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 ...
The list, ping
blew through 2.3 billion.. and STILL went out of business!
Thanks Government!
/sarc
Sigh.
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.
“Too big to fail” /s
wonder how open interest on nov and dec options is. gm gave a big sqeeze trade on same.
This is a bad noise for small business.
Watch for a huge spike in small business bankruptcy.
Wouldn't you just love to know where all that went?
Follow the Obama money.
Any impact to small business will be nominal....CIT hasn’t been lending for a while....
This is a bad noise for small business.
Watch for a huge spike in small business bankruptcy.
The market will go UP tomorrow as a result.
CIT going bankrupt has been a known quantity for a while, or at least highly probable. the details are what has been being worked out.
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.
More evidence that the Commie-Socialist Bank & Wall Street Bailout was a disaster.
Ping!
I can only hope that the top executives at that company suffer great personal financial loss.
I’m sure they’re parachutes are packed, but I hope they feel alot of pain, after raising CC rates to 27 percent.
Immoral userers.
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!
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
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