Quick Fix for Corporate Greed? A Call from the White House
Tuesday, January 27, 2009 at 1:05PM President Obama has been in the office for exactly one week, yet he's already proving to have little patience for excessive corporate spending, especially where bailout dollars are concerned.
Various media sources report that, upon learning that Citigroup intended to use federal bailout dollars to upgrade to a $50 million corporate jet, White House officials called the bank and "told execs to 'fix it.'"
On Monday, White House Press Secretary Robert Gibbs told ABC News, "The president said this during the transition, as it related to the auto companies using private jets: [He] doesn't believe that's the best use of money at this point." Today, Citigroup issued a statement, saying: "We have no intent to take delivery of any new aircraft."
The New York Post, in a story titled "Just Plane Despicable," reported Monday that "Citigroup, which has received $45 billion in government bailout funds, is about to upgrade to a new $50 million, twelve-seat corporate jet.
The plane, the Dassault Falcon 7X [see photo below], is a luxurious jet with a range of 5,950 nautical miles (meaning it can fly from New York to all of Europe and South America, as far east as Riyadh, and as far west as Honolulu or Petropavlovsk, Russia). The Post reports it has "plush interior with leather seats, sofas and a customizable entertainment center."
The Obama administration intervenes in Citigroup's plane plans. NY Post
How do you feel about the Obama administration's tough stance on corporate greed?
C.A.R. Staff
Reader Comments (3)
President Obama Gets It! He knows what the public expects when it comes to the bailout funds. The lack of accountability from the previous administration is glaring when you consider the quick response from this administration. I agree with the President and hope to see more tougher stances.
Just the kind of research and public advocacy we need from the media today.
Let's hope the new administration continues to both encourage such action and embraces the message it creates.
Without sufficient oversight, it was bound to happen. Let us hope the administration continues to insist on corporate responsibility and accountability.