Replies to post #1522 on CIT Group, Inc. New Common (CIT)

[marayatano]

CIT management scammed everyone and helped the big boys out and left the bag holders.

That is why when they got their $3 billion bailout they immediately transferred $1 billion to the financing unit for operations/funding.

They also said that int he event CIT files BK, the financing unit will be operating outside of BK. That is why they sent the money there.

It seems to be their intention all along. Wipe-out shareholders and almost eliminate debt so someone like One West can come in and take over CIT with less liabilities.


IMO.

Good night.

[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.