aviation broker, Aviation Professionals.

A company representative said she would not comment on "brokering both sides of the deal" when asked about the incoming Falcon 7X.

The Dassaults are part of CitiFlight's Gulf Sierra fleet, which includes the two Falcon 900EXs, tail numbers N399GS and N588GS, currently for sale. FAA records show Citigroup reserved a new tail number, N488GS, possibly for the incoming 7X on Nov. 10 last year.

A woman answering the phone at CitiFlight's private hangar in White Plains said she was "not authorized to release information" about the new jet.

Dassault's US sales office declined to comment.

Citigroup spokesman Stephen Cohen declined to comment.


4 Comments – Post Your Own

#1) On January 26, 2009 at 1:09 PM, DaretothREdux (48.31) wrote:

I'll comment: That's bullshite.

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#2) On January 26, 2009 at 5:01 PM, DemonDoug (30.72) wrote:

I like my bailout now as much as I did back then.  I hate every second of it, and if I had my way, guys like Chuck Prince would be getting the death penalty.  Not figuratively, but literally, like what they do in China to people who are involved in large-scale fraud.

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#3) On January 26, 2009 at 6:22 PM, belfairinvestor (28.84) wrote:

Where are the public displays of outrage for this sort of theft? Everybody screams for "justice" if a burglar enters your home and steals your possesions. How is TARP any different?

What aspiring journalist will make a name for themselves by crusading against these villans? A wannabe John Stossel? Dateline? Is the mainstream media in bed with the Gov and Wall Street? I suspect a large percentage of the population is ignorant to the facts.

Propoganda rules the day. Its all for the "greater good". Your everyman, celebrity, President of Change and Friends will help you.

Wake up!



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#4) On January 26, 2009 at 6:55 PM, foolishlew (< 20) wrote:

I have 3 Citygroup credit card accounts and use all 3 but never pay interest as I pay off every month. Over the last 2 weeks, I have gotten notices for all 3 accounts that they are raising their interest rates to as high as prime plus 16%. ( and thats for accounts in good standing)(accounts in default or late can go as high as nearly 30%) They claim they are doing this to maintain 'profitability' on the accounts.  I do intend to decline  to accept their new terms on 2 if not all 3 of the accounts based on their lavish expenditures on executive percs.  I know that will automatically cancel the account on the expiration date or sooner of each card, but I have other cards begging for my businesss every week. If they cannot make it on the 3-4% they charge merchants for my purchases, they aren't very good at running a business.  Oh wait, I think they have proven that already.  It's a shame our government lets them get away with it  - even rewards them for their failures. 

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