CitiGroup’s (mis)Use of Our Bailout Money

Remember back in late November all the money that our government gleefully handed over to the banks after their huge, very public “boo-hoo we’re going to go under if you don’t give us millions/billions of dollars”?

Remember the fiasco after AIG was bailed out? Two weeks AFTER receiving $85 BILLION they threw a $440,000 bash! Remember how they then came back asking for ANOTHER $40 BILLION and then AGAIN had another bash, this one a little less expensive but a bash just the same?

Now, you’d think the banks would have learned given all the bad publicity AIG’s greed and stupidity brought them. But NOOOOOOOOOO, I guess CitiGroup got the idea that they were somehow above the rules and regulations here.

You’d think that after the CEO’s of the Auto Industry were publically chastised for FLYING CORPORATE JETS to Washington to beg for a handout (and GM is looking for more now), that they would have thought twice about spending U.S. tax dollars, especially by buying FOREIGN goods. But oh no, these people are so out of touch with reality it’s not even funny.

I saw this reported on CNN this afternoon and almost choked on my lunch. I couldn’t find it on their website, but did find it in the NY Post:

JUST PLANE DESPICABLE

‘RESCUED’ CITI BUYING $50M JET

By JENNIFER GOULD KEIL and CHUCK BENNETT

Last updated: 10:06 am
January 26, 2009
Posted: 1:02 am
January 26, 2009

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.

Read the FULL STORY here.

This just adds insult to injury (on top of the fact that it is US tax dollars benefitting another country when our own economy is in the toilet). Back in November it was reported that CitiGroup was going to cut 50,000 jobs, and this apparently was AFTER receiving $25 BILLION of OUR money.

So hearing about this $50 Million corporate jet just really makes my blood boil. I’m so glad I don’t bank with them.

This does show, however, the extreme need for total transparency. It is imperative that we demand to know exactly what these monies will be used for.

We need to demand of our representatives that IF they choose to give the new President the additional funds that WE THE PEOPLE have some heavy duty strings attached to it AND demand full accountability!!!!

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~ by swfreedomlover on January 26, 2009.

2 Responses to “CitiGroup’s (mis)Use of Our Bailout Money”

  1. An interesting thought from the business analysis side of the fence : http://us1.institutionalriskanalytics.com/pub/IRAMain.asp : They give a pretty solid argument for why the big four and the two non-banks propping them up ought to be allowed to fail and be scavenged by smaller banks.

  2. This totally pissed me off. Of course, the two other students I could get along with in my interior decorating classes also bantered back and forth with me about how we would “only” have taken a quarter or half-million dollars to refurbish Thain’s office. The greed sickens me. The rest of us are tightening our belts, why not them?

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