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 ...
Obama is thumbs up and giddy in the Oval Office.
What a waste. They coulda bailed me out for 1/1000th of that, but I guess it wouldn’t help if the dollar is soon worthless anyway...
I only say that because, I’m no longer sure of anyone anywhere, including here.
Anyone see Giethner this morning on Meet the Press? When asked if he would like to see AIG prosper after they pay back the TARP money, he said he didn’t care if they do or not. I thought we bailed them out because they were too big to fail.
I was just thinking that.
Oh, you are one of those people that knows what gouging is. Couly you please tell us?
In the Middle ages, most loans were very short-term and carried the interest of 100-120% (in Germany, for instance). Was that gouging or usury?
They may have gone bankrupt or something.
This is much better than expected.
You bet!
Look at the bright side, think of all the government employed printing press operators jobs that were saved or created.
And they already have a premium health care plan to boot!
The DOW futures are already heading south as of 6:00 pm ET.
Lending to this entity at that time represents malfeasance, at best. Using taxpayer funds seems criminal to me.
Someone needs to stop tarp or stimulus funds from going to entities that more than likely will file BK within a few months.
We are so screwed.
Immoral userers.
Idiotic holders of such credit cards toting those rates who expect taxpayers and "the rich" to take care of them because of their complacent idiocy.
Good grief, how stimulating.
What I want to know are who are the inside players at CIT and their ties to the Obama regime. I suggest there will be a handful of big donors and close friends of Bernake and Gietner.
“”Watch for a huge spike in small business bankruptcy.”
The Marxist Make-over of America is on schedule! “
CIT was a major financier of small and medium sized businesses.
Payable on demand within 30 days via no interest card contract.
The lack of Fascist concern by most when it comes to our present government agenda is puzzling to me.
http://www.time.com/time/magazine/article/0,9171,1832861-2,00.html
The Great American Yard Sale
That’s why no one really objected to Citibank’s becoming a Middle Eastern—financed bank, because it’s better than Citi’s becoming a dead bank. “But clearly we’re worse off as a country,”
America has been severely dumbed down by public education over the last 35 years. U.S. History is an “elective”. Civics and basic government corses have been replaced by “Problems of Contemporary Society”
Thank you for reciting a commercial. It would be more helpful if your tried to say something relevant to my post.
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