NEW YORK — Citigroup won’t be getting a new corporate jet after all. Under pressure from President Barack Obama, the bank reversed course, announcing that it will not take delivery of the $50 million jet it had planned to purchase before the credit crisis unfolded.
The canceled deal comes as many politicians voiced concern about how banks are spending government bailout money. Obama called it not “the best use of money at this point,” calling such jets “outrageous” spending for a company getting taxpayer dollars, said a White House official who spoke on condition of anonymity because the official was describing private conversations.
Citigroup said late Monday that it paid a deposit in 2005 to acquire the jet, a Dassault Falcon 7X, pictured at left, and that it did not plan to use government money for the purchase. Citi is also planning to cut the number of corporate jets in its fleet from five to two, said a person who also spoke on the condition of anonymity because the details have not been made public. The Associated Press; AP file photo
