Traders Cooperative

[Joe Stocks]

CIT - Thinking this through for CIT to wipe out (NO equity) the current shareholders they would have to file BK. There still maybe enough tangible equity that CIT would not want to go through BK and have to deal with the shareholders in BK proceedings.

I think a highly dilutive debt for equity exchange is the best alternative. They don't wipe out the current common but leave them with almost nothing and avoid BK. If this is the case and the common is left whole but badly beaten, then the preferred has a pretty good chance to get a exchange offer. The gov't preferreds are on par CITpA and CITpC. I am thinking that CIT will not embarrass the gov't with wiping out their preferred shares so I think the preferreds may get a break in this outcome. I have no idea how much, but I am going to hold what I have left. I sold about half yesterday to get down to 1/2% of portfolio.