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11-01-2009, 07:06 PM
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#1 (permalink)
| | Senior Member
Join Date: Jul 2005 
Posts: 12,653
| 5th Largest Bankrtuptcy in U.S. History-CIT Group
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 Quote:
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.
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"The measure of who we are is what we do with what we have." Vince Lombardi | 
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11-01-2009, 07:12 PM
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#3 (permalink)
| | Eric Berry's Pain Train
Join Date: Oct 2008 Location: Huntsville, Alabama
Posts: 467
| Good thing I dumped my CIT stock on Tues.
Posted via VolNation Mobile | |
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11-01-2009, 07:20 PM
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#4 (permalink)
| | Senior Member
Join Date: Aug 2005 Location: Winter Springs, Fla.
Posts: 16,715
| Remarkable: $60 a share to zero in 2 years.
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What if the hokey pokey really IS what it's all about? | |
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11-01-2009, 07:27 PM
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#5 (permalink)
| | Wave yo hands in the aiya
Join Date: Oct 2005
Posts: 36,738
| Quote:
Originally Posted by lawgator1  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. Posted via VolNation Mobile | |
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11-02-2009, 10:23 AM
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#6 (permalink)
| | Irrelevant since 09/2007
Join Date: Jan 2007 Location: Los Angeles, CA
Posts: 10,614
| Quote:
Originally Posted by BigPapaVol 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.
Posted via VolNation Mobile | strange. i thought that all those on wall street were getting rich on the back of the taxpayers. | |
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11-02-2009, 11:25 AM
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#7 (permalink)
| | doo doo doo
Join Date: Oct 2004 Location: looking out my backdoor
Posts: 15,440
| those bastages
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Despite its widespread use the word "gullible" isn't in the dictionary! | 
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11-02-2009, 11:36 AM
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#8 (permalink)
| | Senior Member
Join Date: Aug 2005 Location: Winter Springs, Fla.
Posts: 16,715
| Quote:
Originally Posted by droski 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.
__________________
What if the hokey pokey really IS what it's all about? | |
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11-02-2009, 11:40 AM
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#9 (permalink)
| | Irrelevant since 09/2007
Join Date: Jan 2007 Location: Los Angeles, CA
Posts: 10,614
| Quote:
Originally Posted by lawgator1 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? | |
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11-02-2009, 11:46 AM
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#10 (permalink)
| | Senior Member
Join Date: Sep 2007 Location: Huntsville, AL
Posts: 4,028
| Quote:
Originally Posted by droski a) who gives a crap?
b) who gives a crap? | Wouldn't the stakeholders? (read, "taxpayer") | |
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11-02-2009, 11:51 AM
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#11 (permalink)
| | Irrelevant since 09/2007
Join Date: Jan 2007 Location: Los Angeles, CA
Posts: 10,614
| the taxpayers are getting all their money. it's the shareholders who are getting screwed. | |
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