Citigroup, which has received $45bn in US federal aid, is going through with plans to buy a $50m jet, but a US senator called the deal absurd and wants the Obama administration to block it, reports Reuters. The bank signed a contract several years ago to buy a Dassault Falcon 7X and plans to accept delivery later this year. Citi said in a statement that refusing delivery now would result in millions of dollars of penalties. The bank also said it is selling existing aircraft, the proceeds of which will more than pay for the new plane. The New York Post, which reported Monday that Citi intended to proceed with the new plane, said the group was also selling two jets estimated to be worth $27m each.

This entry was posted by Gwen Robinson on Tuesday, January 27th, 2009 at 5:31 and is filed under Capital markets. Tagged with citi. Edit this entry.