CIT Group, Inc. New Common (CIT)

[Joe Stocks]

>>I don't think people understand the systemic risk this company failing could cause... <<

I don't see much in systemic risk, almost nil. The company files bankruptcy, the shareholders and preferreds are wiped out, and the bond holders are discounted and take over the company. The company emerges still very much intact with much less debt. Actually it may be a systemic benefit as CIT ratings may get better and they can start selling bonds to get money to loan again.

Did I not read that the holding company would file BK and the actual operations unit would not be involved - business as usual through the BK process.