The Obama Loan Modification Program finally a Success Story?
Team Obama's Agenda - Putting Executives First!
Before I point out the terrific job Citibank has done helping people enroll in Obama’s Loan Modification Program I wanted to show you a few pictures of the Luxury Private Jet CitiGroup purchase for executives AFTER they accepted $45 in Tarp Funds. You can read the full story of the Citi Jet Purchase in the New York Post. Team Obama isn’t exactly promoting this as “Proof” of success.
If You don’t have time to read the Full Article here are a few excerpts:
Beleaguered Citigroup is upgrading its mile-high club with a brand-new $50 million corporate jet - only this time, it's the taxpayers who are getting screwed. Even though the bank's stock is as cheap as a gallon of gas and it's burning through a $45 billion taxpayer-funded rescue, the airhead execs pushed through the purchase of a new Dassault Falcon 7X, according to a source familiar with the deal.
People like to bash Team Obama and their contribution to the Average American’s financial woes. Finally some good news out of Citibank!
Citi has enrolled about 100,000 borrowers in the Obama program, but had made only about 270 of those modifications permanent as of the end of last month, according to a Treasury Department report. But Das said the low number resulted from a "reporting error" and said it will rise dramatically by year-end.
See there is positive proof the $75 Billion Loan Modification program is working. Out of 100,000 enrollees Citi has already helped 270 people!!! Money well spent! Sure that means 99,730 of those people have received no help and wasted a whole lot of time filling out paperwork. But hey this is America and if less than 1/3 of 1% of the people are helped… then that’s progress right? Citi only received $45 Billion in TARP funds. And they are in fact still making mortgage loans they just are not helping people who are sinking as the Administration has proposed. It’s business as usual.
And yes Citi did recently announce they are paying back the TARP funds, and why wouldn’t they? They are shifting from TARP to Stock Financing (Who is buying diluted Citi Stock… and who is brokering the deal?), and other Government Loan programs so they can get around executive compensation rules and pay those bonuses. Banks are taking no real risk, as deposits are fully insured to $250,000 by the Federal Government. So this is just proof that Obama’s talk results in nothing but tax payer expense. The country is bankrupt, people are suffering and no one in the Political Spectrum is taking any real action that is helping Americans. Talk the talk… then walk… away to the next Bank Friendly spending bill.
Way to go Team Obama… doing America and Americans Right!
The Obama administration's pay czar, Kenneth Feinberg, approved all of Citi's executive pay packages in October:
Chief Financial Officer John Gerspach's base compensation was hiked from $400,000 to $500,000 effective Nov. 1. James Forese, co-head of global markets, enjoyed an even heftier pay raise -- his base salary jumped from $225,000 to $475,000. Vce chairman Stephen Volk didn't score a salary increase from his current rate of $500,000, but Volk, Forese and Gerspach all received sizable stock salary awards. Volk will rake in $3.4 million in stock, Gerspach will collect $2.92 million and Forese will take in $5.4 million.
Hopefully they will be able to pay their mortgages or they didn’t get them from Citi. Deception, lies and denial; the political recipe for prolonging the inevitable crash.
More About the Private Jet Purchased AFTER CitiGroup Received Tarp Funds
The French-made luxury jet seats up to 12 in a plush interior with leather seats, sofas and a customizable entertainment center, according to Dassault's sales literature. It can cruise 5,950 miles before refueling and has a top speed of 559 mph.
There are just nine of these top-of-the-line models in the United States, with Dassault's European factory churning out three to four 7Xs a month.