Gov't says NO to CIT bailout (bankruptcy, complaint, borrow, companies)
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Government will not give lender CIT 2nd bailout - Yahoo! News (http://news.yahoo.com/s/ap/20090715/ap_on_bi_ge/us_cit_group_crisis_19 - broken link)
snippet:
"CIT is one of the nation's largest lenders to small and mid-size businesses. The company has warned that its failure could imperil about a million corporate borrowers, including retailers, restaurants and airlines."
Not knowing enough about this industry, is there someone to step in to take CIT's place for small and mid-size business or are these poor business owners in trouble as well ?
I sure do love how this government cherry picks who stays and who goes.
Not knowing enough about this industry, is there someone to step in to take CIT's place for small and mid-size business or are these poor business owners in trouble as well ?
I sure do love how this government cherry picks who stays and who goes.
Without question the good assets will be bought up in short order. And the bad assets...well, those are why their bankrupt so no loss there either.
This is going to make it tougher for small and medium sized business borrowers. I think it will be unfortunate at this point in time is to let these specialty lenders go bust when your supposed to be "helping main street". I think the bailouts were a bad idea from the start, but now why not save lending institutions that actually make these types of times easier than it will be.
This is going to make it tougher for small and medium sized business borrowers. I think it will be unfortunate at this point in time is to let these specialty lenders go bust when your supposed to be "helping main street". I think the bailouts were a bad idea from the start, but now why not save lending institutions that actually make these types of times easier than it will be.
That's what I was wondering. Who will take CIT's place for the solvent companies ?
Why not force another merger with some more solvent ?
Not like the government hasn't done this already ?
Whats so hard to understand about the idea that CIT's assets will be bought by other companies and business will go on as usual? Comeon! This is whats supposed to happen when a company fails, stronger hands come in and take the good pieces. The difference between CIT and say Lehman or AIG is simply that CIT's assets are far smaller, far more liquid and thus far easier to move.
Also, the Saudi Prince invested in CITI group not CIT.
i think that the main complaint here is that taxpayers lost 2.3 billion dollars with the failure of cit group. i am glad that they are not getting any more government money, but i do question why this is happening after reading this article
Did you know that CIT Group’s Corporate Governance Quotient (CGQ®) (as of 1-Jul-09) is better than 93.9% of S&P 500 companies and 99.4% of Diversified Financials companies?
Did you know that JPMorgan Chase’s Corporate Governance Quotient (CGQ®) is better than 84.7% of S&P 500 companies and 97.6% of Diversified Financials companies?
Did you know that Goldman Sachs’s Corporate Governance Quotient (CGQ®) is better than 45.4% of S&P 500 companies and 87.8% of Diversified Financials companies.
Wow; a 93.9% rating vs 84.7% and 45.4%!
But, it’s no longer about doing the right thing, is it? It’s all about not losing money and, in fact, making it, regardless of the strategies and tactics employed. i’m wondering today how much profit GS and JPM traders have made shorting CIT stock? What the government shouldn’t have done to begin with was started picking winners and losers and arranging for mergers and acquistions last year.
you are right that cit group and citigroup are 2 different companies, and that the saudi prince is heavily invested in citigroup.
Last edited by floridasandy; 07-16-2009 at 05:34 AM..
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