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CIT Files for Bankruptcy (received 2.3 billion in bailout money)
NYT ^

Posted on 11/01/2009 1:59:46 PM PST by Chet 99

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To: nevergore
In fact, the market will actually go up on this filing. The filing stops the uncertainty over the future of CIT--and the market usually nosedives whenever there is volatile uncertainty.
81 posted on 11/01/2009 5:09:24 PM PST by RayChuang88 (FairTax: America's economic cure)
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To: MeneMeneTekelUpharsin

“Who cares. It is the perfect time to create a panic in Citibank shares too.”

No reason to create a panic, they have filed bankruptcy papers over the last few days and they are reportedly making that bankruptcy official Monday.

So, C is not an investment worthy stock, it is a pure speculation play for traders going in and getting out.


82 posted on 11/01/2009 5:10:48 PM PST by rbmillerjr (It's us against them...the Establishment RINOs vs rank and file...Sarah Palin or bust)
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To: B Knotts

CIT is a commercial lender that specialized in commercial real estate. They have been under the radar for a long time because they are not a glamour bank like CITI or Chase. BUT they carry a LOT of of mortgages taken out by small businesses. Expect a big drop in the market over this. This is much bigger than the home mortgage ponzi scheme. Hang on guys, it’s fixin to get worse.
Thanks dimrats and your ***** media for bringing us this.


83 posted on 11/01/2009 5:13:18 PM PST by Texas resident ( Doing my part to piss off the heathen left.)
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To: Chet 99

BOHICA.


84 posted on 11/01/2009 5:14:58 PM PST by glock rocks (Wait, what?)
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To: stephenjohnbanker

‘Was’ being the key word there :o(


85 posted on 11/01/2009 5:15:44 PM PST by editor-surveyor (The beginning of the O'Bomb-a administration looks a lot like the end of the Nixon administration)
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To: TexasFreeper2009

Money does not go down the toilet!!!


86 posted on 11/01/2009 5:20:58 PM PST by myknowledge (F-22 Raptor: World's Largest Distributor of Sukhoi parts!)
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To: PAR35
Debt holders are going to be swapping debt for equity- they get all the upside, we (taxpayers) took all the hit.

Since the geniuses that came up with TARP bought preferred shares under the Capital Purchase Plan, the debt holders should be ahead of us.

See tagline for my opinion of the geniuses that came up with TARP.
87 posted on 11/01/2009 5:25:24 PM PST by javachip (TARP - proof there is no situation so bad that government can't make it worse.)
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To: rbmillerjr
"If you think 27% interest is acceptable when these F’rs are getting money to loan at 0%....you’re insane."

You should tone down unsupported characterizations. They only invite a question as to whether the one speaking lacks sanity.

Suppose you have capital of $100 and need not borrow at all (that's equivalent to your 0% point. You have a customer that defaults with probability 1/4 (three to one odds that you'll get your money back). Instead of lending, you can buy a safe bond that yields 5%. At what rate of interest should you make a loan to break even?

Answer: 40%. If the borrower does not default, you get back $40. If he does default, you lose $100. You expect therefore

$40 (3) - 100 (1)

-------------------- = 5, the amount you'd get from the bond.

4

(the numbers in parantheses are odd, 3:1). If the government were to limit loan in this example to 30%, say, risky borrowers would never get any loans at all: you'd be buying bonds instead of lending to them.

The moral of the story is that the high interest is fully explained by the riskiness of the customers.

The profit derived from 30% loans to risky customers is low --- similar to what you'd get elsewhere.

As I said many times before, people like you have no clue of the facts and yet rave against the banks --- just what the NYTimes commies want you to do.

How hard is it to make a simple computation above?

Now, who is insane here?

"The consumer will never recover with crap like that going on."

Perhaps you should first understand that which you call c--p. Ask questions if you don't.

