Senator Wants Government Action on Citigroup Jet
EmailABC News’ Z. Byron Wolf Reports: If Timothy Geithner can get the Senate to confirm him despite the moral oddity of having a Treasury Secretary who didn’t pay all his taxes, he’ll take charge to cries from lawmakers that he address the hypocrisy of a bank being kept afloat with $45 billion in taxpayer money buying a new corporate jet.
Sen. Carl Levin, D-Mich., a chief backer of the U.S. auto industry in Congress, has seen the NY Post report that executives from Citigroup, the beleaguered bank that took $45 billion in taxpayer TARP money, have ok’ed the purchase of a new $50 million corporate jet, and he’s fumed.
Detroit automakers CEOs were lambasted for their use of corporate jets even before Congress rejected giving the auto makers a bailout – the Bush administration provided loans from TARP funds to keep Chrysler and GM afloat.
“The notion of Citigroup spending $50 million on a new corporate jet, even as it is depending on billions of taxpayer dollars to survive, does not fly," said Levin in a paper statement.
“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," said Levin, who has contacted Geithner to do something about the Citigroup jet. Presumably, since Geithner is in charge of administering TARP funds, he would hold some leverage over Citigroup.
“I have urged Tim Geithner, who will presumably be Treasury Secretary by the end of the day, to do what he can to stop this absurdity from occurring, and I am assured he will look into the matter promptly ," Levin said.
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Why aren’t all lawmakers incensed?! Time for that old blue collar v. white collar double standard to end NOW.
Posted by: hang | January 26, 2009, 5:33 pm 5:33 pm
Thought the jet was bought and paid for a couple of years ago. I guess many people want to put the private jet manufacturing business out of business. Yes, this one was built in France but many people work in and around this industry in our country.
Posted by: William | January 26, 2009, 5:36 pm 5:36 pm
the new attorney general is simply proof that the govt, bush’s or obama’s, is full of criminals.
if you have the contacts, you can steal anything.
shame on obama for not immediately withdrawling Tim from the nomination
Posted by: Tonya S. | January 26, 2009, 5:42 pm 5:42 pm
Tonya – The subject of this particular article is CITICORP’S NEW JET — not the nomination of Tim Geithner. Try and stay up with us.
Posted by: hang | January 26, 2009, 5:56 pm 5:56 pm
This is degregulation and no accountability among the big wigs in corporation land. We need start auditing these up corp administration.
I am a big supporter of Obama but I worry about Tim G. being head of treasury. His record is weak on trust.
I wish Obama would find someone else-course look what happened with the recent treasurer. He didn’t invade taxes and he has us in a big mess too! So I guess who is to say….legal or illegal-it is all a risk!
Posted by: Sophia | January 26, 2009, 6:03 pm 6:03 pm
Hey if Citigroup buys the jet, the taxpayers own it, so we can all sign up for free trips!
Posted by: janklo | January 26, 2009, 6:11 pm 6:11 pm
“shame on obama for not immediately withdrawling Tim from the nomination”
It’s like putting Billy Ayers at the head of Homeland Security.
Posted by: Blurb | January 26, 2009, 6:51 pm 6:51 pm
ROFL! I’m sure that a brief meeting between the ‘can-do’ Geithner and Citibank officials will get things straightened right out.
“A new bank account here, Mr. Treasury Secretary? Why sure, and look, we have a special — just like all the other banks! See, we’ll just add a few zeros after that $5 promotional opening credit for that account. Maybe….six? Oh, no, wait, seven! Jet, what jet?”
Posted by: LaughingCynic | January 26, 2009, 8:41 pm 8:41 pm
Ooops, my error…Citigroup…
Posted by: LaughingCynic | January 26, 2009, 8:42 pm 8:42 pm
Cant you just see it now…..he is miraculously going to become the all-knowing savior of the entire economy!
Oh yeah, this is going to work…..
Posted by: Mike_C | January 27, 2009, 8:15 am 8:15 am
Geithner & Citigroup…..
