Aimee's Blog

• Karzai effectively handed 2nd term (ChinaDaily) http://bit.ly/3YeuOK #
• How strong is any economic recovery in your area? (CNNMoney, poll) http://bit.ly/2UAKy5 65% say “No recovery here.” #
• CIT, 5th largest Bankruptcy, not awesome (my blog) http://bit.ly/y8WLR #
• Ghost among the machines, old Packard plant (CNNMoney) http://bit.ly/3Wyd8V Special section all about Detroit’s decay. #
• Self-Interest May Not Benefit Society As A Whole (NPR) http://bit.ly/1ZV7fR It’s about economics. John Cassidy #
• RT @I676: For you, @AimeesBlog. RT @senatus: Sen. Cantwell (D) ‘not sure’ why Geithner still has a job http://bit.ly/26d8in via @MPOTheHill #
• Here’s some bright Autumn color from Mr @I676 http://yfrog.com/e9wxvj Nice shot #
• RT @DocPowers: Great article about Elizabeth Warren uhem @planetmoney might want to check it out http://is.gd/4Lkac #
• RT @prof_hutchens: Good radio show on Asia closing gap w/ US in higher ed thru strategic planning & govt investment: http://bit.ly/1KnkZj #
• Planet Money Recession Club group (NPR) http://bit.ly/dAhYS Remember this? #
• Secret Bond Deal Led IRS to Middleman Financing in the Dark (Bloomberg) http://bit.ly/mao0o It’s long, worth reading, taxpayers ripped off #

CIT Filing May Help Bondholders, Erase Taxpayer Stake (Bloomberg)

CIT’s Chapter 11 bankruptcy may give bondholders new notes at 70 cents on the dollar plus new common stock, and Chief Executive Officer Jeffrey Peek said clients will be able to get funds. Common stock owners could be mostly wiped out, and the U.S. Treasury Department said it won’t recoup much, if any, of the $2.33 billion of taxpayer money that went into CIT, the largest firm to go bankrupt after getting a federal bailout. [Read more]

Hey CIT, the U.S. taxpayers say, “Give us our money back!” A Ben Folds Five song comes to mind.

From CNNMoney:

CIT’s position in the business world is crucial. It says it is the leading provider of factoring, a key element in the day-to-day financing of the retail industry. Its key role in shipping goods is illustrated by its statement that it is the nation’s third-largest lessor of rail cars and the world’s third-largest lessor of aircraft. [Read more]

Not to be confused with Citigroup or Citibank:

Wikipedia says,

CIT Group, Inc. is a large American commercial and consumer finance company, founded in 1908. The company filed for Chapter 11 bankruptcy in 2009. The company is included in the Fortune 500 and is a leading participant in vendor financing, factoring, equipment and transportation financing, Small Business Administration loans, and asset-based lending. The company does business with more than 80% of the Fortune 1000, and lends to a million small and medium businesses.^[2] It was a part of the S&P 500 Index, was replaced by Red Hatat the close of trading July 24, 2009.^[3]

The company has its headquarters in New York City, and employs more than 7,300 people in locations throughout North America, Europe, Latin America, and Asia Pacific. The company’s name is an abbreviation of an early corporate name, Commercial Investment Trust.

In 2008, CIT Group became a bank holding company in order to qualify for, and ultimately receive $2.3 billion in Troubled Asset Relief Program (TARP) funds. However, it declaredChapter 11 bankruptcy on 1 November 2009. [Read more]

Something to chew on:

From September, on Bloomberg, Fed Growth Effort May Be Undermined by ‘Tight’ Credit