*CIT SEES 2Q LOSS OF MORE THAN $1.5 BILLION *CIT SAYS MAY SEEK BANKRUPTCY WITHOUT SUCCESSFUL AUG Tender *CIT SAYS `EXISTING LIQUIDITY' NOT ENOUGH FOR AUG. DEBT PAYMENT *CIT EXPERIENCED 'SIGNIFICANT' BOOST IN DRAWS ON COMMITMENTS *CIT SAYS CIT BANK COULD BE PUT IN RECEIVERSHIP IF COMPANY FILES *CIT WON'T BE ABLE TO ISSUE GOVT-GUARANTEED DEBT UNDER TLGP *CIT MAY NEED TO FILE FOR RELIEF IF TENDER CONDITION NOT MET *CIT TO PAY 2% EXIT FEE ON AMOUNTS PRE-PAID FROM BONDHOLDER LOA *CIT SAYS EXISTING LIQUIDITY INSUFFICIENT FOR AUG. MATURITY PAY
Mentioned that the FDIC might take it over..... This is truly amazing, just yesterday they got the billions they needed and today talk of the FDIC moving in is in the news.
Here's a view on the CIT situation that I like: http://accruedint.blogspot.com/2009/07/return-of-jedi.html Esp since AI is a corp/muni credit expert...
Of course it wont, actually it might since the almighty fdic is probably going to step in. I mean do we really want to see commercial real estate continue to head south. Near me there are so many stores closing up, the other day I went out to a mall and noticed store after store offering discounts as high as 70% off.
with tarp funds still available (200B) why is the government leting this one fail? What board member pissed off the treasury, i mean goldman?