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Commercial lending giant CIT files bankruptcy

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posted on Nov, 1 2009 @ 07:11 PM
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Commercial lending giant CIT files bankruptcy


www.msnbc.msn.com

Government to likely lose $2.3 billion it spent to prop company up last year.

Lender CIT Group has filed for bankruptcy protection, in an effort to restructure its debt while trying to keep loans flowing to the thousands of mid-sized and small businesses.

CIT made the filing in New York bankruptcy court Sunday, after a debt-exchange offer to bondholders failed.
(visit the link for the full news article)




posted on Nov, 1 2009 @ 07:11 PM
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This is disastrous. Not only the fact that Congress made the decision to give them 2.3 BILLION last year that will never be repaid...


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)



posted on Nov, 1 2009 @ 07:23 PM
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I just want to make it clear, it is cit bank NOT citi bank.

That mistake has been freaking people out.

This is not good, either.



posted on Nov, 1 2009 @ 07:32 PM
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If you don't watch out you may get confused. I found myself with a
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).

I don't retract my initial
reaction, though. More bad news from the financial sector.


NEXUS



posted on Nov, 1 2009 @ 07:35 PM
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www.abovetopsecret.com...

Already being discussed there and hasn't dropped off the front page yet that I have seen. Might jump over there and join in the discussion instead.



posted on Nov, 1 2009 @ 07:38 PM
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Probably the worse part of this is not the fact that we won't be paid back for the bailout but that small business around the country will definitely suffer. This is horrible news for the economy for that reason alone.

Just think of all the businesses who depend on them to provide credit for purchases necessary for the operation of their businesses. Not too many businesses operate on a cash basis these days. The suppliers as well. The big banks will never fill this gap as is evidenced by the credit retraction we've seen this year. They will just refuse and many, many businesses will go out of business because of this. More unemployment. This truly is horrible news.



posted on Nov, 1 2009 @ 07:40 PM
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Originally posted by whoshotJR
www.abovetopsecret.com...

Already being discussed there and hasn't dropped off the front page yet that I have seen. Might jump over there and join in the discussion instead.


That's strange. It's not on my front page anywhere. I really did do a search, the search function here stinks.



posted on Nov, 1 2009 @ 07:42 PM
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reply to post by Iamonlyhuman
 


Yes, I didn't even delve into the effects of small businesses with my reply. It's a chain reaction of economic destruction, how can the sheeple keep following the MSM's "sunshine puking optimism", as my friend would put it, when this kind of news is the norm for our large banks?

More unemployment, more foreclosures in both commercial and home real estate, more toxic assets, more destroyed credit...it's a downward spiral with no end except the complete and utter failure of the capitalist system. It's gonna be a bumpy ride.

NEXUS



posted on Nov, 1 2009 @ 08:26 PM
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Originally posted by whoshotJR
www.abovetopsecret.com...

Already being discussed there and hasn't dropped off the front page yet that I have seen. Might jump over there and join in the discussion instead.


ATS allows a thread on the same topic to be posted in the Breaking News forum and the Conspiracy Theory forums.

Scooby Doo...



posted on Nov, 1 2009 @ 09:13 PM
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well it my be rippling over to regular banks i was in line at walmart getting groceries when the csm started going from line to line telling people that all bank credit and debit cards were not working because of something happening at all banks. i went right to my bank in same walmart store emptied my account thru atm and bank clerk said how did i do that i said i just put my card in and money came out. he came right around from behind counter and disabled the atm. so maybe this is effecting economy already.



posted on Nov, 2 2009 @ 06:15 AM
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Originally posted by proteus33
well it my be rippling over to regular banks i was in line at walmart getting groceries when the csm started going from line to line telling people that all bank credit and debit cards were not working because of something happening at all banks. i went right to my bank in same walmart store emptied my account thru atm and bank clerk said how did i do that i said i just put my card in and money came out. he came right around from behind counter and disabled the atm. so maybe this is effecting economy already.


You emptied your account. You a big player or what?
What sort of daily limit do you have on your ATM card withdrawals?



posted on Nov, 2 2009 @ 06:17 AM
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Existing thread here:
www.abovetopsecret.com...

Please add further comments to the ongoing discussion.
Thank you







-thread closed-



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