Geithner "Burned Billions," Shafted Taxpayers on CIT Loan, Prof. Bill Black Says

[Crewleader]

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."

http://finance.yahoo.com/techticker/article/364593/Geit...

[msongs]

1. shouldnt the feds have first dibs? like the IRS does? nt

[Why Syzygy]

3. kickbacks

Kickbacks are illegal in every profession except US Representatives and cabinet posts.
They call them "campaign contributions".

[Larkspur]

2. Fire Geithner and replace him with William Black!!!!

Geithner is a Wall Street hack and his staff is from Goldman Sachs, who want the taxpayers to pay for their mistakes.

[amandabeech]

4. That's the best idea I've heard in a long time.

Then get Elizabeth Warren in a top position, along with James Galbraith and as an advisor, Stiglitz.

Only in my dreams. And yours.

[Crewleader]

5. and mine

[amandabeech]

6. Of course! n/t

[MsLeopard]

7. And get Spitzer in there too

A dream team in the fight against corruption!