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catsigator
Heisman Gator
Picture of catsigator
Posted
quote:
CIT bankruptcy filing will cost US taxpayers another $2.3bn

CIT group, America’s leading specialist lender to small business, filed for Chapter 11 late last night in the fifth biggest bankruptcy in US history.

The collapse of the 101-year-old Utah-based lender, which trails behind only those of Lehman Brothers, Washington Mutual, Worldcom and General Motors in size, will leave US taxpayers with a $2.3 billion (£1.4 billion) bill.

It is believed the board of the lender, which has $71 billion of loans, approved the filing after its creditors agreed a pre-packaged plan designed to ensure it emerges from bankruptcy with the core of its business intact.

Only last year, US financial regulators judged CIT sufficiently well-capitalised to survive. While the lender was given access to $2.3 billion of funding under the Troubled Asset Relief Programme (Tarp), the Obama administration refused the bank’s subsequent pleas to give it further cash injections... Read more here: (link)


Gonna mean a big squeeze for a lot of retailers. Wouldn't be surprised to see a spate of businesses failing after Christmas.


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“A tenacious hold on trivial fact is the secret of my genius”
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Posts: 1521 | Location: 1200 miles from the beach, 900 from the mountains | Registered: March 24, 2008Reply With QuoteReport This Post
Neil35
Head Ball Coach
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I have seen a number stated that possibly up to 30000 small business companies or more will have to find new lending partners to keep them in business.

I hope this is the last of the big lenders falling however I do not think we have seen the last of financial failures as the housing market is quite possibly on the verge of another collapse.
 
Posts: 3449 | Registered: February 20, 2008Reply With QuoteReport This Post
ncargat1
Heisman Gator
Picture of ncargat1
Posted Hide Post
quote:
Originally posted by catsigator:
quote:
CIT bankruptcy filing will cost US taxpayers another $2.3bn

CIT group, America’s leading specialist lender to small business, filed for Chapter 11 late last night in the fifth biggest bankruptcy in US history.

The collapse of the 101-year-old Utah-based lender, which trails behind only those of Lehman Brothers, Washington Mutual, Worldcom and General Motors in size, will leave US taxpayers with a $2.3 billion (£1.4 billion) bill.

It is believed the board of the lender, which has $71 billion of loans, approved the filing after its creditors agreed a pre-packaged plan designed to ensure it emerges from bankruptcy with the core of its business intact.

Only last year, US financial regulators judged CIT sufficiently well-capitalised to survive. While the lender was given access to $2.3 billion of funding under the Troubled Asset Relief Programme (Tarp), the Obama administration refused the bank’s subsequent pleas to give it further cash injections... Read more here: (link)


Gonna mean a big squeeze for a lot of retailers. Wouldn't be surprised to see a spate of businesses failing after Christmas.


I agree, but this is what so many people wanted to see happen on a much more grand scale. Old bank failed, new banks will emerge to take its place, and if many Americans lose their business, means of supporting their family, maybe their home through no fault of theirs during the transition period...then too bad. Right?? No one should complain because this is what people wanted to see when they claimed outrage over bailling out Citigroup, B of A, Wachovia, Morgan Stanley, RBS, GE Capital, GMAC, and others who would have imploded all at once....right??
 
Posts: 1682 | Location: Too Far From Gainesville | Registered: February 17, 2008Reply With QuoteReport This Post
Gator Rick
Heisman Gator
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The must not have donated enough money to the politicians.

Taxpayers lost $2.3 billion.

Who was it that posted the US government will make a profit from the TARP fiasco? Dont think so...
 
Posts: 1578 | Registered: February 17, 2008Reply With QuoteReport This Post
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