Dow
     +0.00
12938.67
+0.00
 |
S&P 500
     +0.00
1357.66
+0.00
 |
Wil 5K
     +0.00
14147.55
+0.00
 |
Nasdaq
     +0.00
2933.17
+0.00
 |
EAFE
     +0.00
54.37
+0.00
 |
OPEC Oil
     +1.68
120.88
+1.41%
 |
10Y Yield
     +0.01
2.01
+0.55%
Econwatch
March 23, 2009 12:15 PM

New Corporate Jet Scandal Cleared For Take-Off

By
Daniel Carty
Topics
Banking
(CBS/iStockphoto)
It seems like ages since the last corporate jet scandal, but JPMorgan Chase has stepped up to fill the void.

The bank is set to plow $18 million for renovations, on top of $11 million for a 10-year lease, into a private hangar at a New York airport — a move that the hangar's previous occupant says is an act of retribution against him on the part of Westchester County, reports the Journal News.

The president of Avitat Westchester says that county officials set up a "bogus" bidding process for a new lease on the hangar after he filed several lawsuits complaining of unfair business practices, the paper reports.

"I think it's a bit of a hoodwink," Michael Dolphin told the paper. Avitat has operated out of the hangar in question for 16 years.

County officials say JPMorgan, which operates a small fleet of private jets, will make the hangar into a "state of the art green building," county spokeswoman Donna Greene said in a written statement.

"JPMorgan is a high quality corporate citizen and has an established record as a reliable tenant of the airport," Greene added. "The proposal from JP Morgan is the best deal for county taxpayers and the best deal for the environment."

JPMorgan has taken $25 billion in federal bailout money, but says none of those funds will go toward the hangar. The bank also is not involved in any of the lawsuits.

There will be a meeting Monday of Westchester's Board of Legislators, which has yet to approve the new lease.

And on top of the hangar controversy, JPMorgan is going ahead with plans to spend $120 million on two new corporate jets, reports ABC News.

"It's a remarkably boneheaded decision," Nell Minow, the editor and founder of The Corporate Library, a group that provides independent corporate governance research and analysis told ABC News. "It's completely tone deaf."

In January, Citigroup took heat for its plan to spend $50 million on a new jet. Executives eventually returned the jet.

Add a Comment See all 18 Comments
by opedanderson March 23, 2009 6:16 PM EDT
FAKE FAKE FAKE

RED HERRING ALERT!!!!!!!

Don't get sucked into this nonsense. While it is true that these executives have no shame and should be thrown on the street. The Obama administration are doing old tricks right out of the GW Bush playbook.

When things get hot around your considerable ears, get people riled up about something else!

Anybody remember "Yellow Terror Alerts"?

Obama! Cheney and Bush would be so proud of you!

Change we can Believe in!!!!!! Yes We Can! Yes We Can!
Reply to this comment
by debinok1 March 23, 2009 5:56 PM EDT
It does not matter if the money they are spending came from the bailout. The fact is they got a BAILOUT. If they did not NEED it, then they should have kept their grubby paws OFF!!!
Reply to this comment
by waltben March 23, 2009 5:42 PM EDT
Please, please, PLEASE can someone tell me why these idiots can't read a newspaper, a news web site, ANYTHING that will tell them how screwed up this all is?
Reply to this comment
by RepubsSuck March 23, 2009 5:37 PM EDT
Posted by dmw1167 at 1:12 PM : Mar 23, 2009


Glad you retired moron...and by the way, Teleconferencing was obviously invented since you retired!
Reply to this comment
by sjbj2322 March 23, 2009 5:34 PM EDT
Which part of "business as usual has come to an end" do these corporations not understand. This is absolutely ridiculous. Don't tell me how many more customers they can see in a day by having their own private jets. Think of how many more they can see per day as a result of such technology as internet web links. This is pure garbage that all this lavish excess is needed in order to maintain business. This only thing this kind of thing does is perpetuate the American fraud.
Reply to this comment
by FreddyBartholomew March 23, 2009 5:32 PM EDT
Funny how the everyday corporate excesses of the last eight years are now "scandals." The Obstructionist hypocrisy would be laughable if the country weren't in such dire straights. Republicans...the party of irrelevance.
Reply to this comment
by renonv5 March 23, 2009 5:27 PM EDT
Obullshit and company are keeping this stirred up so you will not notice the other things that are taking place.
Posted by dmw1167

Is this the way president's of large companies speak?? You almost had us there, with your private jet and all, but talk about ignorance and we will all think of you. I can't stand it when some pompous azz gets on here and talks "down" to everyone else as if they just don't quite get "it". I suppose you can concoct any kind of life story you want to when on the internet and you have just proven it. Does dmw stand for dimwit??
Reply to this comment
by toolmangler-2009 March 23, 2009 5:24 PM EDT
18 million will build 5 hangers big enough for three planes each. If they are putting that much into one hanger, it will have gold rest room fixtures +.
Reply to this comment
by makemyday2day March 23, 2009 5:12 PM EDT
dmw1167 - I find your posts to be belittling and snobbish. As a matter of fact, I HAVE flown commerical in the past few years and I give Frontier Airlines a 5-star rating. They've actually arrived EARLY on several occasions. So since you're some "retired" chief executive officer, it's only obviously how you feel "qualified" to defend the pathetic actions of JPMorgan Chase. No surprise here - you guys are all alike: snobby crooks who could care less about the rest of the 'little' people.
Reply to this comment
by hunterdon6 March 23, 2009 4:05 PM EDT
If they had this kind of money to spend, why did the taxpayers have to bail them out? Oh I forgot, Corporate GREED!
Reply to this comment
See all 18 Comments
.

Follow Econwatch

Scroll Left
Scroll Right More »
CBS News on Facebook
  • Building You a Better Morning

  • CBS This Morning

    "CBS This Morning," anchored by Charlie Rose, Gayle King and Erica Hill, airs weekdays from 7 to 9 a.m. ET and at the same time in other time zones.
    Learn more...