Posted tagged ‘Levin’

Citigroup Backs Off Purchase of $50 Million Corporate Jet

January 27, 2009

Citigroup, which received a large taxpayer-funded rescue last year, canceled plans to buy a $50 million executive jet after news of the new plane drew rebukes from politicians.

They also lost $7,300 of my credit card debt which was transferred to another bank. I have not been happy with Citibank in quite some time. They raised my APR from 9.9% to 15.99% for the reason that “they were losing too much money”. I requested numerous times to have my APR lowered but was turned down each time. (Until last week when after I transferred my balance, I had my rate dropped to 12.99%).

Goodbye Citi…you will not be missed by me!


The bank is under heavy pressure from regulators and elected officials after receiving $45 billion of capital from the U.S. government last year, including a $20 billion emergency infusion in November.

On Monday, Citigroup said it was going through with plans to buy a $50 million jet, which a person familiar with the matter said was a Dassault Falcon 7X. The bank said the new plane would cut its costs and it was financing the purchase by selling older jets.

But on Tuesday, a spokesman said Citigroup has no intention of taking delivery of any new aircraft.

On Tuesday, CNBC said it has learned that the Treasury Department put pressure on Citi not to accept the plane. Citing sources, CNBC said someone in the department called the bank to express “disappointment” in Citi’s original decision to take delivery. The call was said not to be from new Treasury Secretary Tim Geithner.

Citigroup had ordered the executive jet in 2005, and was scheduled to receive it later this year. The bank said on Monday that canceling the deal would force it to pay millions of dollars of penalties.

The jet quickly became a lightning rod of criticism. A White House spokesman said President Barack Obama does not believe “that’s the best use of money” by companies receiving taxpayer assistance.