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- CIT's bankruptcy filing, including a full listing of its creditors. CIT lists $65B in liabilities.
-
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This news story has 12 comments:
Want to see what America has become? Just spend an hour or so perusing television and the various channels.
Sad as it may seem, we have completely lost our way as a country and people. Quantity over quality is all that matters and the things that are given the most importance in our lives are based almost solely on stupidity and brainwashing.
Very sad indeed.
On Nov 01 04:39 PM JohnLocke wrote:
> "Under the proposed prepackaged plan of reorganization, all existing
> common and preferred stock will be cancelled upon emergence."
>
> So much for that preferred stock given to the FED and the FDIC as
> collateral for the 300 Billion in bailout money they recieved...
>
>
> What a bunch of crooks...
On Nov 01 04:48 PM Archman Investor wrote:
> We all try and hope that somehow, somewhere, this all matters to
> average Americans, but alas it doesn't.
>
> Want to see what America has become? Just spend an hour or so perusing
> television and the various channels.
>
> Sad as it may seem, we have completely lost our way as a country
> and people. Quantity over quality is all that matters and the things
> that are given the most importance in our lives are based almost
> solely on stupidity and brainwashing.
>
> Very sad indeed.
CIT only recieved 2.3 B like the release says but they do this???
"Institution will issue $7 bn of preferred stock with an 8% dividend rate (under terms described below). $4 bn of preferred will be issued to UST. $3 bn will be issued to the FDIC."
So in return for 2.3 B they issued 7 B in debt at 8% that will now disappear when CIT emerges from this bankruptcy.
I bet you believe the current unemployment numbers as well:-)
The point is the dissolution of the stock which was used as an obligation to me the taxpayer...
On Nov 01 04:55 PM jculley wrote:
> You can keep spouting off about $300 billion that CIT recieved but
> it doesn't make it true. The release even states they only recieved
> $2.3 billion from the government. Be pissed off about the bailout
> all you want, just don't make stuff up to justify being pissed off.
>
In a bankruptcy creditor claims are met in order of seniority. That's according to the law, as it should be (which, of course, your same government officials ignored in the GM reorganization, and somehow got away with it).
On Nov 01 05:41 PM JohnLocke wrote:
> So I understand you correctly...
>
> CIT only recieved 2.3 B like the release says but they do this???
>
>
> "Institution will issue $7 bn of preferred stock with an 8% dividend
> rate (under terms described below). $4 bn of preferred will be issued
> to UST. $3 bn will be issued to the FDIC."
>
> So in return for 2.3 B they issued 7 B in debt at 8% that will now
> disappear when CIT emerges from this bankruptcy.
>
> I bet you believe the current unemployment numbers as well:-)
>
> The point is the dissolution of the stock which was used as an obligation
> to me the taxpayer...
"Citigroup Inc. will acquire the bulk of Wachovia's assets and liabilities, including five depository institutions and assume senior and subordinated debt of Wachovia Corp. Wachovia Corporation will continue to own Wachovia Securities, AG Edwards and Evergreen. The FDIC has entered into a loss sharing arrangement on a pre-identified pool of loans. Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.
This is where John dives in (FYI- Sheila Bair is the Chairperson of the FDIC):
And so we need to understand the significance of that guarantee. The significance is as follows: Once Citi owns $312 billion in assets on which they can only lose $42 billion the remaining pool must be worth $270 billion. That $270 billion is guaranteed by the US Government – as the FDIC is a full faith and credit organisation. Citigroup can put that $270 billion (plus the $42 billion in non-guaranteed assets) in a pool and repo it – and as Treasuries yield very little they will wind up paying well under a percent of interest. The Sheila Bair decision was equivalent to a cash injection into Citigroup of 270 billion because the repo-market will turn government guaranteed loans into cash."
CIT has the benefit of keeping all of it's business branchs out of bankruptcy but is one giant hydra of a business thanks to Glass-Stegal repeals in 1999 which by the way were because of CIT and then Treasury Secretary Robert Rubin who later became CEO of CIT....
Open your eyes to the larger picture here...
On Nov 01 07:32 PM ebworthen wrote:
> Hangings are still in order for the bailouts, unless your favorite
> sitcom or reality show might interfere with stopping tyranny and
> the new slavery.
So you are clear:
CIT is not C
C did not buy Wachovia
WFC bought Wachovia
Neither WFC, C or Wachovia have anything to do with CIT going bankrupt.
On Nov 01 06:19 PM JohnLocke wrote:
> Taken from:econompicdata.blo...
>
>
> "Citigroup Inc. will acquire the bulk of Wachovia's assets and liabilities,
> including five depository institutions and assume senior and subordinated
> debt of Wachovia Corp. Wachovia Corporation will continue to own
> Wachovia Securities, AG Edwards and Evergreen. The FDIC has entered
> into a loss sharing arrangement on a pre-identified pool of loans.
> Under the agreement, Citigroup Inc. will absorb up to $42 billion
> of losses on a $312 billion pool of loans. The FDIC will absorb losses
> beyond that. Citigroup has granted the FDIC $12 billion in preferred
> stock and warrants to compensate the FDIC for bearing this risk.
>
> This is where John dives in (FYI- Sheila Bair is the Chairperson
> of the FDIC):
>
> And so we need to understand the significance of that guarantee.
> The significance is as follows: Once Citi owns $312 billion in assets
> on which they can only lose $42 billion the remaining pool must be
> worth $270 billion. That $270 billion is guaranteed by the US Government
> – as the FDIC is a full faith and credit organisation. Citigroup
> can put that $270 billion (plus the $42 billion in non-guaranteed
> assets) in a pool and repo it – and as Treasuries yield very little
> they will wind up paying well under a percent of interest. The Sheila
> Bair decision was equivalent to a cash injection into Citigroup of
> 270 billion because the repo-market will turn government guaranteed
> loans into cash."
>
> CIT has the benefit of keeping all of it's business branchs out of
> bankruptcy but is one giant hydra of a business thanks to Glass-Stegal
> repeals in 1999 which by the way were because of CIT and then Treasury
> Secretary Robert Rubin who later became CEO of CIT....
>
> Open your eyes to the larger picture here...
Therefore, "no one" (to speak of) gives a hoot.
On Nov 01 04:48 PM Archman Investor wrote:
> We all try and hope that somehow, somewhere, this all matters to
> average Americans, but alas it doesn't.
>
> Want to see what America has become? Just spend an hour or so perusing
> television and the various channels.
>
> Sad as it may seem, we have completely lost our way as a country
> and people. Quantity over quality is all that matters and the things
> that are given the most importance in our lives are based almost
> solely on stupidity and brainwashing.
>
> Very sad indeed.
On Nov 01 07:32 PM ebworthen wrote:
> Hangings are still in order for the bailouts, unless your favorite
> sitcom or reality show might interfere with stopping tyranny and
> the new slavery.