Because Citi DID want the money and asked for it and because Citi was all for a bank bailout plan. And don't mistake my displeasure with Citi as a lack thereof for Paulson. Don't even get me started on government.
The issue here is not what these executives do! The question should be what the US taxpayer going to do about it? NOTHING..........
Citigroup cancels plans to buy $50 million executive jet A http://news.yahoo.com/s/ap/20090127/ap_on_bi_ge/citigroup_jet
From the article above: "Agnew said buyers typically pay a few percentage points of the purchase price when placing the order, then a series of payments as production begins and other milestones are reached. They might pay about 35 percent of the cost before taking delivery, then pay the balance when taking the plane, he said. At that rate, Citi could have already spent $17.5 million on a plane it will no longer receive." Just what I thought. At this point the best thing would have been to get it and resell it right away.
bfft no one cares. futures surging Dow 8,167.00 74.00 0.91 S&P 500 848.60 9.40 1.12 NASDAQ 100 1,197.25 11.50 0.97
Daal, you have some kind of wierd logic. The question IS NOT if THEY NEED A PLANE? The question is CAN THEY AFFORD A PLANE? If you're getting BILLIONS in help from the tax payers then you CLEARLY CAN'T AFFORD a private plane. Think about it. It's that simple.
It's astounding that it takes newspaper articles and public uproar for them to cancel such a dumbass plan. Their arrogance is unbelievable. Those execs should all be fired. I can't believe that government is paying these incompetents billions of dollars. I say it's money wasted because this company will go down anyway unless the whole leadership is replaced.
Replaced by whom? The incompetents at Treasury and the Fed? Nature has a way of dealing with incompetence - failure. The most competent and correct action that government can take is to get out of the way and to not suck wealth creators dry to keep a steady flow of funds streaming into the black holes that are these wealth destroyers. The fact that nobody in government is competent enough to understand that means that they all should also be fired - without pensions.
I agree with you, Angrycat. Government should only provide guarantees and supervise an orderly bankruptcy and closure of shops like City. No money should be given to them to try to revive them. It's money wasted and their new corporate jet plan clearly shows that even in crises of this proportion they have learned nothing.