Obama Team pressures bailed-out Citigroup to nix private jet purchase
The President of the United States actively demanding that corporate fat cats quit abusing taxpayer money? That's certainly Change I can believe in.
ABC:
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.
The bank used TARP funds to purchase a new corporate jet for executives.
The decision came 24 hours after the banking giant, which was rescued by a $45 billion taxpayer lifeline, defended buying the state-of-the-art Dassault Falcon 7X -- one of nine to be flying in U.S. skies -- as a smart business deal.
The jet, the epitome of corporate prestige and privilege, can carry 12 passengers in elegant comfort.
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."
Wow!
Obama is just kicking goals right now!
Closing guantanamo bay
Withdrawing troops from Iraq
Providing funding for stell cell research
Overturning Bush's strict regulations over abortion
and now - telling the greedy fat cat Citigroup execs to "fix it" ie. not use TARP funding for luxury items!
Boy - you just know the Republican conservatives are already plotting impeachment to get rid of Obama!
they had plans to impeach him on Nov. 4th. So far Obama has done more in his short presidency than Bush has done probably in 3 years. Of course 3 years of the Bush presidency is about the amount of time he spent on vacation.
Hundred MINUTES!!!:
http://www.swamppolitics.com/news/politics/bl...
"The US has an army of 90,000 soldiers in Afghanistan and is spending $100bn a year, but has still been unable to defeat 20,000-25,000 Taliban who receive no pay at all." - Patrick Cockburn
WHOA! The troops in Iraq came home! Now I'm impressed!
BUT, the jet was ordered in 2005 (from what I read elsewhere), and it will cost millions in penalties, per the contract, to cancel it now.
Whatever, let's not let facts get in the way of smearing bankers (/mild sarcasm).
But if you think about it, the order would have been canceled anyway if not for the government's help because citibank would have gone bankrupt.
Oh yea that's right they're not insolvent. We're just giving them money.
/sarcasm
but I do love true facts.
This morning I read that:
1. The plane was ordered in 2005.
2. No TARP funds were to be used to pay off the contract.
3. Senator Levin is the underling who's trying to nix the deal.
Link: http://www.swamppolitics.com/news/politics/bl...
On this C&L article, however, I learn that:
1. The plane must be an impulse buy, 'cause hey, got bucks now.
2. TARP funds would've paid for it.
3. It was Obama, rather than Levin, who nixed the deal.
So forgive my confusion. Damn internet -- never know WHAT to believe (that noise you hear is poor old Kilgore, banging head on desk).
Good call, bro.
I like Obama. I think he's doing a fantastic job.
But I'm already getting tired of these stories that are clearly misrepresenting the facts.
who cares when it was ordered or what funds were being used to purchase it
they need to do belt tightening
they have no problem laying off workers
let the fuckers walk
oh, i have a better idea
this is the age of the internets, where one can run his entire biz from his fucking gold lined toilet
If the facts are being fudged in order to generate false outrage. I want to know.
It matters when it was ordered because Citi didn't need to "do belt tightening" in 2005. They didn't have taxpayer money at that point, and their stock was fine. And let's not forget that Citi executives did decline their retention bonuses this past year.
he's letting the "too big to fail" guys know he's watching. Merrill lynch just paid "bonuses" to those big geniuses that ran the company into the ground while making big commissions on "sophisticated" financial instruments. I say the banks deserve what ever crap is flying their way.
this "it costs money to cancel" crap is the same excuse someone offered when the banks went on their boondoggles aka conferences. Yeah, it costs something to cancel, but it's a spit in the bucket compared to going forward with these superduper plans to spend lots more money. And these people are bankers???? They are supposed to hang on to money, not spend it.
hey this jet is super nice. why high end during these times. regardless, they can wait like the rest of us.
Why does Obama need to be distracted by this blatant bull shit?
your correct he shouldn't have to deal with this but he's taking the reigns. these people (c) don't care. if obama speaks/mentions this it will get plenty of media time. not good for the financial institutions that deliberately fed subprime loans to people that had NO chance in hell paying. then they overleveraged themselves to be in the derivative market(s). not they're at the tax payers mercy kind of.
Thain & Citi have spent many 10s or 100s thousands refurbishing exec offices with luxury artworks and furniture. All on the taxpayer's dime.
They even purchase the jet with our ""Worker's"" tax money ,, from France leaving our workers in the cold again with no jobs...
Remember McCain stopping the military war contract for American corporation and shipped it overseas for foreign workers..
Then While McCain was on the campaign trail he told workers they would never get those jobs back, But he would create new ones. (SURE new jobs were)
Now he doesn't like the stimulus package but like all the republicans ,,, wants to insert tax cuts "again" for the wealthy and corporations...
Obama looks as if he has been eating at the table with Pelosi , Reid and the Blue Dogs to many times..
Corporations are completely screwing American workers and until Obama and this administration figures out that Americans manufacturing and Jobs are problem with the housing destruction and no able to buy Corporations have no problem except that Americans have no more money..
None
While I support all these execs being sent to prison for malfeasance in general, in this case the full story also mentions that Citi was selling 2 older jets for 27 mil each.
Talk about arrogance. I hope every customer at ShittyGroup closes their accounts and takes their money elsewhere. The purchase of that jet, that holds TWELVE passengers (WOW) would have been a slap in the face to everyone that is struggling. So Obama and his team slapped them back.
Just for that, ShittyGroup should have to give all the bailout money they received back to the government or they should give it to the people who really deserve it: US.
NOBODY 2012
…be a shame if someone were to…audit…it.
Obama would exclude them from any further input or output. They should be jailed because they are stealing from, we, the people. Don't know how anyone could put it any plainer, or explain it away.
The looting of our treasury will go on it appears.
Merrill Lynch, should be Treasury Secretary instead of that Bush stooge. Yet, I say Thain should be in prison.
Like enacting real change, which means really reducing the power of corporations in American. For instance, not allowing a corporation to lobby, or to make political contributions. I know that some claim the Rehnquist Court said that corporations have a 1st Amendment right, but you know what, who cares what Rehnquist, that criminal, said. I say let's get real change, and, oh yeah, instead of Obama allegedly borrowing the 800 billion for this stimulus from China, how about asking the rich in America to make a donation. How about a 100% estate tax? But, I will be mocked and ridiculed that Obama never ran on this, yet, Obama also didn't run on caving to Rethugs, and he's done a lot of that lately.
i am totally diggin' o's two word reactions:
I won.
Fix it.
:-D
When's Mr. Change going to demand Israel stop abusing US taxpayer money?
93 year old freezes to death in own home due to unpaid power bills
So Wall Street gets help to continue living their posh lifestyle with handouts but a single old man is left to die? The city office that shut down his electricity then has the nerve to push this out to the neighbors, that they should have been watching over him. This is sickening.
A 93-year-old man froze to death inside his home just days after the municipal power company restricted his use of electricity because of unpaid bills, officials said.
Marvin E. Schur died "a slow, painful death," said Kanu Virani, Oakland County's deputy chief medical examiner, who performed the autopsy.
Neighbors discovered Schur's body on Jan. 17. They said the indoor temperature was below 32 degrees at the time, The Bay City Times reported Monday.
"Hypothermia shuts the whole system down, slowly," Virani said. "It's not easy to die from hypothermia without first realizing your fingers and toes feel like they're burning."
Schur owed Bay City Electric Light & Power more than $1,000 in unpaid electric bills, Bay City Manager Robert Belleman told The Associated Press on Monday.
A city utility worker had installed a "limiter" device to restrict the use of electricity at Schur's home on Jan. 13, Belleman said. The device limits power reaching a home and blows out like a fuse if consumption rises past a set level. Power is not restored until the device is reset
http://news.yahoo.com/s/ap/20090126/ap_on_re_us/frozen_indoors
was ordered in 2005 and was to replace 2 jets that are not as efficient and those 2 were to be sold. So what did Obama do? Nothing. This partisan crap is getting old as fast as Bushie's partisan crap.
Were you going to buy the 2 other jets? Remember Palin selling the state jet? They may not get the price they are asking. Have you thought of that?
It's making it look like they are lavishing out multimillions wastefully to buy a plane. They aren't. If they were, then the anger is justified. But they are not. It's a non-story. I'm sure taxpayer funded politicians will waste more than 50 million tax dollars on airfare, and there will be no outrage, right?
There is a multitude of corporate crap out there for taxpayer's to get mad about and rightfully. Catchy misleading stories are not right, regardless. It's playing Republican "gotcha" games.
1st they have to have a buyer for the 2 planes they want to sell. 2nd, they have to agree on a price. 3rd, how many other corporations are cutting back on planned purchases because of the economy? Wanting to sell a jet for 27 million doesn't mean you can if you can't find buyers to pay the price. Ask the car dealerships.
But, they did order these years ago. Idiotic? Not really when they were swimming in dough. Bad timing? Absolutely. But to say they are doing this with taxpayer's bailout, which alot of people are saying on the blogs, even though the story doesn't say that, is being dishonest. Like I said, there are enough reasons to jump on these corrupt bastards, but this one? Nope.
YES, for a 12 passenger jet?
Sounds like they were already cutting back.
even if they were penalized half the cost, that still leaves 25 million to be spent on people keeping their jobs... or their homes. 50 million spent on a jet will not yield the same desirable results that 25 million spent on damage control within their operation.
BUT when the jet was ordered, there was no global meltdown.
The illusion of progress.
If I shuffle papers, it looks like I am working.
These guys are/were BANKER'S. They have their thumb on the financial pulse. They couldn't see what was coming and tighten their belts? I don't know, maybe cut back on the fucking jets? We have airlines and shit in this country. I don't think they should get a break EVER with their amazing mismanagement and greed.
