Under Fire from Obama Administration, Citigroup Drops Plane Plan

By Caitlin Taylor

Jan 27, 2009 8:52am

On Monday an official of the Treasury Department called an official of Citigroup, recipient of $45 billion in TARP funds, and complained about the company’s new $50 million dollar,12-seater corporate jet from a French company.

The official "told them to fix it," a source with knowledge about the call tells ABC News.

Citigroup this morning released the following statement: "We have no intent to take delivery of any new aircraft."

Asked by ABC News about the appropriateness of Citigroup spending $50 million on a new luxury jet for corporate chieftains, White House press secretary Robert Gibbs on Monday said, "the president said this during the transition, as it related to the auto companies using private jets; doesn’t believe that’s the best use of money at this point.  Instead, that money should be used to lend to consumers to get the economy moving again, to free up capital and credit, and help small businesses create jobs."

- jpt

You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus