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Reply #31: They will withdraw from protection however they will not pay back taxpayers. [View All]

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Statistical Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-02-09 02:10 PM
Response to Reply #25
31. They will withdraw from protection however they will not pay back taxpayers.
Why would any company voluntarily choose to pay back something they legally don't need to.

Don't get mad at CIT get mad at your elected officials and appointed govt employees who provided CIT funding that was junior (behind existing debt). Doing so virtually guaranteed a Bankruptcy judge will wipe it out in BK proceedings.

The Bankruptcy judge will likely wipe out taxpayer bonds using existing bankruptcy law. The rules for this "game" were known well in advance. The govt simply was stupid and didn't protect its investment.
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  -So CIT goes under and the market opens higher? TwixVoy  Nov-02-09 09:07 AM   #0 
  - You are aware that stocks can go up on bad news  skipos   Nov-02-09 09:13 AM   #1 
  - Don't forget Credit Default Swaps, which was a big reason for the meltdown  leveymg   Nov-02-09 09:19 AM   #2 
  - No shit sherlock  TwixVoy   Nov-02-09 09:21 AM   #3 
  - they are screwing taxpayers out of 2.5 billion by bankruptcy...sound moves raise stocks nt  msongs   Nov-02-09 09:28 AM   #4 
  - This was not unexpected news.  Ikonoklast   Nov-02-09 09:40 AM   #5 
  - No kidding  TwixVoy   Nov-02-09 09:44 AM   #7 
  - The Great Wall Street Gambling Casino has no connection to reality. nt  Speck Tater   Nov-02-09 09:42 AM   #6 
  - Did you ever think they had already priced a Citi failure a long time ago  AngryAmish   Nov-02-09 09:45 AM   #8 
  - When do you think Citi is going to fail?  TwixVoy   Nov-02-09 09:57 AM   #11 
     - you got my typo  AngryAmish   Nov-02-09 09:58 AM   #12 
        - So is Citi  AllentownJake   Nov-02-09 10:18 AM   #18 
        - CIT isn't a corpse.  Statistical   Nov-02-09 10:29 AM   #21 
           - The asset number will get revised downward  AllentownJake   Nov-02-09 01:12 PM   #28 
              - No doubt but so will liabities.  Statistical   Nov-02-09 02:05 PM   #29 
  - They don't like uncertainty. CIT has been "uncertain" for a year now  Ruby the Liberal   Nov-02-09 09:48 AM   #9 
  - Another Big Bank failure right after gasoline prices rose.  Kansas Wyatt   Nov-02-09 09:49 AM   #10 
  - Facepalm  Dreamer Tatum   Nov-02-09 10:34 AM   #22 
  - Gut Check  Kansas Wyatt   Nov-02-09 01:01 PM   #25 
     - They will withdraw from protection however they will not pay back taxpayers.  Statistical   Nov-02-09 02:10 PM   #31 
        - Then CIT... F A I L E D!  Kansas Wyatt   Nov-02-09 02:17 PM   #32 
           - You Winz Kansas!  Statistical   Nov-02-09 02:18 PM   #33 
  - CIT didn't fail.  Statistical   Nov-02-09 10:34 AM   #23 
     - "CIT didn't fail." - Then why are they bankrupt?  Kansas Wyatt   Nov-02-09 12:59 PM   #24 
        - Read a little bit on how bankruptcy works.  Statistical   Nov-02-09 02:07 PM   #30 
  - What do you care? You shorted the market, remember?  Dreamer Tatum   Nov-02-09 10:03 AM   #13 
  - I still say take every nickel out  TwixVoy   Nov-02-09 10:07 AM   #14 
     - So long as everyone in this thread understands your personal interest in the market tanking  Dreamer Tatum   Nov-02-09 10:16 AM   #17 
  - Knowledgable Traders  On the Road   Nov-02-09 10:15 AM   #15 
  - You seem dissapointed  HughMoran   Nov-02-09 10:16 AM   #16 
  - CIT isn't going under.  Statistical   Nov-02-09 10:27 AM   #19 
  - I wish there were more of you on DU. nt  Dreamer Tatum   Nov-02-09 10:29 AM   #20 
  - CIT has a cash cow  AllentownJake   Nov-02-09 01:05 PM   #26 
  - Market is down now  AllentownJake   Nov-02-09 01:06 PM   #27 

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