So Long And Thanks For The Bail Out
Or was that a Fail Out
Nov. 1 (Bloomberg) — CIT Group Inc., a 101-year-old commercial lender, filed for bankruptcy to cut $10 billion in debt after the credit crunch dried up its funding and a U.S. bailout and debt exchange offer failed.
CIT listed $71 billion in assets and $64.9 billion in debt in a Chapter 11 filing in U.S. Bankruptcy Court in Manhattan. The U.S. Treasury Department said the government probably won’t recover much, if any, of the $2.3 billion in taxpayer money that went to CIT.
The bankruptcy “will allow CIT to continue to provide funding to our small business and middle-market customers,” said Chief Executive Officer Jeffrey Peek in a statement, “while at the same time screwing the taxpayer; it’s win-win.”
And don’t you fret none, because we’re on the hook for more
According to the petition, CIT’s largest unsecured claim holders were Bank of America Corp., as collateral agent for a $7.5 billion claim, and Bank of New York Mellon Corp., as a trustee for retail bonds with a claim of $3.2 billion. Canadian senior unsecured notes have a claim for $2.1 billion, and Citigroup Inc. also has a $2.1 billion claim as an administrative agent to bank debt due 2010.
Goodness, this “Recovery” that the Smartest Administration Evah has put together is just smokin’ along, isn’t it?
Update: As JeffS points out, I did edit the quotes for, um, clarity.
Biz, Politics | Mr. Bingley | 
November 2, 2009 6:21 am
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“The bankruptcy “will allow CIT to continue to provide funding to our small business and middle-market customers,” said Chief Executive Officer Jeffrey Peek in a statement, “while at the same time screwing the taxpayer; it’s win-win.””
Did you edit this for clarity?
;-p
Oh I did, didn’t I?
Silly me, just trying to help out!
I think you were just translating what he really meant to say Bingster.
I think you are taking the wrong approach to this. Clearly, clearly this is in the “money saved” category. Just think how much money the taxpayer would have lost if we didn’t have the Smartest Treasury Secretary Evah.:(