Refusing Bailout For CIT, Gov't Draws Line In Sand

Refusing Bailout For CIT, Gov't Draws Line In Sand

news.moneycentral.msn.com

WASHINGTON (AP) - CIT Group Inc.'s inability to get emergency government funding raises expectations that the commercial lender will file for bankruptcy.

But it is unclear how such a filing by a company that lends to millions of small and mid-size businesses would affect shaky financial markets hobbled by an economy in recession and bleeding millions of jobs a month. Small businesses are seen as keys to economic recovery.

CIT said late Wednesday that negotiations with regulators about a po...

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CIT Group preparing for possible bankruptcy

This is an absolutely infuriating move by the government. They lend to big, unstable buisnesses like GM and AGI who do nothing but hand out big salleries to their execs and fuel stupid overseas projects, wile they let a major lender to small and mid-sized buisnesses crash into the ground without aid!!!

What would be more helpful in this econemy, a new model of car or ALLOWING THE PEOPLE TO HAVE BACK SOME OF THE MONEY THAT WAS STOLEN FROM THEM. I think this is absolutely ridiculous, and a coordinated move to shake the job market and destroy consumer confidence.

This will be completely overlooked in the fever of this weeks markets, and nobody will take notice until it all comes crashing down again. and then what? well, dont look to one of americas biggest lenders for a loan because they will be bankrupt.

They bring us all up, they take out the low-level supports wile were living high, and then when were back on the bottom there's nothing to hold onto and bring us back up. I beleive this will be the last major rally.

news.moneycentral.msn.com
(visit the link for the full news article)

I saw this as well.

To me, if they are trying to actually fix things, they enjoy living in the moment and do not look to the future benefits of anything.

If they are trying to screw things up....

CIT is this year's Bear Stearns or Lehman Bros.. It must be the sacrificial lamb to buy a bigger player more time for it's executives to divest and hedge their losses.

edit: listed wrong crooks...

[edit on 16/7/2009 by kosmicjack]

This government stepped on a slippery slope with the first TARP that was passed. There have been Billions upon Billions of dollars spent,to no apparent avail. All these bail outs and forced bank ruptcies are a sham. Information is leaking out near daily. The under the table dealings between the treasury dept. and Goldman/Sachs are going to come to light.

When the people realize what our elected officals have done to them...let's just say there may not be enough laws to protect them!!!

update:

Markets Brief
Street Overcomes CIT Woes
Steve Schaefer, 07.16.09, 02:30 PM EDT

Lender's potential bankruptcy limits gains, but stocks rise after JPMorgan posts solid Q2 earnings.

Wall Street seesawed Thursday as investors pondered ups and downs in the financial sector. JPMorgan Chase booked better than expected second-quarter earnings, but any enthusiasm for its report was tempered by concerns that CIT Group may slide into bankruptcy.

The lender was on the brink after government regulators rebuffed its efforts to receive FDIC backing or another bailout from the Treasury. Reports said CIT Group ( CIT - news - people ) was in talks with private equity groups about an 11th-hour injection of $2 billion to $3 billion, but the firm may be forced to file Chapter 11 as soon as Friday.

Looks like CIT will be allowed to fail. Well, nobody will care as long as the market looks good today. Tomorrow when its failing and small businesses need money to maintain themselves the public will sing a different tune.

I figured this would be overlooked.