The US financial sector’s new political masters on Tuesday forced Citigroup to scrap the purchase of a $50m executive jet that was seen as a misuse of money at a time when the bank is reliant on public support. Only a day earlier, Citi had insisted it would complete the acquisition of the aircraft. But it backed down after officials acting for Tim Geithner, the new Treasury secretary, criticised the move. Geithner’s action came as he launched an effort to change perceptions of the government’s Tarp bailout scheme, unveiling rules to provide more detail on decisions over how much capital to inject into each bank under the Tarp.

This entry was posted by Gwen Robinson on Wednesday, January 28th, 2009 at 5:50 and is filed under Capital markets. Tagged with citi. Edit this entry.