Business and Finance

NEW YORK–A number of executives of banks that received bailout money from the U.S. government have continued to use corporate jets for personal use despite controversy over such perks, according to a report yesterday.

The Wall Street Journal said flight records show that executives at Regions Financial Corp., Bank of America Corp., Morgan Stanley and Citigroup Inc. had used corporate jets for personal use throughout the financial crisis. The Journal reviewed Federal Aviation Administration flight records of 14 federally aided banks that register planes in their own names.

Bank of America spokesman Scott Silvestri said the Charlotte, N.C.-based bank is currently implementing a new policy under which personal use of corporate aircraft will not be permitted.

Citigroup’s policy restricts personal use of company-owned planes to a limited number of executives, "who are encouraged to fly commercial whenever possible to reduce expenses," spokesman Stephen Cohen said.

Calls to Regions Financial and Morgan Stanley were not returned business cards printing.

The use of corporate jets has become controversial during the credit crisis as critics question the cost of owning and operating the aircraft, especially for businesses receiving government help.

In November, executives of automakers Ford Motor Co., General Motors Corp. and Chrysler LLC were sharply criticized for flying on corporate jets to Washington to ask Congress for federal bailout money.

Earlier this year, the administration of President Barack Obama expressed displeasure over Citigroup’s plans to buy a new corporate jet after receiving $45 billion (U.S.) in bailout money, and the bank cancelled the order.

The Journal noted other banks have curbed or halted the use of company planes for personal use, including Marshall & Ilsley Corp. and Synovus Financial Corp.

Associated Press

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