Absolutely nothing. Remember last year when Conservatives were saying "let them fail", and the Left was saying if we let them fail, it would affect too many households down the line?
Well, CIT is going to fail, those households down the line are still going to be affected, and "we" get to foot the bill. To the tune of $2.3 billion.
So what did we get for our money?
The $2.3 billion lost in taxpayer funds is the largest amount lost since the government began infusing banks with capital, according to the Financial Times.
CIT made the filing in New York bankruptcy court Sunday, after a debt-exchange offer to bondholders failed. CIT said in a statement that its bondholders have overwhelmingly approved a prepackaged reorganization plan which will reduce total debt by $10 billion while allowing the company to continue to do business.
"The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy," said Jeffrey M. Peek, chairman and CEO. Peek has said he plans to step down at the end of the year.
The Chapter 11 filing is one of the biggest in U.S. corporate history. CIT's bankruptcy filing shows $71 billion in finance and leasing assets against total debt of $64.9 billion. Its collapse is the latest in a string of huge cases driven by the financial crisis over the past two years, as bailed out industry heavyweights like General Motors and Chrysler both entered bankruptcy court.
Hate to say "I told ya so"..
By the way, didn't the Obama Administration tell us how the American Taxpayer was going to see nice returns on their "investment" of helping out Companies such as these?
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