Citigroup using Federal Rescue Fund to Buy Jetplane
Filed Under (World News) by Webmaster on 27-01-2009
Tagged Under : buy jet, citigroup, rescue fund
Pro Trade Shares found out how on of the troubled banks in US is using their federal rescue fund:
Citigroup Inc, which has received $45 billion of capital from the government, is going through with plans to buy a $50 million corporate jet, a person familiar with the matter said.
The bank put in an order for the Dassault Falcon 7X two years ago and plans to accept delivery on the plane later this year, the source said.
Canceling the deal would have forced the bank to pay a multimillion-dollar fee, the person said.
Citigroup is selling two older Dassault jets, worth an estimated $27 million each, according to the New York Post, which was first to report that the bank was still buying the new plane.
Citigroup declined to comment on whether it was buying a new aircraft, but it said in a statement that it has strict policies regarding use of its aircraft, including encouraging executives to fly commercial whenever possible to reduce expenses. The bank said it has reduced its number of aircraft by two-thirds over the last eight years.
