January 27th 2009
Why Can’t The Just Be Smart In The First Place

T
he once high-flying money men of America’s banks are the linchpins of the proposed fiscal stimulus program, but they just can’t seem to get anything right the first time around.
We give ‘em $350B, and they use it for all sorts of outrageous things, like buying stock in Chinese companies or taking delivery on that new business jet, and don’t get it right until they get bashed for it, like this:
Pressured by the Obama administration, Citigroup Inc. reversed course and said it will not take delivery of a corporate jet it previously planned to purchase.
The canceled deal comes amid a chorus of concerns from politicians who are worried about how banks that have received federal funds are spending the money. Citigroup has received $45 billion in capital from the government in recent months amid the ongoing credit crisis.
Yeah, the clip might say the Obama admin pressured the bank into dropping its high-visibility excess, but do a search of “citibank jet purchase” on Google blog search and you’ll find nearly 1.5 million hits. That’s pressure.
For the record, I know Citi made the deposit pre-meltdown and could lose that deposit by not taking delivery, but c’mon, didn’t they watch the Big 3 hearings? If they’re not savvy enough to figure out this little public image thing, are we sure we want to trust them with the big stuff? Noooo.

