The US financial sector’s new political masters began exerting their influence on Tuesday as Citigroup was forced 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, expressed strong opposition to the move.
Mr Geithner’s action came as he raced against time to change public perceptions of the government’s bank rescue effort – the troubled asset relief programme inherited from the Bush administration....Some Washington officials say they are amazed bythe financial sector’s tin ear to public sentiment at a time when it is heavily reliant on government aid.
One has to love the first sentence. Now, let's hope next on the agenda is telling them to lend damn it! And stop giving bonuses to executives with public money.
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