5th Largest Bankrtuptcy in U.S. History-CIT Group

[WA_Vol]

Apparently, they weren't too big to fail, not a good week on Wall Street:

CIT files for bankruptcy as part of reorganization plan - Nov. 1, 2009

NEW YORK (CNNMoney.com) -- CIT Group Inc., one of the nation's leading funders of small and medium-sized businesses, filed for the fifth largest bankruptcy by assets in U.S. history Sunday as part of a reorganization plan that has the support of an overwhelming majority of debtholders.

Common shareholders, however, will be out of luck. CIT said all existing common and preferred stock will be cancelled upon emergence from bankruptcy protection. That would likely include preferred stock from the $2.3 billion in funding from the U.S. government's Troubled Asset Relief Program (TARP) the company received in its efforts to stay afloat.
CIT sought a second federal bailout in July but was rejected. It was then able to get a $3 billion loan from bondholders in order to stave off bankruptcy -- at least for a little while.

CIT shares were trading at 64 cents after hours Friday, having closing at 72 cents during regular trading hours. The stock traded above $60 as recently as 2007.

 

[BigPapaVol]

This isn't a "fail." enormous restructure so they can get back into things that make them profitable and compartmentalize the crap that keeps them from moving forward. Was inevitable in their business. AIG will have to do something similar.
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[lumberjack4]

Good thing I dumped my CIT stock on Tues.
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[lawgator1]

Remarkable: $60 a share to zero in 2 years.

 

[BigPapaVol]

Remarkable: $60 a share to zero in 2 years.

They weren't alone in the financial stock world. One unit ate all the company's book value and destroyed the liquidity I all the other units. Strange insolvency when much of the business can generate cash.
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[droski]

They weren't alone in the financial stock world. One unit ate all the company's book value and destroyed the liquidity I all the other units. Strange insolvency when much of the business can generate cash.
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strange. i thought that all those on wall street were getting rich on the back of the taxpayers.

 

[volinbham]

those bastages

 

[lawgator1]

strange. i thought that all those on wall street were getting rich on the back of the taxpayers.

I wonder how much:

a) was paid out in bonuses to CIT management and BOD 2007-2009;

b) was made by brokerage houses trading the stock 2007-2009.

 

[droski]

I wonder how much:

a) was paid out in bonuses to CIT management and BOD 2007-2009;

b) was made by brokerage houses trading the stock 2007-2009.

a) who gives a crap?

b) who gives a crap?

 

[rjd970]

a) who gives a crap?

b) who gives a crap?

Wouldn't the stakeholders? (read, "taxpayer")

 

[droski]

the taxpayers are getting all their money. it's the shareholders who are getting screwed.