Some Bailout Banks Hold On to Corporate Jet Perks
June 19, 2009 - 10:44 AM<br />
The Wall Street Journal said flight records show that executives at Regions Financial Corp., Bank of America Corp., Morgan Stanley and Citigroup Inc. had used corporate jets for personal use throughout the financial crisis. The Journal reviewed Federal Aviation Administration flight records of 14 federally aided banks that register planes in their own names.
Representatives of the banks were not immediately available for comment.
The use of corporate jets has become controversial during the credit crisis as critics of large companies question the cost of owning and operating the aircraft, especially for businesses receiving government help.
In November, executives of automakers Ford Motor Co., General Motors Corp. and Chrysler LLC were sharply criticized for flying on corporate jets to Washington to ask Congress for federal bailout money.
Earlier this year, the Obama administration expressed displeasure over Citigroup's plans to buy a new corporate jet after receiving $45 billion in government bailout money, and the bank reversed course and canceled the order.
The Journal noted that other banks have curbed or halted the use of company planes for personal use, including Marshall & Ilsley Corp. and Synovus Financial Corp.
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