CIT Files for Bankruptcy
Nov 02, 2009
The 5th largest bankruptcy just occurred on Sunday, November 1, when CIT filed for chapter 11 bankruptcy. Because of its name (CIT), I wonder if they might be connected to CITI bank. Does anyone know if they are a subsidiary or connected in any way organizationally? Regardless, I see this as having a prophetic connection to "That Great CITI."
As usual the American taxpayer gets hosed again, this time for $2.3 billion, thanks to Timothy Geitner, who gave CIT money from the TARP funds but placed the taxpayers at the end of the line of creditors. Watch the short news video here:
Is this incident the reason for the "watch date" as posted a few days earlier? I'm still assessing information coming in, and will comment on it shortly.
ADDENDUM: A READER ANSWERS MY QUESTION AS FOLLOWS:
I was employed by CIT from 1953 to 1964. I was actually employed by a subsidiary Universal CIT Credit Corp which was formed when they purchased after WWII Universal Credit which had been Ford Motor Company's retail finance arm. They are not connected in any way to CITI. I believe their organization goes back to shortly after WWI. In the firm I was with we financed auto, farm equipment dealers primarily and in return purchased their retail paper - CIT Financial was heavily involved in factoring and in heavy machinery, etc. At the time I was with UCIT they didn't buy anything under about 5000.00 which in the 50's was a lot of money. This present difficulty says that small business where they are the commodity that keeps them going - is in a lot of trouble.