Citigroup Caves To Obama And Grounds Plans For $50M Jet »
Posted By TimALoftis 9 months, 2 weeks ago in Business & Finance
The high-flying execs at Citigroup caved under pressure from President Obama and decided today to abandon plans for a luxurious new $50 million corporate jet from France.
Read Full Story at abcnews.go.com »
521 Views Share Story 62 Comments Report
Submitted By:
TimALoftis
A Proud And Dedicated Member Of The Propeller Community. If You Like Social News, Join Us For A Mature And Intelligent Discussion On The Latest ...
Who Also Submitted:
RSS Join the Discussion
+ Add CommentComments So Far: 62 (view all)
-
89%
flyonthewallzz9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
http://www.motherjones.com/news/feature/2009/01/fi...
Reply
"Since 1985, executives have been able to take nearly free personal trips on company jets; all they pay is income tax on the value of the travel. Under federal rules, this travel is valued so low that flying a Boeing 737 equipped with a shower and master bedroom from New York to Paris costs an exec less than $500 as long as the company claims it is unsafe for him to fly commercial. (Try getting a middle seat in coach for that.) On top of that, companies get to deduct the full cost from their taxes. So if that Paris flight costs $100,000, government loses out on about $35,000 in taxes, and shareholders shoulder the remaining $65,000 in the form of reduced profits." -
capecoralMComment removed: Retracted by user11 Replies
-
71%
crespi9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
This IS what we have been wanting President Obama to do.
Reply
Corporate greed and arrogance GOT US INTO THIS MESS and MUST stop if we are to get out.
Glad I voted for the man. Now he should start throwing CEOs in jail when they pull crap like that. Make some strict rules for bailout recipients and IMPRISON them whent they violate those rules. -
-
86%
flyonthewallzz9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
http://www.slate.com/id/2205995/
Reply
By Eliot SpitzerPosted Wednesday, Dec. 3, 2008, at 5:59 PM ET
"Last month, as the financial crisis and the government rescue plan dominated headlines, almost everyone overlooked a news item that could have enormous long-term impact: GE Capital announced the acquisition of five mid-size airplanes—with an option to buy 20 more—produced by CACC, a new, Chinese-government-sponsored airline manufacturer. " -
89%
nostalgia9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
A little history that is VERY interesting
Reply
Robert Rubin
26 years at Goldman Sachs before his govt service
From January 20, 1993, to January 10, 1995, Robert Rubin served in the White House as Assistant to the President for Economic Policy. In that capacity, he directed the National Economic Council, which Bill Clinton created after winning the presidency
January 1995 Rubin became Sec of Treasury
One of the most significant economic things that occurred in late 1990s, was the repeal of the Glass-Steagall Act, which had happened during the transition from Rubin to Summers. The Glass-Steagall Act had been introduced in 1933 to keep the commercial banks out of Wall street
In 1997, together with Alan Greenspan, Rubin strongly opposed the regulation of derivatives, when such regulation was proposed by then-head of the Commodity Futures Trading Commission (CFTC), Brooksley Born. Overexposure to credit derivatives of mortgage-backed securities was a key reason for the failure of US financial institutions Bear Stearns, Lehman Brothers, Merrill Lynch, American International Group, and Washington Mutual in 2008.
His most prominent post-government role was as Director and Senior Counselor of Citigroup, where he performed ongoing advisory and representational roles for the firm. From November to December 2007, he served temporarily as Chairman of Citigroup.
He received more than $126 million in cash and stock during his eight years at Citigroup
In January 2009, Rubin was named by Marketwatch as one of the "10 most unethical people in business"
Then Geitner:
Geithner worked at Treasury at the end of the Reagan Administration, and eventually served right under Robert Rubin and Larry Summers
When it came to supervising Citigroup in recent years, the record shows that as head of the New York Fed, Geitner eased the reins as the company blew billions on subprime mortgages and other risky deals that ultimately forced the biggest bank rescue in U.S. history.
Geithner was a key player in the failed attempt to save Lehman Brothers, the government's takeover of giant insurer AIG and the historic market bailout plan
Paulson held a meeting at the NY Fed with Geitner and executives from Goldman Sachs to plan the bailout
Notice how the same names crop up over and over
Wonder who is really controlling govt spending?? Looks like Wall St still has far too much influence-
0%
flyonthewallzz9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
Hmm... Nostalgia
Reply
I should stop trying to figure out how you think.
I would have thought you would be a person that would have supported the Gramm-Leach-Bliley Financial Services Modernization Act.
I am not trying to stick you in a pigeon hole, it is just that you are smart and articulate enough to present a model to compare my own thoughts against.
I am easily confused. -
50%
pc259 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
http://www.propeller.com/story/2009/01/22/a-thumbs...
Reply
-
-
-
-
-
25%
jimdoze9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
I know it doesn't "look good" for the likes of Citi to be buying a plane. But, it would probably have been one of the better assets that the taxpayers will be getting for their money. The other side of this coin will be small jet and plane manufacturers going out of business because no corporation will be able to politically justify the purchase of transportation equipment.