Fuck those guys. Maybe they could come over to my house right now and sit in the cold (19 degree weather) while I try to conserve heat so I can pay my bill, unlike that poor guy who died.
The fact that they happen to be bankers doesn't make them psychic. Citi's former CEO Chuck Prince certainly didn't see this coming. His entire strategy for Citi's future was dependent on a good economy. This is one the reasons that Citi is suffering so much right now.
Well, when you rely on appreciation of assets as your principal revenue stream, you may perhaps encounter issues.... oops.... eggs.... one basket?
it's not just the purchase it's the maintenance. there is some labor involved but the vast majority of the cost is routine replacement of parts. if they can't plan well enough to work within commercial airline schedules, they shouldn't be running a bank. the only better response than "fix it" would have been "no jet".
Whether old or new, being bought or being sold, why do they need these jets? They can fly like anyone else.
Which reminds me - since we have this here internets tubes and satellite conferences, why are so many business people jetting around all the time? I sat in on medical satellite teleconferences in the 1990s. Surprise, surprise, hospitals wouldn't buy us private jets so we could whisk ourselves off to the conference site. I watch tv programs where people are interviewed by remote all the time. Five people, sometimes, all in different parts of the country, sometimes in different parts of the world. The cable networks ain't paying to fly their guests of the moment to come on down to the studio.
I think a lot of work involving travel is bullshit and could be handled on the phone or via webcam. It would sure cut down on jet fuel pollution.
Those overpaid yokels have state-of-the-art telecommunications equipment yet they just have to jet to business meetings to finish a deal---and probably get'em some tail.
Yeah their executives should sit next to a screaming baby, a hyperactive six year old, and mouth breather, and someone trying to ignite their shoes too.
Diabolus est Deus Inversus
In light of current loses, Nomura Holdings (a major financial institution) revealed the following:
"Nomura will eliminate annual bonuses for 20 executives, including Watanabe (CEO), and slash their monthly pay as much as 30 percent as the firm aims to cut costs 10 percent in the year starting April 1, Nakada said at a press briefing in Tokyo today."
As well;
"France’s three biggest banks have all scrapped bonuses for their chief executives amid a rout that’s forced President Nicolas Sarkozy to offer lenders a 10.5 billion euro ($13.9 billion) lifeline. Former Merrill Lynch & Co. Chief Executive Officer John Thain has been criticized for paying year-end bonuses and agreed this week to repay $1.2 million used to renovate his office."
So, I pose a question. What makes the US so different that its leaders (business and political) cannot make sacrifices?
Excerpts from Bloomberg article.
that would be a good start
Glad to see some action!
You guys need to check out www.whatuppres.com we are an un-biased website that monitors the actions of the President everyday. We provide the sources and let the American people formulate their own opinions. Check it out!
www.whatuppres.com
http://www.msnbc.msn.com/id/28869701/
How do I know? It was going to be Richard Parsons’ plane. Who is he? Richard Parsons is currently a member of Obama’s economic advisory team and has been announced to become Chairman of CitiGroup in about a week or so.
Parsons is big with the Rockefeller family and even owns a home on the famous Rockefeller estate. And that would have been his plane.
http://willyloman.wordpress.com/2009/01/27/ob...
... is to disallow their most recent rate hike on credit cards from 13 to 20 percent - that's going to crush a few families rather quick like!
Why would it take the President of the United States to tell these bastards, they were wrong?
Please see Concerned Canuck and My comments below.
Understand the outrage, but not a question of legality. More a question of morals and culture.
the Obama team been able to get all that damn money back......
from all these banks that are using the 'bail-out' for what they want and not for (I just love it)..'creating jobs'.
I can't even watch tv at this point....seeing as all you see is Cantor/Boehner ranting and spewing their crap....and no mention is made from the "librul" media about obstructionism.
oh right, that's when the Dems "stand-up" (hahahahahahahahahahahahahahaaaaaaaaaaa) to the Repubs.
need to take a break.....am still looking forward to that Vanity Fair issue in Feb...hopefully some of Wilkerson's comments will hit it big...(I know, I know, I keep dreaming...........)
I've noticed some peculiar things about that stock market bust.
Black stockbroker named Wright in Atlanta scammed some big rich including a couple of LA Lakers. He ended up as a jailhouse "suicide" by hanging.
Jewish Madoff is in the can and may serve big time for preying on other Rico Suave types.
White Anglo-Saxon Protestant Wall Streeters screwed working folks and retirees out of their 401K's, IRA's, savings and dividends. Bush and Obama are handing them billions more to play with and playing pocket pool while watching the brokers' conspicuous-consumption orgy.
Change they can deceive in...is this ol' country girl the only one having a problem with this scenario?
We should all be up in Washington making citizens' arrests on Congressmen. Seriously.
WTF are they even doing with taxpayer money?!?!?!
Oh yeah, Mr. Change made sure they got it.
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