Citigroup Inc. has been under the microscope even more since it received $45 billion in government bailout money. Last week, the beleagured bank fell to pressures from the government, politicians and anyone who was against the banking bailout for ordering a luxury plane for $50 million. Now, two congressmen are urging the Treasury to cancel its deal to pay the New York Mets $400 million to name the baseball team's new stadium Citi Field. This is the new reality for banks that have taken the government bailout money.
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House members Dennis Kucinich, D-Ohio, and Ted Poe, R-Texas, urged Treasury Secretary Tim Geithner to intervene with the New York Mets naming rights deal. Here's an excerpt of their letter:
Citigroup is now dependent on the support of the federal government for its survival as an institution. As such, we do not believe Citigroup ought to spend $400 million to name a stadium at the same time that they accept over $350 billion in taxpayer support and guarantees.
Shouldn't big corporations play by the same rules that ordinary citizens who receive government assistance do? Some say corporations have never done so and wonder why they should start now. The answer is these are not ordinary times. The same way of doing business have led to the crisis, so something drastic has to happen. After all, when citizens receive certain government aid such as food stamps, aren't they limited to some extent on how they can spend their money? Food stamp recipients aren't allowed to spend on alcohol or tobacco.
Some at Citi argue that it signed those deals long before it received the bailout money, but there's likely a loop hole that lets Citi out of the contract. New York taxpayers partially funded the Mets new ball park, anyway, so essentially the taxpayers would be negotiating with themselves to let Citi out of a contract. And, if push came to shove, many taxpayers would likely choose to spend $400 million on better schools or lower taxes rather than a stadium named Citi Field - Gerald Magpily
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See Newsday article