Lets see…. back in November….
“Geithner played a crucial role in the weekend round-the-clock negotiations to rescue ailing Citigroup, which was deemed too big to fail.”
AND….
“On the Sunday morning talk show circuit, Obama’s incoming senior adviser David Axelrod, said Geithner “is uniquely qualified,” and noted that he is steeped in economic knowledge and crisis manager. But interviewer George Stefanopolis pointed out that Geithner was in the middle of the decision to let Lehman Brothers fail, which critics say has led to financial market instability. Geithner was also involved in hammering out the $700 billion bailout package with the Trouble Assets Relief Program or TARP, whose success is debatable.”
And now we are suppose dto believe that this guy is the BEST/ONLY man who can “fix” the economy.
The same man who blatantly cheated on his taxes, and seemingly loves to just hand out money to these banks with zero accountability.
Now…somehow…he is miracliously
Cant you just see it now…..he is miraculously going to become the all-knowing savior of the entire economy!
Oh yeah, this is going to work…..
Posted by: Mike_C | January 27, 2009, 8:17 am 8:17 am
Will somebody please step forward to remind us of TWO relevant facts:
It may be fiscally irresponsible to NOT take delivery of the aircraft. The jet was ordered a good while ago, and built to order. It’s probably not Citicorp’s first aircraft (althogh it may be their last ;-) and,
However luxurious we citizens may think private aircraft are, the foremost benefit to a business (that can afford one) is managing the risk of moving the company’s executives from one decision-making opportunity to the next as quickly as possible.
Posted by: MIke | January 27, 2009, 12:24 pm 12:24 pm
Corporate jet use seems to be a hot topic in congress these days with Democrats (including the President) lambasting corporate executives over their extravagant travel expenses.
Please consider doing an investigative piece on jet use by current Congressional leaders. I’m sure that America would like to know what government and private jets are being used by Congressmen to fly to and from home. There was a short rukus a while back about Nancy Pelosi using a government 737 to fly to San Francisco on the weekends. Is this still going on? What does it cost? And.. what are the carbon emissions from this activity.
Aren’t government jets just the type of needless expense that politicians should be forfeiting during the economic meltdown?
Posted by: John Christensen | January 27, 2009, 1:59 pm 1:59 pm
This is too much. Every one of those fools should get fired.And let the unemployed take over their positions.
Posted by: Bob | January 27, 2009, 3:00 pm 3:00 pm
This jet is well been paid for, so this is redundant to cancel it, sell it makes more sense, also for the record, the completions center of this jet is located in Little Rock, Arkansas, USA, and employs over 2500 americans, so its not like this is completely a french plane
Posted by: just someone | January 27, 2009, 5:52 pm 5:52 pm
He is the only guy?? Come on there
must be thousands who would qualify
for this position! On top of I’ll bet
that they actually paid their taxes!
Oh, wait – I forgot WE are now
dealing with “THE ONE” and his group
of unrefutable “KNOW IT ALL’S!
Give me a break – these moron’s can’t
find their butts with both hands!
Posted by: Dan Ferguson | January 27, 2009, 6:06 pm 6:06 pm
I don’t care who makes the plane or where its made. The POINT is that CitiGroup needed MY/YOUR tax dollars to bail their butts out. And what do they do? Buy a new jet…that’s smart business sense. I wish for once that someone with just a shred of common sense was in charge of anything these days – including our government.
Posted by: Brandy Reilly | January 28, 2009, 4:52 pm 4:52 pm
Hopefully our new President cuts Citigroup’s tax breaks as well. Take that from a Citi employee who worked for them for 18 1/2 years and right after Citi got their government bail out, they shipped my job to India. My last day was 3 days before Christmas! Not to mention as a taxpayer, I’ll be footing their bill anyway!!!!! I wish nothing but the worst for that bank!
Posted by: Former Citigroup Employee | January 30, 2009, 5:03 pm 5:03 pm