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Jet Canceled - [was Re: Re: Bailed Out Citigroup Stimulates French Economy By Purchasing $50 Million Corporate Jet]
From: David Farber <dave () farber net>
Date: Tue, 27 Jan 2009 16:02:46 -0500
Begin forwarded message: From: Lauren Weinstein <lauren () vortex com> Date: January 27, 2009 12:21:18 PM EST To: David Farber <dave () farber net>Subject: Jet Canceled - [was Re: [IP] Re: Bailed Out Citigroup Stimulates French Economy By Purchasing $50 Million Corporate Jet]
Dave, After a reportedly strongly worded phone call yesterday from the Obama administration, Citigroup is apparently now canceling delivery of the luxury jet under discussion. But it's sad that it required such a call to inspire Citigroup to do the right thing. http://abcnews.go.com/Business/Politics/Story?id=6740011 --Lauren-- Lauren Weinstein lauren () vortex com or lauren () pfir org Tel: +1 (818) 225-2800 http://www.pfir.org/lauren Co-Founder, PFIR - People For Internet Responsibility - http://www.pfir.org Co-Founder, NNSquad - Network Neutrality Squad - http://www.nnsquad.org Founder, PRIVACY Forum - http://www.vortex.com Member, ACM Committee on Computers and Public Policy Lauren's Blog: http://lauren.vortex.com - - - On 01/27 11:46, David Farber wrote:
Begin forwarded message: From: "David P. Reed" <dpreed () reed com> Date: January 27, 2009 7:48:03 AM EST To: dave () farber net Cc: ip <ip () v2 listbox com>Subject: Re: [IP] Re: Bailed Out Citigroup Stimulates French EconomyBy Purchasing $50 Million Corporate Jet The financial firms, having been "bailed out" seem to operate bydifferent notions than the rest of the corporate economy. At least twomajor Fortune 100 tech companies I have personal experience of have*completely* stopped normal travel in the severest travel freezes I haveseen. This decision to continue to believe in way above first class travel (penalties are not *that* big in contracts) is not careful husbanding of assets on would expect from compainies in tough times. Tough times call for tough decisions. And sometimes deciding that for the long term, outsize bonuses and private jets are "out" is wise management. Not "bastards", just folks who must be completely out of touch with reality. David Farber wrote:Begin forwarded message: From: Jonathan Stade <jstade () mtroyal ca> Date: January 27, 2009 1:22:41 AM EST To: dave () farber netSubject: Re: [IP] Re: Bailed Out Citigroup Stimulates French EconomyBy Purchasing $50 Million Corporate Jet David Farber wrote:From: Lauren Weinstein <lauren () vortex com>Dave, once we've moved the current batch of residents out of Gitmo, Ihttp://consumerist.com/5139484/bailed-out-citigroup-stimulates-french-economy-by-purchasing-50-million-corporate-jethave an idea for how we can use that expensive prison facility atGuantanamo to make a group of well-heeled Wall Street suits seriouslyuncomfortable. But no torture/enhanced interrogations! After all, these financial wizards only helped to wreck the global enconomy while lining theirown pockets and taking taxpayer handouts. Well, OK, maybe just a fewstress positions to keep them "on their toes ..." Bastards.If one clicks through to the original NYPost article (http://www.nypost.com/seven/01262009/news/nationalnews/just_plane_despicable_152033.htm ), which has a slightly higher standard of journalism applied to the writing, one finds a couple important facts which are skipped in the Consumerist posting: a) the decision to purchase was two years ago, "Citigroup decided toget its new wings two years ago, when the financial-services giant wasflush with cash, but it still intends to take possession of the jet this year despite its current woes, the source said."b) Citiflight is at the same time trying to sell off two of its Falcon900EXs, valued at approximately $27M each. If two years ago means 2007, then the purchase price was likely not $50M, probably more around $41M (cf. http://www.flightglobal.com/blogs/flight-international/2007/05/onboard-the-7x.html) , and perhaps even lower if the commitment was 2006. Given that cancelling a contract of this size usually will involvefines for default, it certainly isn't clear that taking possession is abad financial decision. In a slightly perverse argument, selling two planes for $54M while buying one for $41M, thus avoiding a big cancellation fee and reducing maintenance costs from two older planes to one new plane could actually be called a cost-cutting measure.I know the Gitmo comments were in jest, but... too soon for me to findhumour in it. ~Jonathan Stade ------------------------------------------- Archives: https://www.listbox.com/member/archive/247/=now RSS Feed: https://www.listbox.com/member/archive/rss/247/ Powered by Listbox: http://www.listbox.com------------------------------------------- Archives: https://www.listbox.com/member/archive/247/=now RSS Feed: https://www.listbox.com/member/archive/rss/247/ Powered by Listbox: http://www.listbox.com
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- Jet Canceled - [was Re: Re: Bailed Out Citigroup Stimulates French Economy By Purchasing $50 Million Corporate Jet] David Farber (Jan 27)