What does a bankruptcy mean for CIT and US Taxpayer?
By Daniel at 13 July, 2009, 10:24 pm
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They received 2 billion dollars in December and six months later they are bankrupt!
“American Express and CIT — which had to go through a debt-for-equity swap in order to raise $1.5 billion to become a bank holding company — said that in exchange for the TARP funds they would sell preferred stock and warrants to the U.S. Treasury.”
What does a bankruptcy mean for CIT and US Taxpayer? First, does it mean that the US Government takes over another company? Second, does it mean that the 2 billion dollars floated for CIT are basically SH (remove the C from IT)? Third, the good news is that Barney Frank can’t spend the “profits” on pet projects because it will take many other TARP companies to pay back enough “profits” to cover the loss. Fourth, I still believe I should have created a bank in December, obviously the government didn’t do any due diligence. If they did they knew this train was upside down.
Why would the government bail out a lender that caters to small businesses in the U.S.? Especially small manufacturers? The government is swiftly and strategically trying to eliminate small businesses in order to further their Globalization-nik dreams of giant global mega corps controlling all business through a World Bank directed cartel. Small businesses have no place in the “New World Order”.
Free market capitalism has been under attack for a long time. The Globalization-niks in business and in our government can’t wait to see it buried and forgotten.
So what if CIT goes down,and along with it 760 manufacturers and 300,00 retailers (Bloomberg’s figures).
I am sure that Goldman Sachs will find a way to make money out of this.
Angel.
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