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CIT Files for Bankruptcy (received 2.3 billion in bailout money)
NYT ^

Posted on 11/01/2009 1:59:46 PM PST by Chet 99

Update | 3:46 p.m. Three months ago, the CIT Group barely averted what it considered to be a ruinous bankruptcy filing that would likely have put the 101-year-old lender out of business.

On Sunday afternoon, the company filed for Chapter 11 — but under a so-called prepackaged bankruptcy plan that will enable it to emerge from court protection by the end of the year, under the control of its debtholders. (Read the filing after the jump.)

The filing, made in a Manhattan federal court, will still mean much pain for many parties, beginning with taxpayers. CIT received $2.3 billion in government aid last year, a bailout that came in the form of preferred stock. That will almost certainly be wiped out in the bankruptcy process, the first realized loss in the government’s rescue of the financial system.

(Excerpt) Read more at dealbook.blogs.nytimes.com ...


TOPICS: Breaking News; Business/Economy
KEYWORDS: bailouts; bankruptcy; cit; citgroup
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To: Chet 99

This was a small business bank. This is not good news at all. Obamay let this one fail, but others not. This is really, really, bad.


21 posted on 11/01/2009 2:16:28 PM PST by lookout88 (.combat rescue officer's dad,)
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To: Chet 99
Check out the futures at Bloomberg.com here. I'm not familiar with how futures work, so I'll ask if this is as bad as I think it is?
22 posted on 11/01/2009 2:18:00 PM PST by TwelveOfTwenty (Hey Nancy, how many jobs have been lost since you and the Democrats took Congress?)
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To: Chet 99

Anyone hear about Barney Franks proposal to give the executive branch carte blanche to bailout whoever is ‘too big to fail’ without going through the legislature?


23 posted on 11/01/2009 2:21:10 PM PST by Indy Pendance (Live Free Or Die)
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To: rbmillerjr
I’m sure they’re parachutes are packed, but I hope they feel alot of pain, after raising CC rates to 27 percent.

CIT and Citibank are two completely separate entities. No relationship exists between them.

24 posted on 11/01/2009 2:23:52 PM PST by willieroe
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To: Gritty

It stops when we say it stops and not until then.
Apparently, we’re not finished bending over yet.


25 posted on 11/01/2009 2:23:59 PM PST by Lorianne
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To: lookout88

I’m hoping BoA has to sell shares and will pay back bailout


26 posted on 11/01/2009 2:25:14 PM PST by Gondring (Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
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To: willieroe

My error! No effect on the market tomorrow. It has always been factored in!


27 posted on 11/01/2009 2:28:31 PM PST by WellyP
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To: Chet 99
The filing, made in a Manhattan federal court, will still mean much pain for many parties, beginning with taxpayers. CIT received $2.3 billion in government aid last year, a bailout that came in the form of preferred stock. That will almost certainly be wiped out in the bankruptcy process, the first realized loss in the government’s rescue of the financial system.

I expect a lot of other TARP gifts from taxpayers to big money political donors to disappear the same way. This may be the first loss "realized" on the books, but sensible people realized a year ago that most of the money flushed down the TARP toilet was gone.

28 posted on 11/01/2009 2:29:20 PM PST by TurtleUp ([...Insert today's quote from Community-Organizer-in-Chief...] - Obama, YOU LIE!)
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To: Chet 99
Small businesses...generating approx 70% of job growth in a normal (non-0bambi) economy and major CIT clients will take another hit.

Expect an up-tick in unemployment figures.

29 posted on 11/01/2009 2:33:43 PM PST by spokeshave (Obama can't unjump the shark "Obama Wa Nobel-sho Ni Ataeshinai" ("Obama Unworthy of Nobel Prize"))
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To: lookout88

It didn’t fail. They just wiped out the liability to the taxpayers. Almost everyone else will come out whole.


30 posted on 11/01/2009 2:36:13 PM PST by PAR35
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To: Nachum

Is this Citi?


31 posted on 11/01/2009 2:43:40 PM PST by Dubya-M-DeesWent2SyriaStupid!
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To: trumandogz

Yeah, that worked out soooo well!
SOB’s ~!


32 posted on 11/01/2009 2:45:30 PM PST by Recovering Ex-hippie (Pray for Israel! And Georgia ! And the Iranian people! and Honduras!)
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To: Chet 99
How's the bail-out working for ya, CIT Group?? The Zero sure saved ya .. didn't he?

Just the first of many...

33 posted on 11/01/2009 2:45:31 PM PST by Lurking in Kansas (Never argue with an idiot. They drag you down their level, then beat you with experience.)
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To: Chet 99

Ka ching...the people s*****d out of $2.3 billion, the bankers made out like bandits...and the Obama/Geithner team should go to jail for this.

And don’t say Bush...this was the doing of Bernanke/Geithner very conveniently in an election year for the Obama team.


34 posted on 11/01/2009 2:54:31 PM PST by RowdyFFC (The opinion of a wise Welshtino woman...)
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To: Chet 99
Check out the futures at Bloomberg.com here. I'm not familiar with how futures work, so I'll ask if this is as bad as I think it is?

The futures are unchanged from when I posted earlier, so I guess they're just not tracking them yet. False alarm!

35 posted on 11/01/2009 3:00:43 PM PST by TwelveOfTwenty (Hey Nancy, how many jobs have been lost since you and the Democrats took Congress?)
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To: Chet 99

The weather vane doth point in the direction the wind blows.


36 posted on 11/01/2009 3:06:31 PM PST by editor-surveyor (The beginning of the O'Bomb-a administration looks a lot like the end of the Nixon administration)
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To: OpusatFR
"Watch for a huge spike in small business bankruptcy."

The Marxist Make-over of America is on schedule!

37 posted on 11/01/2009 3:08:44 PM PST by editor-surveyor (The beginning of the O'Bomb-a administration looks a lot like the end of the Nixon administration)
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To: rockrr

Is this what you meant?


38 posted on 11/01/2009 3:11:29 PM PST by editor-surveyor (The beginning of the O'Bomb-a administration looks a lot like the end of the Nixon administration)
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To: Chet 99

Yeah, but just think how much worse it would have been if they had not received any bailout money.

They may have gone bankrupt or something.

This is much better than expected.


39 posted on 11/01/2009 3:11:43 PM PST by Ghost of Philip Marlowe (I'd rather be a teabagger than an ankle-grabber.)
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To: Ghost of Philip Marlowe

You forgot the sarcasm tag.

Please, tell me you forgot the sarcasm tag.


40 posted on 11/01/2009 3:13:14 PM PST by John W
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