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January 2nd, 2009
11:58 AM ET

The party's over: Citi expense accounts frozen

James Doran
The Guardian

The US government has seized control of Citigroup's staff Christmas party budget and set tight restrictions on the use of its corporate jet in exchange for its $45bn (£28bn) bail-out.

The measures are among a raft of restrictions on expenses detailed in the small print of filing made by Citi on New Year's Eve with the US financial regulator, the Securities and Exchange Commission.

The filing was made to formalise restrictions on executive pay and bonuses that Citi's chief executive, Vikram Pandit, was forced to adopt in exchange for the US government bail-out, which includes guarantees on $306bn of troubled assets on top of $45bn of loans.

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Filed under: Bailout Turmoil • Citigroup • Finance
soundoff (4 Responses)
  1. GF, Los Angeles

    I'm appalled that they even sponsored yesterday's Rose Bowl with our taxpayer dollars.

    January 2, 2009 at 4:36 pm |
  2. Annie Kate

    The US government should have gone further in what they seized control of for the bailout – bonuses should be zeroed out and executives should have to take a large pay cut. Some of these people make an obscenely large salary each year compared to the rest of us and they are the ones that have made life for the rest of us "have-notters" miserable financially. They should have to share some of the misery.

    January 2, 2009 at 4:32 pm |
  3. earle,florida

    As the old saying goes, "to little to late"! This company (Citi-group) is burnt-toast. It should have been sent to the trash bin when Lehman failed! The public's on the hook for all their debt. This prediction/reality will show it's ugly head in "late 2009",when "Hyper-Inflation" rears it's ugly head ,... and not even Carvel's Ice Cream could sweeten the taste?

    January 2, 2009 at 3:52 pm |
  4. Cindy

    Well it's about time that the government did something! They should have done these things and more from the get go!!

    Cindy...Ga.

    January 2, 2009 at 2:53 pm |