Citigroup Spokesman: TARP funds will not be used to purchase $50 Mln jet
Citigroup Inc spokesman said Tuesday that TARP funds will not be used to purchase a $50 million corporate jet.
It is important to note that TARP funds will not be used for these purchases. Citi will continue to comply with all TARP requirements, Citigroup spokesman, Mike Hanretta said in an email to Chicago Tribune, referring to the government financial firm bailout known as the Troubled Assets Relief Program
Citigroup has received $45 billion in federal bailout money to after suffering big losses due to bad investments in the current financial crisis.
Banks which received bailouts are under scrutiny for the use they make of the billions of taxpayer dollars.
On Monday, a person familiar with the matter told Reuters that the bank signed a contract several years ago to buy a Dassault Falcon 7X for $50 million and planned to receive it this year.
The jet is a French-made luxury jet which seats up to 12 in a plush interior with leather seats, sofas and a customizable entertainment center, according to Dassault's sales literature.
Citigroup denied a similar report from the New York Post on Monday.
Citi has no intent to take delivery of any new aircraft, it said in a statement to the Associated Press.
Correction:An article on a Tuesday, January 27, 2009 article incorrectly stated that Citigroup Inc will not buy a $50 million corporate jet. A spokesman said only that bailout money from the TARP program would not be used for these purchases.