CIT ? ..... Oh sh*t !!!!!

[marmar]

CIT Group’s Banks Said to Weigh Bankruptcy Financing for Lender
By Pierre Paulden, Elizabeth Hester and Kristen Haunss


July 18 (Bloomberg) -- CIT Group Inc. advisers, including JPMorgan Chase & Co. and Morgan Stanley, are discussing options for funding the lender if it enters bankruptcy, people with knowledge of the matter said.

JPMorgan and Morgan Stanley are talking with other banks about a debtor-in-possession loan, used to fund a company’s operations after it seeks court protection from creditors, according to the people, who declined to be identified because the negotiations are private. CIT and its advisers, including Morgan Stanley and Evercore Partners Inc., are also trying to arrange rescue financing to avert bankruptcy, they said.

CIT may need as much as $6 billion to avoid filing for bankruptcy protection after the U.S. wouldn’t give the firm a second bailout, according to CreditSights Inc. A failure of CIT, which has almost $76 billion in assets, would be the biggest bank collapse by that measure since regulators seized Washington Mutual Inc. in September.

“This thing doesn’t have a future,” CreditSights analyst David Hendler said yesterday in a telephone interview. “Anything is possible but the problem is not solvable anymore. They’re just in denial it’s finally over,” the New York-based analyst said referring to the rescue financing. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a.URlk.8.8dQ

[madrchsod]

1. obama`s advisors are doing a great job....

we are going to end up with two or three banks controlling all lending in the usa.

[LiberalAndProud]

2. 3 by my count

Goldman Sachs
Chase USA
Bank of America

This is not a good outcome, especially considering the cost of the bailout.

[FarCenter]

3. There are 6 major US banks

Goldman Sachs, JP Morgan Chase, Wells Fargo, Morgan Stanley, Bank of America and Citigroup.

Most countries have only a few major banks. There is no particularly good reason to have more. If you have a few, it is obvious that the free market BS doesn't work, and you can regulate them well.

The plethora of US banks is a historical anomaly. Originally, banks could have only one office. Then branch banking with multiple offices was allowed, but only in one state. Then interstate branching was legalized.

[madrchsod]

4. it was`t all that long ago that banks within a community could`t have branch offices....

[The Backlash Cometh]

5. Why can't we get the money from Goldman Sachs since they obviously

didn't need it?

[MadMaddie]

6. If you are banking at any of these banks then it's time to pull

your money out and go to a credit union. These organizations will continue to pilfer Americans hard earned money in excessive fees, no customer service basically a black hole.

Screw them.

[Yupster]

7. What I worry about

is there are hundreds of thousands of Americans who have lent money to CIT Group by buying their bonds. They are mostly older people.

When bankruptcy is declared, that wealth will pretty much disappear. That will mean less people going to restaurants, buying new shoes, etc. Just one more step downward for the economy.

[Wednesdays]

8. K&R

:kick: