Geithner "Burned Billions," Shafted Taxpayers on CIT Loan, Prof. Bill Black Says
>>>William Black ..rips Geithner... "We are full force into the cover-up phase. Says Sheila about to goof-up CRE the way Geithner just did with AGI & CIT.<<<
Posted Nov 02, 2009 12:00pm EST by Peter Gorenstein in Investing, Recession, Banking
Related: cit, aig, xlf, skf, gs, c, bac
Another one of the nation's largest lenders has filed for bankruptcy. On the brink for months, CIT filed for Chapter 11 protection on Sunday.
The prepackaged plan allows CIT to restructure its debt while trying to keep badly needed loans flowing to thousands of mid-sized and small businesses. The plan keeps CIT's operations alive and makes it possible for the company to exit bankruptcy by year's end.
But here's the bad news: While senior debt holders will only lose 30% of their investment, we, the U.S. taxpayer, will lose the entire $2.3 billion we lent the company this summer.
William Black, professor at the University of Missouri-Kansas City School of Law is dumbfounded. "We put ourselves on the hook in a completely inept way where we lose first. We lose entirely as the taxpayers." more ......
finance.yahoo.com |
