CIT's move will wipe out current holders of its common and preferred stock, likely meaning the U.S. government will lose the $2.3 billion it sunk into CIT last year to prop up the ailing company.
But, small business is severely hurt as well.
It is unclear what the filing will mean for the nation's small businesses, many of which look to CIT for loans to cover expenses like buying materials at a time when other credit is hard to come by.
Analysts have warned that already ailing sectors, like retailers, could be hit especially hard, since CIT serves as the short-term financier for about 2,000 vendors that supply merchandise to more than 300,000 stores.
Think that the big banks are going to lend to small businesses?? Think again.
This is terrible.
www.msnbc.msn.com
(visit the link for the full news article)
on my face, thinking it was Citi Bank as well, haha. Nonetheless, any large
bank that received government bailout going under is terrible, just more losses from the Treasury that will never be paid back (not like they would
have been in the first place). 
