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Another financial asking for a bailout?
1 posted on 07/13/2009 8:34:27 AM PDT by Kartographer
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To: Kartographer

They will get it they were the top donors to the abomanations inaugeration

http://www.newsmax.com/insidecover/citibank_obama_donors/2009/01/15/171703.html


2 posted on 07/13/2009 8:39:46 AM PDT by FromLori (FromLori)
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To: Kartographer

p.s. related

http://www.businessinsider.com/the-cit-test-will-the-government-allow-markets-to-work-2009-7#comment-4a5b4184796c7a490046db7b


3 posted on 07/13/2009 8:41:01 AM PDT by FromLori (FromLori)
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To: Kartographer

They might get a bailout, but they’ve been burning their bridges with customers all spring long.

If they don’t go BK, they’re going to be on life support for a very long time, because once a small business has their credit yanked, they go somewhere else or go out of business. Either way, their business won’t be coming back to CIT anytime soon, if ever.

I have reports from farmers and ranchers of CIT freezing or closing accounts, even if they were paid timely and up to date. Simply to reduce their exposure. Many think of it as “OK, fine, see ya, don’t let the gate hit you where the Good Lord split you...”

Overall, CIT ran a very stupid business model.


5 posted on 07/13/2009 9:33:46 AM PDT by NVDave
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To: Kartographer

Junk bond credits cannot be finance companies - because the money costs them too much to lend - meaning they could only lend to very questionable credits to make money. Death spiral, either they are bought and their ratings go up and borrowing costs drop or Uncle Sugar backs them up. Else, sell everything.

Goldman has $3BN outstanding so you might have to bet on the government bailing them out.


6 posted on 07/13/2009 10:02:49 AM PDT by Titus-Maximus (Light from Light)
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To: Kartographer

no bail out for them, they lend to the smaller business and not to the big boy insiders.

Remember Obama only bails out wall street, Obama has no interest in main street.


7 posted on 07/13/2009 10:09:50 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Kartographer

Looks like their toast today.


8 posted on 07/13/2009 10:22:58 AM PDT by taxtruth
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