Posted on 11/01/2009 2:33:39 PM PST by Steelfish
Commercial Lending Giant CIT Files Bankruptcy
Government to likely lose $2.3 billion it spent to prop company up last year
NEW YORK - Lender CIT Group has filed for bankruptcy protection, in an effort to restructure its debt while trying to keep loans flowing to the thousands of mid-sized and small businesses.
CIT made the filing in New York bankruptcy court Sunday, after a debt-exchange offer to bondholders failed. CIT said in a statement that its bondholders have overwhelmingly approved a prepackaged reorganization plan which will reduce total debt by $10 billion while allowing the company to continue to do business.
"The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy," said Jeffrey M. Peek, chairman and CEO. Peek has said he plans to step down at the end of the year.
(Excerpt) Read more at msnbc.msn.com ...
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Yeah, but think of all the jobs Obama saved.
Define failure.
CIT stalled long enough to pay off Obama investors. Then CIT declares bankruptcy at the taxpayer’s expense.
So, brilliantly handled by the corrupt Chicago politicians!
CIT?
Are they related to CITIbank or CITImortgage?
So how does this affect the mortgages held by CIT? We are this close (down to a couple of days) to closing on a refi. Does anybody have any idea what this bankruptcy means to individuals such as us?
Actually, this wasn’t a failure at all - it was a smashing success; IMO it went down exactly as planned.
The crooks involved - particularly including the government itself - knew damn well that CIT was going to go boom.
So, they took advantage of the political climate and our sheepish, ignorant population to ram through a taxpayer-funded bailout to “save” CIT under the threat of irrevocable damage that would be done to CIT’s commercial customers, and thus the broader economy, should it fail.
They walked right in through our front door in broad daylight and robbed us of $2.3 BILLION, sticking us with now-worthless stock (which is going to be wiped out by this bankruptcy).
America, how much more of this brazen robbery at the hands of our own government are we going to tolerate?
Nevertheless, you would be well-advised to have absolutely nothing to do with Citibank either. Stay away from Citi. Far, far away.
Citibank is also about to go BOOM!
Mortgage holders should not be effected negatively... in the long term...
Sorry to say though that this is just the edge of what is likely to come... Stock market down 250 Friday with futures showing another 240 down (Monday)... Things are not looking up.
The economy is being held up by a shoestring with excess money being supplied into the markets. This will not last. It is a temporary fix and will only cause a worse problem in the future - and the future is coming on fast.
Employment is getting worse and will stay flat for the next two years or so - or until changes occur in Washington. The economy which is 70% consumers can not hold up with this kind of unemployment, much less with the proposed taxes coming down from the Democrats.
Batten down the hatches folks - things are going to get a lot worse before they get better. If the antics of this government does not change drastically, it will get even worse that you imagine...
Yeah, but think of all the jobs Obama saved.
Look at all the green shoots sprouting from Citi Group’s collective asses.
Bloomberg:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aW_ngoMWF.u0&pos=1
CIT is NOT Citibank-—it’s always been a traditional lender to small businesses and capital intensive enterprises where a lot of money is needed up front for the businesses to get off the ground.
Failure for America, for freedom, liberty, prosperity.
Must have come from the obamma stash, since it was government money. Didn't have anything todo with the tax payer. Now where is that damn fool that , just this morning, told me the tax payers would get all of the tarp money back.
Thanks for posting; thanks for the ping. Very, very interesting.
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