CIT’s Bankruptcy May Help Bondholders and Erase Taxpayer Stake



CIT’s Bankruptcy May Help Bondholders and Erase Taxpayer Stake

Nov. 2 (Bloomberg) -- CIT Group Inc.’s decision to seek court protection probably will keep money flowing to bondholders and 1 million customers of the 101-year-old commercial lender. Shareholders and taxpayers won’t be as fortunate.

CIT’s Chapter 11 bankruptcy may give bondholders new notes at 70 cents on the dollar plus new common stock, and Chief Executive Officer Jeffrey Peek said clients will be able to get funds. Common stock owners could be mostly wiped out, and the U.S. Treasury Department said it won’t recoup much, if any, of the $2.33 billion of taxpayer money that went into CIT, the largest firm to go bankrupt after getting a federal bailout.

“It doesn’t look too good for the government preferred or any preferred holders,” Brian Charles, a debt analyst at New York-based brokerage RW Pressprich & Co., said yesterday. “It’s unlikely common shareholders realize any value.”


CIT’s Bankruptcy May Help Bondholders and Erase Taxpayer Stake






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Who gave CIT's first bailout money?

quote:

Who gave CIT's first bailout money?

Bush, Obama and the Democratic controlled Congress.

The plan was hatched by the socialist donkies in congress and the socialist Treasury Secretary President Bush foolishly appointed!!!!!!!!!!!!!!!!!!

quote:

Originally posted by Trans Lady:

quote:

Who gave CIT's first bailout money?

Bush, Obama and the Democratic controlled Congress.

Wrong........

Bush is the answer and he took care of the "good ole' boys".....

Remember....He is the "Decider".

Well he took care of the UAW, now your being hosed because your man is throwing money all around the world. Killer countries in Afica are getting billions.

quote:

the Democratic controlled Congress

Liberials forget who controlled congress at this time.

quote:

Liberials forget who controlled congress at this time.

That's because they stand a world apart from the rest of America.

They also believe they possess a level of knowledge and understanding when it comes to politics and current events, one gained from a rejection of the mainstream media and an embrace of Liberal media and pundits such as Keith Olberman and Rachel Maddow, which sets them apart even more.

quote:

Originally posted by 78 Cutla$$:
Well he took care of the UAW, now your being hosed because your man is throwing money all around the world. Killer countries in Afica are getting billions.

Wrong again john boy on both counts.

You better go back and check on yur boy dumbya with Africa.
Show me where Obama sent billions to Africa???