Tuesday, January 27, 2009
Are U.S banks now getting the message?
The embattled Wall Street bank Citigroup has cancelled its purchase of a $50m (£36m) corporate jet after a political outcry on Capitol Hill over the price tag. After defending its plan to buy a French-made Dassault Falcon 7X yesterday, Citigroup performed an abrupt u-turn with a terse statement this morning saying: "We have no intent to take delivery of any new aircraft." Citigroup has received more than $45bn in taxpayers' money to stay afloat amid ballooning losses from mortgages and credit-related derivatives. From the White House downwards, politicians have criticised the bank for upgrading its fleet of aircraft.