[Nachum]

The list, ping

[TexasFreeper2009]

blew through 2.3 billion.. and STILL went out of business!

Thanks Government!

/sarc

[TexasFreeper2009]

for 2.3 billion, I could turn my entire downtown into a paradise!

Sigh.

[Parley Baer]

It will be interesting to see what the stock market will do with this news come Monday morning. Barry’s so called recovery is taking another big hit.

[kcvl]

“Too big to fail” /s

[WoofDog123]

wonder how open interest on nov and dec options is. gm gave a big sqeeze trade on same.

[OpusatFR]

This is a bad noise for small business.

Watch for a huge spike in small business bankruptcy.

[Don Corleone]

CIT received $2.3 billion in government aid

Wouldn't you just love to know where all that went?

Follow the Obama money.

[kbennkc]

I will file for bankruptcy for 5 million . Tell your congressman to let me help .

[OpusatFR]

This is a bad noise for small business.

Watch for a huge spike in small business bankruptcy.

[WellyP]

The market will go UP tomorrow as a result.

[A.Hun]

This really sucks. Credit will be even harder to get for many wholesalers and other medium sized companies. They all rely on CIT style financing to maintain inventory.

GE will probably get the best customers, the rest get to go suck eggs. Local banks sure can’t help.

[trumandogz]

More evidence that the Commie-Socialist Bank & Wall Street Bailout was a disaster.

[TigerLikesRooster]

Ping!

[Gritty]

Didn't GM also just show up at the door last week asking for another $10 billion or so? When does this insanity stop?

The taxpayers long ago ran out of money, so I suppose the only thing left to pawn is our pride - or maybe China will simply agree to take our entire country in trade? At least then somebody will get to drill our oil!

[parsifal]

http://www.nytimes.com/2009/11/01/business/economy/01citi.html?8dpc

Apparently the repeal of Glass Steagall and credit default swaps. This was preventable.

parsy, who is still learning

[lookout88]

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.

[TwelveOfTwenty]

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?

[Indy Pendance]

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?

[TurtleUp]

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.