88 posted on 11/01/2009 5:35:11 PM PST by TopQuark
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To: Chet 99

Is this the same as “C” on the NY Stock Exchange, or one of their “sister” companies


89 posted on 11/01/2009 5:58:24 PM PST by SideoutFred (B.O. Stinks...it really does)
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To: SideoutFred
Is this the same as “C” on the NY Stock Exchange, or one of their “sister” companies

Citigroup (C) and CIT Group (CIT) are COMPLETELY unrelated. However, they are both insolvent.

90 posted on 11/01/2009 6:03:25 PM PST by politicket (1 1/2 million attended Obama's coronation - only 14 missed work!)
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To: TexasFreeper2009

I want a list of the salaries and bonus payouts. Time for clawback!


91 posted on 11/01/2009 6:11:45 PM PST by pointsal
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To: politicket

Thanks. I bought C at $1.40 which is why I ask. I didn’t think the gov’t would let them fail. I’ve been wondering if I should cash out or play it out to see if 10 years from now it’s back in the $50 or $60 range


92 posted on 11/01/2009 6:12:14 PM PST by SideoutFred (B.O. Stinks...it really does)
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To: Chet 99
Billions of dollars down a rat hole? How many years will it take for all of us to pay off that debt? Money CIT blew through in months?
93 posted on 11/01/2009 7:03:18 PM PST by GOPJ (When I was a child Halloween wasn't a celebration of evil - but a celebration of standing up to evil)
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To: WoofDog123

Really - who goes bankrupt next ?


94 posted on 11/01/2009 7:04:40 PM PST by GOPJ (When I was a child Halloween wasn't a celebration of evil - but a celebration of standing up to evil)
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To: Chet 99
Stock Futures as of 9:42PM

DJIA INDEX 9,702.00 +38.00

S&P 500 1,037.30 +4.30

NASDAQ 100 1,668.25 +2.75

95 posted on 11/01/2009 7:12:02 PM PST by ExSES (the "bottom-line")
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To: WellyP

At least CIT can escape the clutches of Obama now.


96 posted on 11/01/2009 7:51:45 PM PST by Mike Darancette (Obama: Grasping at Straw Men _ Not a Public Option It's a government mandate.)
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To: rbmillerjr
MI>I’m sure they’re parachutes are packed, but I hope they feel alot of pain, after raising CC rates to 27 percent.

In BK contacts can be voided.

97 posted on 11/01/2009 7:53:41 PM PST by Mike Darancette (Obama: Grasping at Straw Men _ Not a Public Option It's a government mandate.)
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To: TopQuark

“The moral of the story is that the high interest is fully explained by the riskiness of the customers.”

LOL, you have no idea what you are talking about.

C has been raising rates on people, “due to current economic conditions”. Not risky credit customers.

Due a youtube search and a google search to see what’s going on.

The calculations you present are only relevant for poorly managed financial companies. They assume that the CC companies can’t pick deselect risky credit card users. They can do this. But they haven’t, so now they are punishing good customers by raising rates to ridiculous rates...not 7,9, 11,,,,not even 14 but 27%.

Again poorly managed companies. The same one’s that were bailed out. They can raise it to 45% for all I care, my modest balance now gets 3.9 on a preferred card.

C is going bankrupt and poor business is the reason. Attempting to make your quality customer pay 27% because they lend to any shmo is not my problem. But it’s still poor business.

Happy Bankruptcy to them at C.


98 posted on 11/01/2009 8:36:38 PM PST by rbmillerjr (It's us against them...the Establishment RINOs vs rank and file...Sarah Palin or bust)
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To: OpusatFR; All
This is a bad noise for small business.

Watch for a huge spike in small business bankruptcy.

Yeah - CIT is the largest issuer of short-term commercial paper, which small businesses need to tide them over between the time they invoice and the time they get paid ...

99 posted on 11/01/2009 9:13:15 PM PST by Lmo56
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To: wafflehouse; Leisler; PAR35; TigerLikesRooster; AndyJackson; Thane_Banquo; nicksaunt; ...
*Bush-Paulson-Obama-McCain legacy ping!*
100 posted on 11/01/2009 9:25:13 PM PST by rabscuttle385 (http://restoretheconstitution.ning.com/)
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