Citi Reverses On Jet; Score Another One For The Media

January 27, 2009 8:49 AM EST
After taking heat yesterday, today Citigroup (NYSE: C) said it has no intent to take delivery of any new aircraft.

Yesterday, news from the NY Post noted that Citi, fresh off receiving $45 billion in rescue funds from the U.S. government, decided to go ahead with the purchase of a $50 million luxury jet.

Citigroup decided to make the jet purchase two years ago, when things were different, but by not cancelling the order or selling the option on the jet, people were sure to be heated - and they were.

Credit the media with two wins in the past couple days. First, Ex-Merrill CEO John Than, after being lambasted in the media for a ridiculous $1.2M office re-decoration, said he would pay for it with his own money and now the Citi news today.

This is a clear warning to any company that received federal bailout money that their every move is being monitored.

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