Citigroup will not take possession of new aircraft
By STEPHEN BERNARD – 1 day ago
NEW YORK (AP) — Pressured by the Obama administration, Citigroup Inc. reversed course and said it will not take delivery of a corporate jet it previously planned to purchase.
The canceled deal comes amid a chorus of concerns from politicians who are worried about how banks that have received federal funds are spending the money. Citigroup has received $45 billion in capital from the government in recent months amid the ongoing credit crisis.
"Citi has no intent to take delivery of any new aircraft," the New York-based bank said in a statement Tuesday.
An official in President Barack Obama's administration reached out to Citigroup on Monday to reiterate Obama's position that such jets aren't "the best use of money at this point," and are "an outrageous use of funds" for a company getting taxpayer dollars, said a White House official who spoke on condition of anonymity to more freely describe private conversations.
In a statement late Monday, Citi said it had placed a deposit in 2005 to acquire a new corporate jet, and said it didn't plan to use government funds for the purchase. The New York-based bank noted that any cancellation of the deal would likely lead to millions of dollars in penalties.
By STEPHEN BERNARD – 1 day ago
NEW YORK (AP) — Pressured by the Obama administration, Citigroup Inc. reversed course and said it will not take delivery of a corporate jet it previously planned to purchase.
The canceled deal comes amid a chorus of concerns from politicians who are worried about how banks that have received federal funds are spending the money. Citigroup has received $45 billion in capital from the government in recent months amid the ongoing credit crisis.
"Citi has no intent to take delivery of any new aircraft," the New York-based bank said in a statement Tuesday.
An official in President Barack Obama's administration reached out to Citigroup on Monday to reiterate Obama's position that such jets aren't "the best use of money at this point," and are "an outrageous use of funds" for a company getting taxpayer dollars, said a White House official who spoke on condition of anonymity to more freely describe private conversations.
In a statement late Monday, Citi said it had placed a deposit in 2005 to acquire a new corporate jet, and said it didn't plan to use government funds for the purchase. The New York-based bank noted that any cancellation of the deal would likely lead to millions of dollars in penalties.
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