Reply
On the other hand, perhaps once again Warren Buffett will prove to be in the right place at the right time with his purchase of NetJets. I wonder how Warren would take to the government overseeing his profit margin on this business due to the fact that it will be used by a lot of government funded/supported entities?
Point is: Beware of unintended consequences. -
-
-
50%
Endoscopy9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
Foolish man. 30% of the value of ALL mortgaged land in the country went out the window. The papers held by banks are based on the sell price of the property. 2006 to now those papers lost over 30% of their value. That killed the financial institutions that held a lot of that paper. Why do you think that Fannie and Freddy went belly up and the government took them over?
Reply
-
-
50%
injest9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
“Citigroup grounded its plans to buy the jet on the day that Obama is heading to Capitol Hill hoping to win Republican support for his economic stimulus plan”.
Reply
“ABC News has learned that on Monday officials of the Obama administration called Citigroup about the company's new $50 million corporate jet and told execs to "fix it."
“It doesn't help to win votes when corporations appear to use taxpayer cash on luxury perks and outsize bonuses for Wall Street titans.”
So, Obama told Citigroup to can the new jet in order to get Republican votes in Congress?
Begs the question, if Obama and the Democrats had “absolute” control over Congress would this jet deal gone through?
Seems to be, yes, it would have. No doubt about it.
This is why some gridlock is good. -
-
67%
Justice4All9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
This is just the tip of the iceberg really. These corporate exec's have percs that we never thought of. They hang out at the same country clubs and serve on each others board of directors.
Reply
If a CEO travels with several people on a regular basis then maybe a corporate jet is justified. But never for an individual. We use them in remote areas like parts of Africa where there are no alternatives, and yes they are very nice, but for those routine Paris to New York trips we don't always want to travel together. And 8 business class tickets fro, NewYork to Paris is still less than a quarter of the price of a corporate private flight. -
33%
Engnr9 months, 2 weeks ago
-
100%
antibrainwasher9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
What a right wing tool, fixated on the presidents 747s. When your master the villiage idiot in chief was flying around in one, you were waving your chinese made 'merican flag you bought at walmart, sticking your nose as far up the rectum of which ever rich industrialist republitool was nearest. Now that the people who are capable of thinking for themselves have in a landslide elected a president who is not a right wing idealogue, you are whining like the hypocritical beautch you are. Freaking coward.
Reply
-
-
-
100%
Poulenc9 months, 2 weeks ago
This comment is below the standard viewing threshold View It »
Insane! What if real, everyday life worked the way these upper-echelon corporate jerks arrange their perk-filled lives?
Reply
(If only...except....)
Take the money and run...to the nearest jet store. It's just this sort of me-first, narcissistic, selfish, greedy, bleep-everyone-else mentality that got us into the present financial mess. -
100%
Will13139 months, 1 week ago
This comment is below the standard viewing threshold View It »
We’ve created 5.3 million new jobs; we’ve got the growth rate that is the highest of any major industrialized country in the world; we’ve got productivity at near record heights; home ownership at record heights; home sales set new records last year; there are more people owning homes – particularly in the Hispanic and African-American communities – than ever before.
Reply
This is a result of wise policies instituted at just the right time.
------------
Karl Rove... Bragging about the administration WISE POLICIES 2004
http://www.victorynh.com/rove-interview.htm -
100%
Will13139 months, 1 week ago
This comment is below the standard viewing threshold View It »
What was truly significant about Bush's 2002 speeches (including the doozy he delivered on October 15, 2002 at his White House conference, which you should read for the schadenfreude alone) was not the legislation he endorsed—but the unsubtle message he was sending to lenders and, most importantly, to his own employees, the federal regulators.
Reply
Bush made clear at his October 15, 2002 conference that he opposed not merely discriminating against borrowers who might turn out to be bad credit risks—he wanted more money to go to documented bad credit risks. He brayed:
"Freddie Mac recently began 25 initiatives around the country to dismantle barriers and create greater opportunities for homeownership. One of the programs is designed to help deserving families who have bad credit histories to qualify for homeownership loans."
Let's put Bush's influence in perspective. I'm not saying that financial institutions would intentionally make hundreds of billions of dollars worth of bad loans just on the President's say-so. But what I am saying is that federal employees, such as financial regulators, do listen closely to what the Chief Executive says about what he wants done regarding those iffy loans.
---
http://www.vdare.com/sailer/080928_rove.htm
CRA indeed..
More News
Daily Finance
The Crash of 2008: It's the Panic of 1825 all over again (also 1837, 1847, 1866 ... )
Franklin fund bought into Cadbury hoping for buyout deal
Cruise wars: To lure tourists back, companies vie to launch biggest ship
Broader unemployment rate hits 17.5% as companies get smarter about staff
Hurricane Ida's trip through Gulf of Mexico could push oil prices higher
Add a Comment
Sign In With Your Propeller Account
Please keep your comments relevant to this story.
To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.