Cit Grp. Pfd A (fka CIT-A)

[research177]

White house press release says they will be monitoring "their" stake in the CIT Group.


NOVEMBER 3, 2009, 1:42 P.M. ET White House Notes 'Stake' In CIT Bankruptcy Proceeding Article Email Printer
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Text
By Maya Jackson Randall
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The White House clearly has an interest in how CIT Group Inc.'s bankruptcy plays out given that taxpayers have provided the lender billions of dollars in financial aid, the White House said Tuesday.

"There's obviously a process that will now be ongoing in terms of their planned bankruptcy, but obviously, we have a stake in how that comes out as taxpayers have invested that money," said White House spokesman Robert Gibbs in a press briefing Tuesday.

CIT, which filed for bankruptcy protection on Sunday, has received $2.3 billion in funds from the Troubled Asset Relief Program, or TARP.

In response to a question, Gibbs said the White House is "heartened" by the fact that CIT, which lends to small- and medium-sized firms, will continue to lend.

He added that the Obama administration plans to continue to take steps to protect the economy.

"We will continue to seek ways to stabilize the financial system," he said.

In response to another question, Gibbs said the best way for the Obama administration to deal with the budget deficit is to get the economy moving again. "That's what the economic team is focused on and that will have the most impact in the short term," he said.

-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255; [e-mail]




http://online.wsj.com/article/BT-CO-20091103-714082.html




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