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 ...
Cucumbers and condoms..mmm,mmm,mmm.
The only question is, when did Jim Cramer recommend it as a can’t miss BUY BUY BUY!
Ah here we go, it was one month ago.
http://www.zerohedge.com/article/jim-cramers-recommendation-cit-yesterday-primed-upside-i-would-buy
http://www.muckety.com/Jeffrey-M-Peek/2070.muckety Lots of conections there. I don’t have time to study it right now.
Not a big political fund raiser: http://fundrace.huffingtonpost.com/neighbors.php?type=name&lname=Peek&fname=Jeff
Jeffrey M. Peek
Jeffrey M. Peek. Born: c. 1947. Gender: Male Race or Ethnicity: White Occupation: Business Party Affiliation: Republican. Nationality: United States ...
www.nndb.com/people/400/000162911/ - Cached - Similar
No, CIT is not Citibank.
What I want to know are who are the inside players at CIT and their ties to the Obama regime.
If they had good inside ties to the administration, they probably would have gotten another shot of TARP money. CIT’s $2.3 billion was issued on Bush’s watch.
GMAC, on the other hand, must have very good ties to the administration. They’ve received $12.5 billion in TARP and are on track to get another slug. Nice to see Geithner and Obama being consistent /sarc.======================================================
Good points
The existing common holders were pretty much wiped out anyway. Debt holders are going to be swapping debt for equity- they get all the upside, we (taxpayers) took all the hit. And it looks like unlike the taxpayers, Goldman is going to be paid in full.
Stock Pimp
Stock Pimp
Whatcha gonna dooooooooooooooooooo
Yeah ;-)
I didn’t write down his name, but the CEO of GE was on the White House Visitor’s list....about 7 times.
This is NOT Citigroup. This is CIT Group, a commercial lender.
I saw that. Immelt is so in Obama’s pocket, I’m surprised he can breathe.
You can be assured that GE will make money off this.
GE also has a LOT to gain by Death Care “reform”.
Bastards!!
You are right, but you should have added in your post that
CIT SPECIALIZES IN SMALL BUSINESS LOANS.
I know you knew that, but others may not have.
If you think 27% interest is acceptable when these F’rs are getting money to loan at 0%....you’re insane.
The consumer will never recover with crap like that going on. They got bailed out by taxpayers and now they are raping and gouging their customers who are the same taxpayers they took initially.
You are probably right. At 6:00 pm ET, DOW futures were down $65. At 7:00 pm ET, DOW futures are up $15. This shows the bad news has finally been seen by the pundits on Wall Street and they are reacting according to the grand plan from the great Zero.
Agreed, and I am almost always a business supporter.
I sure Immelt thinks he’s doing the smart thing, but chances are, his collusion with Obama is going to cost GE dearly.
Finally...a voice of reason.
Who cares. It is the perfect time to create a panic in Citibank shares too. :)
Who cares? It is the perfect time to create a panic in Citibank shares too. :)
“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”
Well, I guess your ignorance can excused because you probably don’t possess a credit card.
FYI, a credit card holder doesn’t hold a card with a 27 percent rate. They have a normal rate and get a letter that says, blah blah blah, “due to economic conditions we are tripling or quadrupling your rate to 27%. Then a person who has excellent credit and has never been late on a payment, simply pays off the balance or transfers the balance to a competitive credit card. This is my case and the vast majority of people who own credit cards. (btw, this is a commercial lender who went bankrupt, I mistakenly thought this was C Citibank who will be going bankrupt on Monday.) Wrong bankruptcy.
However, people who have poor credit, can’t transfer their balance and are stuck with ridiculous rates. They are screwed. Normally, I wouldn’t have much sympathy for their irresponsible spending. But, that is no excuse for company’s to charge exorbitant interest rates. Especially when these companies were bailed out by the same middle class taxes that baild them out last year.
Your second comment about CC holders who expect taxpayers and “the rich” to bail them out, simply makes no sense and isn’t germane to reality. It’s not the CC holders who are getting bailed out, it is the piss poor managed banks and financial institutions who are getting bailed out.
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