Stanford paid for Sen. Cornyn’s ‘travel expenses’ to Caribbean

By GottaLaff

Jet Set:

Bloomberg notes that Stanford “cultivated his image by shuttling politicians in corporate jets.” One politician he was particularly close to was Sen. John Cornyn (R-TX):

The money trail led to the Caribbean, where Texas Sen. John Cornyn took a three-day trip in late November 2004. Cornyn spokesman Kevin McLaughlin confirmed to Texas on the Potomac’s Stewart Powell that Cornyn’s Senate disclosure form showed that Stanford’s firm had paid $7,441 in 2004 to cover the senator’s travel expenses to the Caribbean island of Antigua as part of a “financial services industry, fact-finding mission hosted by a constituent company with substantial operations on site.”

Cornyn has issued a response to the revelations: “No one is above the law and prosecutors should follow the facts, wherever they may lead.” Stanford contributed heavily to former Sen. Tom Daschle (D-SD), the Bush Inaugural Committee, and a host of other prominent leaders of both parties.

This story's growing more legs every day. It's one of the up and coming octopi of news cycles.

Obama to Citigroup: Get Rid of that Jet

By GottaLaff

The Anti-Bush:

That was fast: The Obama administration told Citigroup to get rid of its $50 million jet, just one day after reports about the expenditure made their way into the public eye, ABC News reports.

From ABC:

The high-flying execs at Citigroup caved under pressure from President Obama and decided today to abandon plans for a luxurious new $50 million corporate jet from France.

The bank used TARP funds to purchase a new corporate jet for executives.

The decision came 24 hours after the banking giant, which was rescued by a $45 billion taxpayer lifeline, defended buying the state-of-the-art Dassault Falcon 7X — one of nine to be flying in U.S. skies — as a smart business deal.

The jet, the epitome of corporate prestige and privilege, can carry 12 passengers in elegant comfort.

ABC News has learned that on Monday officials of the Obama administration called Citigroup about the company’s new $50 million corporate jet and told execs to “fix it.”

Fixed.

Wall Street still flying corporate jets

By GottaLaff

Most of us can barely afford our cars:

Six financial firms that received billions in bailout dollars still own and operate fleets of jets to carry executives to company events and sometimes personal trips, according to an Associated Press review. [...]

[S]ome firms are cutting back, either by selling the planes or leasing them.

Still, Wall Street's reliance of the rarified mode of travel has largely escaped the scorn poured on the Big Three automakers. [...]

So why were Wall Street executives spared from the corporate-jet backlash? One reason is that they didn't have to go before Congress to request bailout money, so no one asked how they traveled to Washington.

But an AP review of Securities and Exchange Commission filings and FAA records offers a glimpse of Wall Street firms' ownership and use of private aircraft. Among the findings:

• CITIGROUP: Has a wholly owned subsidiary, Citiflight Inc., that handles air travel for executives. Citi spokeswoman Shannon Bell refused to comment on the size of the firm's fleet but said it has been reduced by two-thirds over the past eight years. FAA records show four jets and a helicopter registered to the company.

In 2007, then-CEO Charles Prince used company aircraft for personal trips for security reasons. Those trips cost the company $170,972 for that year. Current CEO Vikram Pandit began reimbursing the company for all personal travel on company planes since being appointed in November 2007.

Use of Citigroup's aircraft currently is confined to a "limited number of executives," Bell said. "Executives are encouraged to fly commercial whenever possible to reduce expenses."

• MORGAN STANLEY: Has reduced its executive jet fleet size from three planes to two since 2005, company spokesman Mark Lake said. FAA records show two Gulfstream G-Vs as registered to the company.

In 2007, CEO John Mack's personal use of company aircraft totaled $355,882, according to a February proxy filing. Mack is required to use company aircraft for personal trips for security reasons.

• JPMORGAN: Registered as the owner of four Gulfstream jets, including a 2007 ultra-long range flagship G550 model, FAA records show. A G550 ordered for delivery that year would have cost roughly $47.5 million.

CEO Jamie Dimon is required to use company aircraft for personal trips; In 2007, his personal use of company jets totaled $211,182, according to a May filing with the SEC. Company spokesman Joe Evangelisti refused to comment on whether the bank has changed its policy on corporate aircraft use since accepting $25 billion in TARP money.

• BANK OF AMERICA: Registered as the owner of nine planes, including four Gulfstreams, FAA records show. Company spokesman Scott Silvestri refused to say whether the company has changed its policy on corporate aircraft use since taking $15 billion in bailout money.

CEO Kenneth Lewis, also required to use company aircraft for personal trips, racked up $127,643 in such travel last year, according to a March filing with the SEC.

• WELLS FARGO: Owns a single jet that "is strictly for business purposes under appropriate circumstances," spokeswoman Julia Tunis Bernard said. "No (government) funds will be used for corporate jet travel," she added.

Prius should start making airplanes.