Cit files for bankruptcy

Zerohedge ^

[Amazedbyitall]

CIT Files Chapter 11, 76.5% Of Creditors Vote For Prepack (90% of 85% Voting)

http://www.zerohedge.com/article/cit-chapter-11

[yadent]

Is this another green shoot?

[tubebender]

I used CIT years ago to buy some equipment. I payed off the loan and I think some of the equipment is still around and in use. Must have been in1963...

[Razzz42]

From JS Mineset "...I am sure that the public is clueless on how important CIT has been to the bread and butter business that I call Middle America. People will find out soon..." "...Further, the assets of CIT in bankruptcy are the middle American loans outstanding that will be brutally attacked by the bankruptcy process. That is going to result in a flood of middle American businesses declaring bankruptcy."

[D-fendr]

This is a very important lender.

I have to wait for someone more knowlegeable that I to analyze it. I’m hoping this part is good news anyway:

“Importantly, none of CIT’s operating subsidiaries, including CIT Bank, a Utah state bank, will be included in the filings. As a result, all operating entities are expected to continue normal operations during the pendency of the cases.”

[tubebender]

There is larger thread running on this.It was over 100 posts...

[tubebender]

here ya go... http://www.freerepublic.com/focus/f-news/2376077/posts

[D-fendr]

thank you very much, tubebender.

[Jimmy Valentine]

CIT is finance company. They provide loans at above market rates to consumers.

If theymismatched the maturitiesoftheir assets (loans) and liabilities (borrowed funds) and/or loaded up on weak credit that would do it.

The answer is to wind down their portfolio over time and wash them out.