CIT Group & US Taxpayer lose but Goldman wins (as if they wouldnt)

Well it certainly seems like Goldman Sachs are in the league of "too BIG to fail" since many reports say that they stand to make 1 Billion dollars from the impending bankruptcy of CIT Group Inc.

The Obama Administration will be left with egg on their face after spending Billions of US taxpayer TARP dollars on bailing out CIT but they will no doubt say that it was the right thing to do as it surpressed market place panic.

Goldman said: “The credit default swaps Goldman Sachs purchased to prudently manage the risk associated with the CIT financing are not a directional ‘bet’ on CIT, but were bought to protect against the possibility of a precipitous decline in the value of the collateral.”

Isn't that like saying "We didn't bet against CIT failing but we covered ourselves in case they did?"

details of the deal here:

www.financialpost.com...

the full article was in the London Financial Times

www.ft.com...

Again, Goldman has made brilliant use of credit default swaps, the derivatives that appear to have been so toxic to everyone else, including many who didn't hold them, especially the U.S. taxpayers.

This transfer of wealth from the citizens of the USA to the BILDERBERGER manageded institution that is Goldman Sachs really should come as no surprise.

PEACE,
RK