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To: Paul Senior who wrote (30263)	3/6/2008 10:01:10 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78742

CIT, i don't think the student loans are CIT's problem The larger problem is that they are not done writing off their mortgage assets. The new 10k provides some more insight (the 5 loan pool buckets) and it does not look pretty. they were able to extract 5.2B$ in cash from a little less than 10B$ in loans so they are still sitting on 5B$ in net assets of which 50% is constituted of loans with pretty bad looking stats (they somehow avoid the toxic word subprime). My loss estimate of 2B$ from December 2007 still holds, in fact it could be more than that the way things have been going lately. Message 24152767

To: Paul Senior who wrote (30263)	3/7/2008 11:24:18 AM
From: rich evans	Respond to of 78742

Paul, I called CIT to get a 10K and talked to someone in IR. They have about 170 mill in private student loans which are consolidated which are not guaranteed. He would not say whether they intended to write it off. I doubt very much if they need to write it off but may increase the loss provision. I asked if there was any info out there to account for the drop in CIT yesterday. He indicated the company has put out no announcemnets and he knew of no announcement/action by Moodys or others to downgrade CIT credit ratings. All financials took a big hit yesterday and he indicated CIT was hit more then others. I sold a $10 put in Wash Mut today. There default rate is less then other competitors. I don't expect the stock to be put to me. Rich