The efforts of the U.S. government and the Treasury Department to avoid misuse of bailout funds amid an unprecedented financial crisis in America has led Citigroup Inc. on Tuesday to cancel its move to take possession of a new corporate jet which had planned to buy.
Citigroup is one of the banks which recently received government funds to help it weather the economic downturn. At $45 billion, it’s one of the largest recipients of capital.
Citi has no intent to take delivery of any new aircraft, the New York-based bank said in a statement Tuesday, according to the Associated Press.
On Monday, the New York Post reported that Citigroup was to planning to take delivery of jet valued at $50 million.
After the news, White House Press Secretary Robert Gibbs said President Barack Obama “does not believe that is the best use of money at this point, according to the Financial Times.
An official in the Obama administration called Citigroup on Monday to relate the President's position, AP reported Late that day, Citi confirmed in a statement it placed a deposit in 2005 to buy a new corporate jet but noted it didn't plan to use government funds for the acquisition.
Citgroup had previously said cancelling the order “would result in millions of dollars in penalties.”